M/s. Om Associates, Bhubaneswar V. DCIT, Circle-4(1), Bhubaneswar

ITA 94/CTK/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4362 (ITAT-CUTTACK)
• Duration Of Justice: 11 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 15-02-2018
• Assessment Year: 2012-2013
• Appeal Filed On: 07-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: NIRANJAN PANDA
• Section: 43B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI N.S.SAINI, AM & SHRI PAV AN KUMAR GADALE, JM ./ ITA NO. 94 / CTK /20 1 7 ( / ASSESSMENT YEAR : 2012 - 2013 ) M/S OM ASSOCIATES , PLO T NO.582/959, LANE - 4, POKHARIPUT, BHUBANESWAR - 751020 VS. DCIT, CIRCLE - 4(1), BHUBANESWAR ./ PAN NO. : AA AFO 8711 C ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI NIRANJAN PANDA , AR /REVENUE BY : SHRI D.K.PRADHAN , CITDR / DATE OF HEARING : 1 5 / 0 2 /201 8 / DATE OF PRONOUNCEMENT 15 / 0 2 /201 8 / O R D E R PER SHRI N.S.SAINI , A M : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT( A ) - 2 , BHUBANESWAR DATED 30. 1 1.201 6 FOR THE ASSESSMENT YEAR 2012 - 2013. 2 . THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.27,73,535/ - ON ACCOUNT OF EMPLOYEES CONTRIBUTION TO PROVIDENT FUND U/S.2( 24)(X) R.W.S.36(1)(VA) OF THE ACT FOR NOT DEPOSITING THE AMOUNT WITHIN THE DUE DATE STIPULATED IN THE RELEVANT ACT. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS NOT DEPOSITED THE EMPLOYEES CONTRIBUTION TO PROVIDENT FUND BY THE DUE DATES AS STIPULATED UNDER THE RELEVANT ACT I.E. BY 15 TH OF THE FOLLOWING MONTH TO WHICH THE CONTRIBUTION RELATES. THE DETAILS OF THE PAYMENTS ARE AS UNDER : - ITA NO. 94 /2017 2 MONTH EMPLOYEES CONTRIBUTION AMOUNT (RS.) APRIL, 2011 1,98,204 23.05.2011 MAY, 2011 1,98,801 25.06.2011 JUNE, 2011 1,98,801 26.07.2011 JULY,2011 2,01,091 24.08.2011 AUGUST, 2011 2,06,782 22.09.2011 SEPT., 2011 2,10,982 22.10.2011 OCT, 2011 2,16,526 29.11.2011 NOV., 2011 2,56,135 19.12.2011 DEC, 2011 2,57,608 18.01.2012 JAN, 2 012 2,71,424 21.02.2012 FEB, 2012 2,79,366 23.03.2012 MAR, 2012 2,78,420 18.04.2012 TOTAL 27,73,535 THEREFORE, THE AO DISALLOWED DEDUCTION FOR THE SAME U/S.36(1)(VA) R.W.S.2(24)(X) OF THE ACT. 4. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF ASSESSIN G OFFICER. 5. THE AR OF THE ASSESSEE SUBMITTED THAT IN VIEW OF THE DECISION OF HON BLE SUPREME COURT IN THE CASE OF RAJASTHAN STATE BEVERAGES CORPORATION LTD., [2017] 84 TAXMANN.COM 185 (SC), NO DISALLOWANCE OF DEDUCTION FOR EMPLOYEES CONTRIBUTION TO PROV IDENT FUND IS TO BE MADE WHERE THE AMOUNT IS DEPOSITED BY THE ASSESSEE WITHIN THE TIME PRESCRIBED FOR FILING RETURN OF INCOME U/S.139(1) OF THE ACT. 6. THE DR COULD NOT CONTROVERT THE ABOVE SUBMISSION OF THE AR OF THE ASSESSEE. 7. WE FIND THAT IT IS NOT IN DISPUTE THAT THE EMPLOYEES CONTRIBUTION TO PROVIDENT FUND OF RS. 27,73,535/ - WAS PAID BY THE ASSESSEE BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME U/S.139(1) OF THE ACT. THEREFORE, NO DISALLOWANCE CAN BE MADE FOR DEDUCTION OF THE SAME U/S.36(1)(VA) R.W.S.2(24)(VA) OF THE ACT IN VIEW OF THE DECISION OF HONBLE SUPREME COURT ITA NO. 94 /2017 3 IN THE CASE OF RAJASTHAN STATE BEVERAGES CORPORATION LTD., [2017] 84 TAXMANN.COM 185 (SC), WHERE IT WAS HELD AS UNDER SECTION 43B, READ WITH SECTION 36(1)(VA), OF THE INCOME - TAX ACT, 1961 - BUSINESS DISALLOWANCE - CERTAIN DEDUCTIONS TO BE ALLOWED ONLY ON ACTUAL PAYMENT (PF AND ESI CONTRIBUTION) - HIGH COURT BY IMPUGNED ORDER HELD THAT AMOUNT CLAIMED ON PAYMENT OF PF AND ESI HAVING BEEN DEPOSITED ON OR BEFORE DUE DATE OF FILING OF RETURNS, SAME COULD NOT BE DISALLOWED UNDER SECTION 43B OR UNDER SECTION 36(1)(VA) - WHETHER SLP AGAINST SAID IMPUGNED ORDER WAS TO BE DISMISSED - HELD, YES [PARA 2] [IN FAVOUR OF ASSESSEE] 8. RESPECTFULLY FOLLOWING THE DECISION OF HON BLE SUPREME COURT IN THE CASE OF RAJASTHAN STATE BEVERAGES CORPORATION LTD. (SUPRA), WE SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DELETE THE ADDITION OF RS.27,73,535/ - AND ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE. 9 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE COURT ON THURSDAY THE 15 TH DAY OF FEBRUARY, 2018 AT CUTTACK. SD/ - ( PAVAN KUMAR GADALE ) S D/ - (N. S. SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK ; DATED 15 / 02 /201 8 . . / PKM , SENIOR PRIVATE SECRETARY / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, CUTTACK 1. / THE APPELLANT - M/S OM ASSOCIATES, PLOT NO.582/959, LANE - 4, POKHARIPUT,BHUBANESWAR - 751020 2. / THE RESPONDENT - DCIT, CIRCLE - 4(1), BHUBANESWAR 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//