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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI V. DURGA RAO & SHRI D.S. SUNDER SINGH
Per Shri D.S.Sunder Singh, Accountant Member : This appeal is filed by the revenue against the order of the Commissioner of Income Tax (Appeals) [CIT(A)]-1, Visakhapatnam in
2 I.T.A. No.457/Viz/2019, A.Y.2012-13 M/s Bharat Heavy Plate & Vessels Ltd., Visakhapatnam
ITA.No.1154/2014-15, Vsp/2018-19 dated 27.11.2018 for the Assessment Year (A.Y.) 2012-13.
In this case, the assessment was completed u/s 143(3) by an order dated 06.02.2015 and in the assessment, the Assessing Officer (AO) made the addition of Rs.69,40,196/- 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.
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 Hon’ble Karnataka High Court in the case of Essae Teroka (P) Ltd., Vs.DCIT (2014) 366 ITR 408. The Ld.CIT(A) also relied on the following decisions : (i) CIT Vs. Kichha Sugar Company Ltd. (2013) 356 ITR 0351 (Uttarakhand)
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(ii) CIT Vs. Alom Extrusions Ltd. (319 ITR 306)-227 CTR (SC) 417 (2009) (iii) SC in CIT Vs. Vinay Cement Ltd. (2009) 313 ITR (ST.)1 (iv) CIT Vs. Vijay Shree Ltd. 43 Taxman 396 (Calcutta hc) (v) CIT Vs. Nexus Computers Pvt. Ltd. 313 ITR 144 4. Against the order of the Ld.CIT(A), the department has filed appeal before this Tribunal.
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 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 :
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“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, if the same 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.
In the result, appeal of the revenue is dismissed. Order pronounced in the open court on 30th September 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 : 30.09.2019 L.Rama, SPS
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आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee – M/s Bharat Heavy Plate & Vessels Ltd., D.No.10-3, Administrative Building, Natayyapalem, Visakhapatnam 2. रधजस्व/The Revenue - Dy.Commissioner of Income Tax, Circle 1(1), Visakhapatnam 3. The Pr.Commissioner of Income Tax-1, Visakhapatnam 4. The Commissioner of Income-Tax (Appeals)-1, Visakhapatnam 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