M/S NEO SACK LTD. vs. THE ACIT 4(2),

per various decisions and as accepted by Hon'ble ITAt,

Indore Bench in the appeals of the assessee company

for the assessment years 1993-94 to 96-97 after

detailed discussion. Following the decision of the

Hon'ble ITAT, this claim of the assessee is allowed.”

The learned Commissioner of Income Tax (Appeals) in the

same fashion has dealt with other grounds also and the

details of the facts as well as the basis of deciding the

issues is not properly emanating from the appellate order.

In some way we can say that the finding of the learned

Commissioner of Income Tax (Appeals) is cryptic and does

not deal properly with the issues involved so much so that

the citations of the judgments relied upon by him have not

been given. Further there is none at the assessee’s behest

to provide us necessary details which can enable us to

adjudicate the issues in proper way. We, therefore, in the

interest of justice and fair play, direct the learned

Commissioner of Income Tax (Appeals) to decide de novo all

the issues involved in these three appeals bearing ITA Nos.

574/Ind/2002, 682/Ind/2003 and 683/Ind/2003 after

considering each and every aspect of the matter including

the citations of the judgment (if any) and after providing

adequate opportunity of hearing should pass an elaborate

and speaking order. We order accordingly and allow all the

three appeals of the revenue for statistical purposes.

ITA No. 395/Ind/2007 (A.Y. 2003-04)

grounds :-

“1. On the facts and in the circumstances of the case,

ld. CIT(A) has erred in allowing the relief in respect

of belated payment of P.F. Rs.18,38,452/- and ESI

Rs.4,42,221/- holding that the said amounts have

been paid within the stipulated time u/s 139(1) of

the Income tax Act.

ld. CIT(A) has erred in applying the amendment to

proviso to section 43B made by the Finance Act,

2003 retrospectively inspite of the facts that the

amendment was made w.er.f. 1.04.2004.

ld. CIT(A) has erred in deleting the addition of

Rs.4,26,598/- made by the A.O. as interest income

being not charged by the assessee on the loan

advanced to Elixier Impex (P) Ltd.”

material available on record. So far as issues raised in

Ground no. 1 & 2 relating to PF and ESIC payments of

Rs.18,38,522/- and Rs. 4,42,271/-, respectively are

concerned, we find that while granting relief to the

assessee, the learned Commissioner of Income Tax

(Appeals) has given the following findings :-

“ That Hon'ble ITAT Indore Bench vide its order

dated 29.08.2005 (Appeal No. ITA No. 390/Ind/99) in

the case of JCIT vs. Shree Balaji Industries has dealt

with the omission of the said second proviso and held

that the said amendment is retrospective in nature and

accordingly contribution ton PF is to be allowed

deduction if the said sum is actually paid by the

assessee on or before the due date of filing of return as

stipulated in section 139(1) of the Income Tax Act.

That Special Bench in the case of Quality Milk

Foods vs. ACIT report in 284 ITR 89 (AT)(SB) (Chennai)

has confirmed the above view. I have considered the

argument put forth by the learned learned AR before me

in detail and also go through the decision relied on by

him. I find sufficient force in arguments of the assessee.

Since in the present case all contribution towards PF

and ESI were made by the assessee on or before the

due dates of the filing of the return of income. Thus, in

view of amended provisions of law and after

considering the decisions of ITAT, Indore Bench the

claim of the assessee is allowable. The A.O. is therefore

directed to allow the claim of the assessee in respect of

PF and ESIC payments of Rs. 18,38,522/- and

Rs.4,42,271/- respectively.”

above findings of the learned Commissioner of Income Tax

(Appeals). We, therefore, confirm the findings of the

learned Commissioner of Income Tax (Appeals). In this

view of the matter, this ground of appeal of the revenue

stands dismissed.

has erred in deleting the addition of Rs.4,26,598/- made by

the A.O. as interest income being not charged by the

assessee on the loan advanced to Elixier Impex (P) Ltd. is 28

concerned, we find that the learned Commissioner of

Income Tax (Appeals) has granted relief to the assessee by

observing as under :-

“ As regards Elixir Impex Pvt. Ltd. in the present

assessment year assessee has furnished complete

details i.e. copy of account for the asst. year 2003-04

and 04-05 and bills of raw materials issued by the said

party. That after perusal of the above details it is

beyond doubt that it is a trade account thus no interest

is chargeable. The appellant has filed copy of balance

sheet where the same is reflected as trade advance.

That after considering the facts of the case and

submissions made, the said disallowance of interest of

Rs. 4,26,598/- made on the amount advanced to Elixir

Impex Pvt. Ltd. is deleted. Thus the assessee is allowed

relief of Rs.4,26,598/-.”

material available on record. We find that the above finding

of the learned Commissioner of Income Tax (Appeals)

shows that the alleged account of Elixir Impex Pvt. Ltd. is a

trade advance account and, therefore, the assessee was not

liable to charge any interest on the same. Before us, the

revenue has utterly failed to bring any corroborative

material on record to rebut the above finding of the learned

Commissioner of Income Tax (Appeals). We, therefore, find

no flaw in the order of the learned Commissioner of Income

Tax (Appeals) and accordingly confirm the same.

413/Ind/2007 and CO Nos. 75 & 76/Ind/2009 are

dismissed being barred by limitation, ITA Nos.

262/Ind/2008 and 263/Ind/2008 are dismissed for non-

prosecution, revenue’s appeals bearing Nos.

574/Ind/2002, 582/Ind/2003 and 683/Ind/2003 are

allowed for statistical purposes and revenue’s appeal ITA

No. 395/Ind/2007 is allowed.

Order pronounced in open Court on 27th June, 2018.

Sd/- sd/-

( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER June, 2018 Dn/- Copy to: The Appellant/Respondent/CIT concerned/CIT(A) concerned/ DR, ITAT, Indore/Guard file. By order Private Secretary/DDO, Indore