M/s Unison Insurance Broking Services P. Ltd., Vadodara V. Tax Recovery Officer-4, Baroda

ITA 898/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6043 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 08-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: M J SHAH
• Keywords: Bad and doubtful debts

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA NO. 898 AND 899/AHD/2016 / ASSESSMENT YEAR: 2012-13 AND 2011-12 M/S.UNISON INSURANCE BROKING SERVICES P.LTD. 601-602, AURUM NR.VASNA HP SCHOOL PUMP VASNA, VADODARA 390 015. PAN : AAACU 2865 Q VS TRO-4 BARODA. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI M.J. SHAH REVENUE BY : MS.MEENAKSHI DOHARE, SR.DR / DATE OF HEARING : 14/02/2018 /DATE OF PRONOUNCEMENT : 15/02/2018 PER RAJPAL YADAV, JUDICIAL MEMBER: PRESENT TWO APPEALS ARE DIRECTED AT THE INSTANCE OF THE ASSESSEE AGAINST SEPARATE ORDERS OF THE LD.CIT(A)-2, VADODAR A DATED 19.1.2016 PASSED FOR THE ASSTT.YEARS 2011-12 AND 2012-13. ISS UE INVOLVED IN BOTH APPEALS ARE COMMON, THEREFORE, WE HEARD THEM TOGETH ER AND DEEM IT APPROPRIATE TO DISPOSE OF THESE APPEALS BY THIS COM MON. 2. SOLE GROUND OF APPEAL IN THE ASSTT.YEAR 2011-12 IS INTER-CONNECTED WITH GROUND NO.1 IN THE ASSTT.YEAR 2012-13. IN THE SE GROUNDS, GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CIT(A) HAS ERRED IN UPHOLDING DISALLOWANCE ITA NO.898 AND 899 /AHD/2016 - 2 - OF RS.8,33,319/- AND RS.5,06,382/- WHICH WERE DISAL LOWED BY THE AO ON THE GROUND THAT EMPLOYEES CONTRIBUTION TOWARDS PF AND ESI WAS NOT MADE BY THE ASSESSEE WITHIN STATUTORY TIME LIMIT PR OVIDED IN THOSE ACT. THE LD.COUNSEL FOR THE ASSESSEE FAIRLY CONCEDED THA T THIS ISSUE DESERVES TO BE DECIDED AGAINST THE ASSESSEE BY VIRTUE OF JUDGME NT OF HONBLE JURISDICTIONAL HIGH COURT RENDERED IN THE CASE OF C IT VS. GUJARAT STATE ROAD TRANSPORT CORPORATION LTD., (2014) 223 TAXMANN 398. HONBLE COURT HAS HELD THAT IF EMPLOYEES CONTRIBUTION TO P F AND ESI ACCOUNT IS MADE BY THE ASSESSEE AFTER DUE DATE INCLUDING GRACE PERIOD THEN ACCORDING TO SECTION 2(24)(X) AND 36(1)(VA) OF THE INCOME TAX ACT ASSESSEE WILL NOT BE ENTITLED TO CLAIM DEDUCTION. THE LD.CIT(A) HAS RIGHTLY UPHELD THE DISALLOWANCE. NO OTHER GROUND I S RAISED IN THE ASSTT.YEAR 2011-12. HENCE, THIS GROUND IN BOTH APP EALS IS DISMISSED. 3. THE ASSESSEE HAS TAKEN ONE MORE GROUND IN THE AS STT.YEAR 2012-13. IT HAS PLEADED THAT THE LD.CIT(A) HAS ERRED IN UPHO LDING DISALLOWANCE OF RS.8,33,382/-. 4. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S CLAIMED BAD DEBTS OF RS.8,33,382/-. THIS AMOUNT WAS SHOWN AS TDS RECEIV ABLE AT THE BEGINNING OF THE YEAR. THE ASSESSEE DID NOT GET CRE DIT FROM THE DEPARTMENT NOR MONEY FROM THE DEDUCTOR. HENCE, IT HAS WRITTEN OFF THIS AMOUNT AS BAD DEBT. THE LD.CIT(A) HAS RELEGATED TH IS ISSUE TO THE FILE OF THE AO FOR VERIFICATION AND RE-ADJUDICATION. THE L D.COUNSEL FOR THE ASSESSEE STATED AT THE BAR THAT AFTER ORDER OF THE LD.CIT(A) THE AO HAS GRANTED NECESSARY RELIEF TO THE ASSESSEE WHILE GIVI NG EFFECT TO THE ORDER OF THE LD.CIT(A). THEREFORE, HE DOES NOT PRESS THIS G ROUND. IN VIEW OF HIS ITA NO.898 AND 899 /AHD/2016 - 3 - STATEMENT, WE DO NOT DEEM IT NECESSARY TO RECORD AN Y FINDING ON THIS ISSUE. HENCE, THIS GROUND IS REJECTED. 5. IN THE RESULT, BOTH APPEALS OF THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 15 TH FEB., 2018. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER