MAX VIGIL SECURITIES PVT. LTD.,AHMEDABAD vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(1)(2), AHMEDABAD

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ITA 1300/AHD/2017Status: DisposedITAT Ahmedabad18 February 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 deduction for employees' contribution to PF and ESIC can only be allowed if remitted by the due date prescribed in the respective acts. The appeal was dismissed following the jurisdictional High Court's decision.

What were the facts?

The assessee failed to deposit employees' contributions to PF and ESIC within the prescribed due dates. The Assessing Officer disallowed these amounts, and the CIT(A) upheld the disallowance.

What were the issues?

Whether late remittance of employees' contribution to PF and ESIC is disallowable as a deduction under the Income Tax Act.

Which sections of the Income-tax Act were involved?

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

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 “B” BENCH

Before: Shri Mahavir Prasad & Shri Amarjit Singh

For Appellant: Shri Altaq Saiyad, A.R
For Respondent: Shri Shiv Sevak, Sr. D.R, Shri Altaq Saiyad, A.R

आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-

This assessee’s appeal for A.Y. 2014-15, arises from order of the CIT(A)-2, Ahmedabad dated 20-04-2017, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.

I.T.A No. 1300/Ahd/2017 A.Y. 2014-15 Page No 2 Max Vigil Securities Pvt. Ltd. vs. DCIT

2.

The solitary ground of appeal of the assessee is against the decision of ld. CIT(A) in confirming the addition of Rs. 1,71,61,294/- on account of late remittances of employee’s contribution to the PF and Rs. 6,05,295/- on account late remittance of employees contribution to ESIC totaling to Rs. 1,77,66,589/- u/s. 36(1)(va) r.w.s. 2(24)(x) of the act.

3.

During the course of assessment, the assessing officer has noticed that assessee has not deposited the employees contribution to the PF/ESIC within the due date prescribed in the act therefore he has disallowed an amount of Rs. 1,77,66,589/- as per provisions of section 2(24)(10) r.w.s. 36(1)(va) after placing reliance on the decision of Hon’ble Gujarat High Court in the case of Gujarat State Road Transportation Corporation reported in (2014) 41 taxman.com 100

4.

Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee after referring the decisiont in the case of CIT(A) vs. GSRTC of the Hon’ble Gujarat High Court.

5.

We have heard the rival contentions and perused the material on record carefully. During the course of appellate proceedings before us, the ld. counsel has brought to our notice that aforesaid issue has been decided against the assessee by following the decision of Jurisdictional High Court in the case of Gujarat State Road Transport Corporation (2014) 41 taxman.com 100 (Gujarat). The ld. counsel could not bring any new fact to dispute the finding of the Jurisdictional High Court on the identical issue involved in the case of the assessee. Therefore, after taking into

I.T.A No. 1300/Ahd/2017 A.Y. 2014-15 Page No 3 Max Vigil Securities Pvt. Ltd. vs. DCIT

consideration, the decision of the Hon’ble Gujarat High Court in the case of CIT vs. GSRTC wherein it is held that deduction towards employee’s contribution is to be made as per the due date prescribed in the relevant act we do not find any merit in the appeal of the assessee. Accordingly the appeal of the assessee is dismissed. Therefore, the appeal of the assessee is dismissed.

6.

In the result, the appeal of the assessee is dismissed.

Order pronounced in the open court on 18-02-2019

Sd/- Sd/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 18/02/2019 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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