OCEAN AGRO (INDIA) LTD.,AHMEDABAD vs. DCIT,CIRCLE-3(1)(2), AHMEDABAD

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ITA 179/AHD/2018Status: DisposedITAT Ahmedabad24 April 2019AY 2014-152 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The tribunal held that employee's contribution to PF/ESI deposited beyond the due date prescribed under Section 36(1)(va) is not eligible for deduction under Section 43B, even if deposited before the return filing due date. This decision follows the jurisdictional High Court's rulings.

What were the facts?

The assessee deducted Provident Fund (PF) and Employee's State Insurance (ESI) contributions from employees but deposited them after the due date prescribed by law, though before the return filing due date. The AO disallowed the deduction based on Section 2(24)(x) r.w.s. 36(1)(va) of the Income Tax Act.

What were the issues?

Whether employee's contribution to PF/ESI deposited after the statutory due date but before the return filing due date is allowable as a deduction.

Which sections of the Income-tax Act were involved?

Section 2(24)(x),Section 36(1)(va),Section 43B

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, AHMEDABAD – BENCH ‘B’

Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGH

Hearing: 09/04/2019Pronounced: 24/04/2019

आयकर अपील�य अ�धकरण, अहमदाबाद �यायपीठ - अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD – BENCH ‘B’

BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.179/Ahd/2018 �नधा�रण वष�/Asstt. Year: 2014-15 Ocean Agro (India) Ltd. Vs. DCIT, Cir.3(1)(2) A/207, Oxford Avenue Ahmedabad. Ashram Road Ahmedabad 380 009. PAN : AAACO 1849 A

अपीलाथ�/ (Appellant) �त् यथ�/ (Respondent)

Assessee by : Ira Kapoor, AR Revenue by : Shri Dinesh Singh, Sr.DR सुनवाई क� तार�ख/Date of Hearing : 09/04/2019 घोषणा क� तार�ख /Date of Pronouncement: 24/04/2019 आदेश/O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: Assessee is in appeal before the Tribunal against order of the ld.CIT(A)-9, Ahmedabad dated 21.11.2017 passed for the Asstt.Year 2014-15.

2.

Though the assessee has raised as many as five grounds of appeal, but only issue involved in these grounds relates to disallowance of payment of Rs.2,54,523/- made towards employees’ contribution to the Provident Fund and Employee’s State Insurance, which have been made before the due date of filing of return of income.

ITA No.179/Ahd/2018 2 3. Brief facts in this regard are the assessee has deducted PF contribution from its employees, but the same was not deposited in the Government account within the due date prescribed under respective laws. The ld.AO with the aid of section 2(24)(x) r.w.s. 36(1)(va) of the Income Tax Act and following judgment of Hon’ble Jurisdictional High Court in the case of CIT v. Gujarat State Road Transport Corporation 366 ITR 170 (Guj) disallowed the claim of the assessee. The action of the AO was confirmed by the ld.CIT(A). Assessee is in further appeal before us.

4.

After hearing both the sides on the issue, we find that this issue has been settled by the Hon’ble jurisdictional High Court in two decisions, viz. in the case of Gujarat State Road Transport Corporation Ltd. (supra) and M/s.Checkmate Facility & Electronics Solutions P.Ltd. Vs.DCIT, in R/Tax Appeal No.1256 of 2018 dated 15.10.2018 wherein it is held that the employees’ contribution to the Employees’ Provident Fund (EPF)/ Employees’ State Insurance Corporation (ESIC) deposited beyond the due date prescribed under section 36(1)(va) of the Income-tax Act, 1961 would not be eligible for deduction under section 43B of the Act, even if deposited before the due date of filing the return. Therefore, there is no merit on this issue. Accordingly grounds of the appeal on this issue are rejected. 5. In the result, appeal of the assessee is dismissed. Order pronounced in the Court on 24th April, 2019.

Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 24/04/2019

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