Saravana Stores (Gold Palace), Chennai V. Addl CIT, Central Cir-1(2), Chennai

ITA 890/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9650 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 01-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALMALSAWMA PACHUAU
• Assessee Lawyers: H YESHWANTH KUMAR
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , ! ' , $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.890/CHNY/2019 ( )( / ASSESSMENT YEAR : 2013-14 M/S SARAVANA STORES (GOLD PALACE), NO.28, RANGANATHAN STREET, T. NAGAR, CHENNAI - 600 017. PAN : ABSFS 1515 M V. THE ADDITIONAL COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(2), CHENNAI. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI H. YESHWANTH KUMAR, CA -.+, / 0 / RESPONDENT BY : SHRI LALMALSAWMA PACHUAU, JCIT 1 / 2$ / DATE OF HEARING : 17.06.2019 34) / 2$ / DATE OF PRONOUNCEMENT : 19.06.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -18, CHENN AI, DATED 14.02.2019 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS ADDIT ION OF 39,45,053/- MADE TOWARDS EMPLOYEES CONTRIBUTION TO PROVIDENT FUND AND EMPLOYEES STATE INSURANCE CORPORATION. 2 I.T.A. NO.890/CHNY/19 3. SHRI H. YESHWANTH KUMAR, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE ENTIRE PAYMENT TOWARDS EMPLOYEES CONTRIBUTION WAS MADE TO THE RESPECTIVE ACCOUNTS BE FORE THE DUE DATE FOR FILING OF RETURN OF INCOME. REFERRING TO THE ORDER OF THE CIT(APPEALS), MORE PARTICULARLY PARA 2.1, THE LD. R EPRESENTATIVE SUBMITTED THAT THE ENTIRE PAYMENT WAS MADE BEFORE T HE DUE DATE FOR FILING THE RETURN OF INCOME. THEREFORE, IN VIEW OF THE JUDGMENT OF MADRAS HIGH COURT IN CIT V. INDUSTRIAL SECURITY AND INTELLIGENCE INDIA (P.) LTD. IN TC(A). NO.585 & 586 OF 2015 DATE D 24 TH JULY, 2015, ACCORDING TO THE LD. REPRESENTATIVE, THERE CANNOT B E ANY DISALLOWANCE. 4. ON THE CONTRARY, SHRI LALMALSAWMA PACHUAU, THE L D. DEPARTMENTAL REPRESENTATIVE, SUBMITTED THAT THE PAY MENT HAS TO BE MADE BEFORE THE DUE DATE PRESCRIBED UNDER RESPECTIV E ENACTMENTS. IN THIS CASE, THE PAYMENT WAS MADE BEYOND THE PRESC RIBED TIME LIMIT ALLOWED UNDER PROVIDENT FUND AND ESI ACTS. T HEREFORE, ACCORDING TO THE LD. D.R., THE CIT(APPEALS) HAS RIG HTLY CONFIRMED THE DISALLOWANCE. 3 I.T.A. NO.890/CHNY/19 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS NOT IN DISPUTE THAT THE PAYMENTS WERE MADE TOWARDS EMPLOYE ES CONTRIBUTION TO PROVIDENT FUND AND EMPLOYEES STATE INSURANCE CORPORATION BEFORE THE DUE DATE FOR FILING THE RETU RN OF INCOME. THE ONLY CONTENTION OF THE LD. D.R. IS THAT THE PAYMENT HAS TO BE MADE BEFORE THE DUE DATE PRESCRIBED UNDER THE RELEVANT A CTS. THE MADRAS HIGH COURT IN INDUSTRIAL SECURITY AND INTELL IGENCE INDIA (P.) LTD. (SUPRA) HAD AN OCCASION TO EXAMINE THIS ISSUE AND FOUND THAT WHEN THE PAYMENTS WERE MADE BEFORE THE DATE OF FILI NG OF RETURN OF INCOME, THE SAME HAS TO BE ALLOWED SINCE ADMITTEDLY THE PAYMENTS WERE MADE BEFORE THE DUE DATE FOR FILING THE RETURN OF INCOME UNDER SECTION 139(1) OF THE ACT. THEREFORE, THIS TRIBUNA L IS OF THE CONSIDERED OPINION THAT THERE CANNOT BE ANY DISALLO WANCE. IN VIEW OF THE ABOVE, ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE DISALLOWANCE MADE TOWARDS THE PAYMENT OF PROVID ENT FUND AND EMPLOYEES STATE INSURANCE CORPORATION IS DELETED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. 4 I.T.A. NO.890/CHNY/19 ORDER PRONOUNCED IN THE COURT ON 19 TH JUNE, 2019 AT CHENNAI. SD/- SD/- ( ! ' ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 19 TH JUNE, 2019. KRI. / -278 98)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 :2 () /CIT(A)-18, CHENNAI-34 4. PRINCIPAL CIT, CENTRAL-1, CHENNAI 5. 8; -2 /DR 6. <( = /GF.