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Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK
Before: SHRI CHANDRA MOHAN GARG
IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK
BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER
ITA No.286/CTK/2018 Assessment Year : 2014-15
Bhumishree Consultancy & Vs. ITO, Ward 1(1), Marketing Pvt Ltd., 725-P, Bhubaneswar. Kartik Palace Lane 6, B M Nagar, Gandamunda, Bhubaneswar. PAN/GIR No.AADCB 6540 L (Appellant) .. ( Respondent)
Assessee by : Shri Natabar Panda, AR Revenue by : Shri A.K.Dutta, DR
Date of Hearing : 22/02/ 2019 Date of Pronouncement : 22/02/ 2019
O R D E R This is an appeal filed by the assessee against the order of
the Commissioner of Income Tax(Appeals)-1, Bhubaneswar dated
20.4.2018 for the assessment year 2014-15.
Ground Nos.1 & 4 of appeal are general in nature and
hence, requires no separation adjudication by me.
In Ground No.2 & 3, the grievance of the assessee is that
the CIT(A) is not justified in confirming the addition of
Rs.16,66,206/- towards employees’ contribution and ESIC made
by the Assessing Officer.
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The Assessing Officer has disallowed Rs.16,66,206/-
u/s.36(1)(va) r.w.s. 2(24)(x) of the Act on account of employees
contribution towards EPF and ESIC not deposited within the due
date, which was confirmed in appeal by the CIT(A).
Before me, ld Counsel for the assessee submitted that the
issue is covered by the various orders of Hon’ble High Courts and
the Tribunal including the decision of Hon’ble Karnataka High
Court in the case of M/s. Essae Teraoka Pvt Ltd. Vs. DCIT in ITA
No.480/2013 order dated 4th February, 2014 and order of the
Cuttack Bench of the Tribunal in the case of M/s. Kalinga Institute
of Training vs ITO in ITA Nos.435 & 436/CTK/2017 for the
assessment year 2011-12 and 2012-13 order dated 28.12.2017.
Replying to above, ld D.R. strongly supported the orders of
the lower authorities and placed reliance on the decision of
Hon’ble Gujarat High Court in the case of Gujarat State Road
Transport Corporation, 366 ITR 170 (Guj).
On a careful consideration of above submission of both the
parties, I am of the considered opinion that there are contrary
decisions of various Hon’ble High Courts on this issue. However,
the judgment of Hon’ble Rajasthan High Court in the case of
Rajasthan Beverage Corporation Ltd holds good as the SLP filed by
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the department has been dismissed by Hon’ble Supreme in the
case of Pr. CIT vs Rajasthan Beverage Corporation Ltd., (2017)
84 Taxman. Com 185 (SC), wherein, it has been held as under:
“Section 43B, read with section 36(1)(va), of the Income Tax Act, 1961-Business disallowance-certain deduction to be allowed only on `actual payment (PF & ESI construction)- High Court by the 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. Reverting to the facts of the present case, ld D.R. has
alleged that the assessee did not deposit the EPF and ESIC
contribution within the due date and the same was deposited after
the prescribed due date. Therefore, the Assessing Officer was
right in making the addition and the CIT(A) was correct in
upholding the same.
However, in all fairness, ld D.R. did not dispute the fact for
assessment year 2014-15, the date of filing of return was
30.11.2014 and the impugned deposit of EPF/ESIC contributions
have been made by the assessee prior to filing of return of income
under section 139(1) of the Act.
Considering the above facts, I am of the considered view
that the ratio of the decision of Hon’ble Supreme Court in the case
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of Rajasthan Beverage Corporation Ltd., (supra), is applicable to
the present case, which is in favour of the assessee. Therefore,
following the same, I delete the addition of Rs.16,66,206/- being
EPF and ESIC contribution and allow the grounds of appeal of the
assessee.
In the result, appeal of the assessee is allowed
Order pronounced on 22/02/2019. Sd/- (Chandra Mohan Garg) JUDICIALMEMBER Cuttack; Dated 22/02/209 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : Bhumishree Consultancy & Marketing Pvt Ltd., 725-P, Kartik Palace Lane 6, B M Nagar, Gandamunda, Bhubaneswar. 2. ITO, Ward 1(1), The Respondent. Bhubaneswar 3. The CIT(A)-1, Bhubaneswar 4. Pr.CIT- 1, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// By order
Sr. Pvt. Secretary, ITAT, Cuttack
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