DEPUTY COMMISSIONER OF INCOME TAX, JAIPUR vs. M/S RAJASTHAN MEDICAL SERVICES CORPORATION, JAIPUR

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ITA 332/JPR/2018Status: DisposedITAT Jaipur03 May 2018AY 2014-153 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the disallowance made by the AO was unjustified. It relied on the jurisdictional High Court's decisions which held that such contributions, if paid before the due date of filing the return of income, are allowable.

What were the facts?

The Assessing Officer (AO) disallowed a sum of Rs. 39,33,410/- for delayed deposit of employees' contribution to PF and ESI. The assessee had paid these contributions after the due dates prescribed by the respective Acts but before the due date for filing the return of income.

What were the issues?

Whether employees' contribution to PF & ESI deposited beyond the prescribed time limit but before the due date of filing the return of income is allowable as a deduction. Whether Section 43B or Section 36(1)(va) r.w.s. 2(24)(x) of the IT Act governs such contributions.

Which sections of the Income-tax Act were involved?

Section 43B,Section 36(1)(va),Section 2(24)(x)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR

Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 332/JP/2018

PER VIJAY PAL RAO, J.M.

This appeal by the revenue is directed against the order dated 26.12.2017 of

ld. CIT (A)-2, Jaipur for the assessment year 2014-15. The revenue has raised the

following grounds :-

“ i) Whether on the facts and in the circumstances of the case and in law the ld. CIT (A) is justified in deleting the disallowance of Rs. 39,33,410/- made by the A.O. on account of depositing the employees’ contribution of PF & ESI beyond the prescribed time limit provided in respective Acts.

ii) Whether on the facts and in the circumstances of the case and in law the ld. CIT (A) is justified in holding that employees’ contribution to PF & ESI are governed by the provision of section 43B and not by section 36(1)(va) r.w.s. 2(24)(x) of the I.T. Act.

iii) The appellant craves its rights to add, amend or alter any of the grounds on or before the hearing.”

2 ITA No. 332/JP/2018 M/s. Rajasthan Medical Services Corpn. Ltd., Jaipur.

2.

The only issue in this appeal is regarding disallowance made by the AO on

account of depositing employees’ contribution of PF and ESI beyond the prescribed

limitation provided in the respective Acts, however, paid before the due date of filing

the return of income.

3.

We have heard the ld. D/R as well as the ld. A/R and carefully perused the

relevant material on record. At the outset, we note that this issue is covered by the

decision of Hon’ble Jurisdictional High Court in the case of CIT vs. State Bank of

Bikaner & Jaipur, 363 ITR 70 (Raj.) as well as the decision in the case of CIT vs.

Jaipur Vidhyut Vithran Nigam Ltd., 363 ITR 307 (Raj.). In view of the above binding

precedent of Hon’ble Jurisdictional High Court, we do not find any error or illegality

in the impugned order of ld. CIT (A).

4.

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

Order is pronounced in the open court on 03/05/2018.

Sd/- Sd/- (foØe flag ;kno) (fot; iky jkWo ½ (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member

Jaipur Dated:- 03/05/2018. Das/ आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

1.

The Appellant- The DCIT Circle-6, Jaipur. 2. The Respondent –M/s.Rajasthan Medical Services Corpn. Ltd., Jaipur. 3. The CIT(A). 4. The CIT, 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 332/JP/2018) vkns'kkuqlkj@ By order,

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत

3 ITA No. 332/JP/2018 M/s. Rajasthan Medical Services Corpn. Ltd., Jaipur.

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