SHRI KHODIYAR FABRICATORS AND TECHNOLOGIES PVT. LTD.,,SURAT vs. THE INCOME TAX OFFICER, WARD-2(1)(2),, SURAT

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आयकर अपील�य अ�धकरण,सुरत �यायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O. P. MEENA, ACCOUNTANT MEMBER I.T.A. No.1128/AHD/2017: Assessment Year: 2013-14 M/s. Shree Khodiyar Fabricators and Vs. Income Tax Officer, Technologies Pvt. Ltd. Ward-2, Surat 13/B, Darpan Row House B/h Nutan Row House , Palanpur Jakat Naka , Surat 395009 PAN:AAMCS5796E Appellant Respondent

Assessee by None Revenue by Shri Prasoon Kabra, Sr. D.R. Date of hearing 15.05.2019 Date of pronouncement 15.05.2019

ORDER PER O. P. MEENA, AM 1. This appeal filed by the assessee is directed against the order of learned Commissioner of Income-tax (Appeals)-2, Surat [in short CIT (A)] dated 13.02.2017 pertaining to assessment year 2013-14. 2. The assessee has filed an adjournment application and same was rejected as the issue in appeal is covered against the assessee by the decision of Hon`ble Jurisdictional High Court of Gujarat. 3. The sole ground of appeal relates to confirming the disallowance of

Rs.19,48,965/- pertaining payments of PF/ESI paid beyond the due date prescribed

under the relevant statutes.

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that same were paid beyond during date prescribed under the respective statutes. In

doing so the CIT (A) has placed reliance on the decision of Hon’ble Gujarat High Court

in the case of CIT v. Gujarat State Road Transport Corporation [2014] 366 ITR 170 (Guj)

: 223 Taxman 398 : [2014] 41 taxmann.com 100 (2014) (1) TML 502 -Guj-HC.

appeared for the assessee.

by Hon’ble jurisdictional High Court’s judgment in the case of CIT vs. Gujarat State

Road Transport Corporation, 366 ITR 170 (Guj.), wherein it is categorically held that

in the case of delayed deposit of employees contribution to PF, the same will

not be deductible in computing income under section 28 of the Act.

record. We find that the issue is squarely covered against the assessee by the decision

of Hon’ble Gujarat High Court in the case of CIT v. Gujarat State Road Transport

Corporation [2014] 366 ITR 170 (Guj) : 223 Taxman 398 : [2014] 41 taxmann.com 100

(2014) (1) TML 502 -Guj-HC, wherein it was held that section 43B does not apply to

employees contribution. Only section 2 (24) (x) read with section 36(1)(va) is applicable

and therefore, employees contribution is disallowed if not paid within due dates

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prescribed under relevant Provident Fund /ESI Act. We are, therefore, of the

considered opinion that there is no mistake in the orders of lower authorities in making

disallowance in the light of the ratio laid down by the Hon’ble Gujarat High Court in

the above case (supra). The law so laid down by the Hon’ble jurisdictional High Court

is binding on us. In view of above discussion, this grounds of appeal is therefore,

dismissed.