DEV INFORMATION TECHNOLOGY PVT. LTD.,AHMEDABAD vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2), AHMEDABAD

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ITA 2637/AHD/2017Status: DisposedITAT Ahmedabad05 March 2019AY 2014-153 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 the disallowance made by the Assessing Officer for delayed payment of employee's contribution towards PF/ESIC was justified. The decision followed the jurisdictional High Court's ruling on the matter.

What were the facts?

The assessee failed to deposit employee's contribution towards PF and ESIC by the prescribed due dates. The Assessing Officer made a disallowance of Rs. 51,40,228/- on this account.

What were the issues?

Whether the disallowance of employee's contribution to PF and ESIC is justified when paid after the due date but before the due date of filing the return of income.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: Shri Amarjit Singh

For Appellant: Shri M.J. Shah, A.R
For Respondent: Shri Vinod Tanwani, Sr. D.R, Shri M.J. Shah, A.R

PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-

This assessee’s appeal for A.Y. 2014-15, arises from order of the CIT(A)-1, Ahmedabad dated 20-09-2017, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.

2.

The solitary ground of appeal of the assessee is against the decision of ld. CIT(A) in confirming the disallowance u/s. 2(24)(x) of Rs. 51,40,228/- in respect

I.T.A No. 2637/Ahd/2017 A.Y. 2014-15 Page No 2 of delayed payment of employee’s contribution towards PF and ESIC. During assessment, the assessing officer has noticed that assessee has not deposited employee’s contribution towards PF amounting to Rs. 43,75,034/-and ESIC contribution amounting to Rs. 7,65,194/- as per due date prescribed in the relevant act. Therefore, after following the decision of Hon’ble Gujarat High Court in the case of CIT vs. Gujarat State Road Transport Corporation in ITA No. 637 of 2016, the assessing officer has made disallowance u/s. 2(24)(x) r.w.s. 36(1)(va) of the act and added the amount of Rs. 51,40,228/- to the total income of the assessee.

3.

Aggrieved assessee has filed appeal before ld. CIT(A). The ld. CIT(A) has sustained the addition following the decision of Jurisdictional High Court in the case of CIT vs. GSRTC.

4.

During the course of appellate proceedings before us ld. representatives are agreed that the issue in appeal is squarely covered by the decision of Hon’ble Jurisdictional High Court in the case of CIT vs. GSRTC. On these facts, respectfully following the judgment of Hon’ble Gujarat High court cited supra, we hold that the ld. CIT(A) was right in sustaining the disallowance made by the assessing officer for not depositing the aforesaid employee’s contribution towards PF/ESIC within the due date as stipulated in the relevant act, therefore, we do not find any merit in the appeal of the assessee and the same is dismissed.

5.

In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on 05-03-2019 (MADHUMITA ROY) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 05/03/2019

I.T.A No. 2637/Ahd/2017 A.Y. 2014-15 Page No 3 आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:-

1.

Assessee

2.

Revenue

3.

Concerned CIT

4.

CIT (A)

5.

DR, ITAT, Ahmedabad

6.

Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील"य अ"धकरण, अहमदाबाद

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