THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-4(1), VISAKHAPATNAM vs. KIMIDI SURAPU NAIDU JUTE TWINE INDUSTRIES PRIVATE LIMITED, SRIKAKULAM

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ITA 416/VIZ/2019Status: DisposedITAT Visakhapatnam30 October 2019AY 2015-165 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that employee's PF contributions are deductible if remitted before the due date of filing the return of income. This decision aligns with previous rulings of the Tribunal and High Courts.

What were the facts?

The Assessing Officer disallowed the deduction for employee's PF contributions remitted after the due date under the PF Act but before the return filing due date. The CIT(A) allowed the assessee's appeal, following previous decisions.

What were the issues?

Whether employee's PF contributions remitted after the due date under the PF Act but before the return filing due date are eligible for deduction.

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, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI V. DURGA RAO& SHRI D.S. SUNDER SINGH

For Appellant: DR प्रत्यधथी की ओर से /
Hearing: 26.09.2019Pronounced: 30.10.2019

Per Shri D.S.Sunder Singh, Accountant Member : Delay : There was a delay of 13 days in filing the appeal by the revenue. The revenue filed petition for condonation of delay, stating that the delay was due to administrative reasons and requested to condone the delay. After going through the condonation petition filed, we observe that there is

2 I.T.A. No.416/Viz/2019, A.Y.2015-16 Sri Kimidi Surapu Naidu Jute Twine Industries Pvt. Ltd, Srikakulam sufficient cause for the delay in filing the appeal, hence, we condone the delay and admit the appeal. This appeal is filed by the revenue against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], in Appeal No.41/2018- 19/ACIT, Circle-4(1)/VSKP/CIT(A)-11/2018-19 dated 19.02.2019 for the Assessment Year (A.Y.) 2015-16.

2.

In this case, the assessment was completed u/s 143(3) by an order dated 18.12.2017 and in the assessment, the Assessing Officer (AO) made the addition of Rs.4,84,346/- u/s 36(1)(va) r.w.s.2(24)(x) of the Income Tax Act, 1961 (in short ‘Act’). The assessee has collected the contributions towards Provident Fund from the employees, but not remitted to the Provident Fund account before the due date of payment as specified under the Provident Fund Act. However, the said contributions were remitted to the concerned account before the due date of filing the return of income. Hence, the AO made the addition u/s 2(24)(x) r.w.s.36(1)(va) of the Act.

3.

Against the order of the AO, the assessee went on appeal before the CIT(A) and the Ld.CIT(A) allowed the appeal of the assessee following the decision of assessee’s own case for the A.Y.2012-13 & 2013-14 where the

3 I.T.A. No.416/Viz/2019, A.Y.2015-16 Sri Kimidi Surapu Naidu Jute Twine Industries Pvt. Ltd, Srikakulam decision in the case of M/s Eastern Power Distribution Company of AP Ltd. in I.T.A. No.609/Viz/2014 dated 29.07.2016 was followed.

4.

Against the order of the Ld.CIT(A), the department has filed appeal before this Tribunal.

5.

We have heard both the parties and perused the material placed on record. This Tribunal has taken a view that employees contribution to PF required to be allowed as deduction, if the same is remitted to the employees provident fund account before the due date of filing the return of income, in M/s Eastern Power Distribution Company of A.P. Ltd in I.T.A. No.374/Viz/2017 dated 20.09.2017 and also in the case of M/s Bharat Heavy Plates and Vessels Ltd., Visakhapatnam in I.T.A.No.457/Viz/2019 dated 30.09.2019, following the decision of Hon’ble Karnataka High Court in the case of Essae Teroka (P) Ltd. (supra). For the sake of clarity and convenience, we extract relevant part of the order of the ITAT in the case of M/s Bharat Heavy Plates and Vessels Ltd., Visakhapatnam (supra) which reads as under : “5. We have heard both the parties and perused the material placed on record. This Tribunal has taken a view that deduction of employees contribution required to be allowed if the same is remitted to the employees provident fund account before the due date for filing the return of income in the case of M/s Eastern Power Distribution Company of A.P. Ltd in I.T.A. No.374/Viz/2017 dated 20.09.2017 and also in the case of M/s Miracle

4 I.T.A. No.416/Viz/2019, A.Y.2015-16 Sri Kimidi Surapu Naidu Jute Twine Industries Pvt. Ltd, Srikakulam

Software Systems (India) Pvt. Ltd. vide I.T.A. No.150/Viz/2019 dated 07.08.2019,following the decision of Hon’ble Karnataka High Court in the case of Essae Teroka (P) Ltd. (supra), For the sake of clarity and convenience, we extract relevant part of the order of the ITAT in the case of M/s Miracle Software Systems (India) Pvt. Ltd. (supra) which reads as under : “9. We have heard both the parties and find that the assessee has remitted the Employees contribution to P.F beyond the due date specified under P.F Act, but before the due date for filing the return of income. This tribunal has consistently taken the view that the deduction is to be allowed even in case of employees contribution is paid before the due date of filing the return of income. The Tribunal has followed the decision of Hon’ble Karnataka High Court in the case of ESSAE Teraoka Pvt Ltd. Vs. DCIT [366 ITR 408] and the decision of ITAT, Hyderabad in the case of Tetra Soft India Pvt. Td. Vs. ACIT (2015) (40 ITR Tribunal 470) while delivering the above ruling. Further this Tribunal on identical facts decided the issue in favour of the assessee in it’s order in I.T.A No.485/Viz/2018 dated 25.01.2019. Since the Ld.CIT(A) allowed the appeal of the assessee following the order of this Tribunal, we find no reason to interfere with the order of the CIT(A), accordingly the revenue’s appeal in ground No.5 to 8 are dismissed.” 5.1. Respectfully following the view taken by this Tribunal, we uphold the order of the Ld.CIT(A) and dismiss the appeal of the revenue.

6.

In the result, appeal of the revenue is dismissed.

Order pronounced in the open court on 30th October, 2019

Sd/- Sd/- (िी.दुगाा राि) (धड.एस. सुन्दर धसंह) (V. DURGA RAO) (D.S. SUNDER SINGH) न्याधयक सदस्य/JUDICIAL MEMBER लेखा सदस्य/ACCOUNTANT MEMBER नवशधखधपटणम /Visakhapatnam नदनधंक /Dated : 30.10.2019 L.Rama, SPS

5 I.T.A. No.416/Viz/2019, A.Y.2015-16 Sri Kimidi Surapu Naidu Jute Twine Industries Pvt. Ltd, Srikakulam आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. रधजस्व/The Revenue – Asst. Commissioner of Income Tax, Circle-4(1), Visakhapatnam 2. ननधधाऩरती/ The Assessee - M/s Sri Kimidi Surapu Naidu Jute Twine Industries Pvt. Ltd., Regidi Mandal, Amadalavalasa, Srikakulam 3. The Pr.Commissioner of Income Tax(Central), Visakhapatnam 4. The Commissioner of Income Tax (Appeals)-11, Hyderabad 5. तिभागीय प्रतितिति, आयकर अिीिीय अतिकरण, तिशाखािटणम/DR, ITAT, Visakhapatnam 6.गार्ड फ़ाईि / Guard file

आदेशािुसार / BY ORDER // True Copy //

Sr. Private Secretary ITAT, Visakhapatnam

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