RAJASTHAN COTTAGE INDUSTRIES,JAIPUR vs. INCOME TAX OFFICER, WARD-5-1, JAIPUR
What did the Tribunal hold?
The Tribunal held that the disallowance of employees' contribution to PF and ESI was incorrect. The contributions were deposited before the due date of filing the return of income, and this issue is covered by jurisdictional High Court decisions upheld by the Supreme Court.
What were the facts?
The assessee claimed deductions for employees' contribution to PF and ESI. The contributions were deposited late as per the respective Acts but before the due date for filing the income tax return.
What were the issues?
Whether late deposit of employees' contribution to PF and ESI, but before the due date of filing the return of income, is allowable as a deduction.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(3)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- CIT v. State Bank of Bikaner & Jaipur524 citing363 ITR 70 · 2014 · HC · Read judgment
- CIT v. Rajasthan State Beverages Corporation Ltd.191 citing250 Taxmann 32 · 2017 · HC
- 411/225 Taxman 6 (Mag.) (Raj.) and CIT v. Jaipur Vidhut Vitaran Nigam Ltd.115 citing363 ITR 307 · 2014 · HC
Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR
Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 983/JP/2018
“5. So far as the question relating to privilege fees amounting to Rs.26.00 Crores in the instant year as well as the deduction of claim of Rs.17,80,765/- on account of Provident Fund (PF) and ESI is concerned, this Court has extensively considered the aforesaid two questions in assessee's own case vide judgment and order dt.26.05.2016 referred to (supra) and has held that the privilege fees being a revenue expenditure, is required to be allowed as a revenue expenditure. This court in the aforesaid case has also allowed the claim of the assessee, in so far as payment of PF & ESI etc. is concerned, on the finding of fact that the amounts in question were deposited on or before the due date of furnishing of the return of income and taking in consideration judgment of this Court in Commissioner of Income Tax Vs. State Bank of Bikaner & Jaipur and Commissioner of Income Tax Vs. Jaipur Vidyut Vitaran Nigam Ltd. (2014) 363 ITR 70 (Raj.) and accordingly both the questions are covered by the aforesaid judgment and against the revenue.”
The said decision was challenged by the Revenue before the Hon’ble Supreme Court but the SLP filed by the Revenue has been dismissed by the Hon’ble Supreme Court reported 250 taxmann 32. Accordingly, Rajasthan Cottage Industries vs. ITO disallowances/additions made by the AO on account of employees contribution to PF & ESI is deleted and claim of the assessee is allowed. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 24/04/2019.
Sd/- Sd/- ¼fot; iky jko½ ¼foØe flag ;kno½ (Vikram Singh Yadav) (Vijay Pal Rao) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 24/04/2019. *Santosh. आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- Rajasthan Cottage Industries, Jaipur. 2. izR;FkhZ@ The Respondent- ITO, Ward 5(1), Jaipur. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File {ITA No. 983/JP/2018} vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेज. त्महपेजतंत
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