Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR
Before: SHRI ANIL CHATURVEDI, AM & SHRI PARTHA SARATHI CHAUDHURY, JM
आयकर अपीलीय अधधकरण न्यायपीठ रायपुर में । IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI PARTHA SARATHI CHAUDHURY, JM आयकर अपील सं. / ITA Nos. 213 & 214/RPR/2017 धनधाारण वषा / Assessment Years: 2013-14 & 2014-15 Bhilai Prashikshu Kalyan Samiti, Qr. No.10B, Street-4, Sector-2, Bhilai, Dist. Durg ( C.G.) PAN : AABTB0857H .......अपीलाथी / Appellant बनाम / V/s.
The Deputy Commissioner of Income Tax 1(1), Bhilai, Dist. Durg (C.G.) ……प्रत्यथी / Respondent Assessee by : Shri S.R. Rao Revenue by : Shri R. Namdev
सुनवाई की तारीख / Date of Hearing : 09.05.2019 घोषणा की तारीख / Date of Pronouncement : 09.05.2019 आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM : These two appeals preferred by the assessee emanates from the order of the Ld. CIT(Appeals)-II, Raipur (C.G.) dated 26.04.2017 for the
2 ITA Nos.213 & 214 /RPR/2017 A.Ys.2013-14 & 2014-15
assessment years 2013-14 & 2014-15 as per following grounds of appeal on record:
“1. The Ld. CIT(Appeals) has erred in confirming disallowance of Rs.38,24,809/- made u/s.2(24)(x) r.w.s. 36(1)(va) out of payment made for EPF and ESIC pertaining to employees contribution without considering the facts and circumstances of the case and decisions of various judicial authorities including the jurisdictional Bench of Hon’ble ITAT. 2. The order of Ld. CIT (Appeals) is bad in law and on facts. 3. The appellant reserves the right to add, alter, amend, omit all or any of the grounds of appeal with permission of the Hon’ble appellate authority.”
These two appeals were heard together. Since issues common and facts are similar, these appeals are being disposed of vide this consolidated order. For the sake of convenience, we shall take ITA No.213/RPR/2017 as lead case. ITA No.213/RPR/2017 A.Y.2013-14
The brief facts in this case are that the assessee is a registered society engaged in the activity of executing cleaning contracts for Bhilai Steel Plants and Municipal Corporation Bhilai. The return of income for the year 2013-14 was filed on 31.03.2015 declaring total at Rs. 3580020/- . Assessment was completed u/s 143(3) wherein the total income was assessed at Rs. 7404830/-. The addition relates to disallowance of Rs.
3 ITA Nos.213 & 214 /RPR/2017 A.Ys.2013-14 & 2014-15
3824809/- on account of unpaid employees contribution towards EPF and ESIC made u/s 36(1)(va) r.w.s. 2(24)(x) of the Act.
At the time of hearing, the Ld. AR of the assessee has placed reliance on the ratio laid down by the Hon’ble Supreme Court of India in the case of Principal Commissioner of Income Tax, Jaipur Vs. Rajasthan State Beverages Corporation Ltd. (SC) 2017 ITL 1644 and copy of which has been filed on record. The Ld. AR of the assessee further submitted that the assessee filed return of income for A.Yr. 2014-15 declaring total income at Rs.81,27,520/- and in assessment made u/s. 143(3) of the Income-tax Act, 1961, total income was assessed at Rs. 1,26,23,470/- after making disallowance of Rs.44,95,952/- u/s.2(24)(x) r.w.s. 36(l)(va) of the Act out of payment made for EPF and ESIC pertaining to employees contribution and payment of employees contribution to EPF and ESIC, though made after due date of payment under the relevant legislations, was made before the due date for filing of Income-tax return u/s. 139(1) of the Act. It was submitted in first appeal that in view of order of Hon’ble jurisdictional Tribunal in the case of ACIT vs. Vindhya Vasini Industries Ld. in IT Appeal No. 58/BIL/2012, no disallowance was called for. The Ld. AR of the assessee further submitted that SLP filed by the Department in the case of Principal Commissioner of Income Tax, Jaipur Vs. Rajasthan State
4 ITA Nos.213 & 214 /RPR/2017 A.Ys.2013-14 & 2014-15
Beverages Corporation Ltd. (SC) 2017 ITL 1644 was dismissed and hence, the issue has attained finality and no more remains res-integra.
We have perused the case records and heard the rival contentions. We have also considered the ratio laid down by the Hon’ble Supreme Court of India in the case of Principal Commissioner of Income Tax, Jaipur Vs. Rajasthan State Beverages Corporation Ltd. (SC) 2017 ITL 1644 wherein it has been held that certain deductions to be allowed only on actual payment (PF & ESI contribution). It has further held that amount claimed on payment of PF and ESI having been deposited on or before due date of filing returns, same could not be disallowed under section 43B or under section 36(1)(va) of the Act.
Respectfully following the above mentioned ratio as laid down by the Hon’ble Supreme Court of India, we are of the view that no disallowance is called for in the instant case of the assessee u/s.2(24)(x) r.w.s.36 (1)(va) out of payment made for EPF and ESIC pertaining to employees. Accordingly, we set aside the order of the Ld. CIT(Appeals) and appeal of the assessee is allowed.
In the result, appeal of the assessee in ITA No.213/RPR/2017 is allowed.
5 ITA Nos.213 & 214 /RPR/2017 A.Ys.2013-14 & 2014-15
Since facts are common and issues similar in ITA No.214/RPR/2017, our decision rendered in ITA No.213/RPR/2017 shall apply directly to ITA No.214/RPR/2017. Therefore, in this case also, we set aside the order of the Ld. CIT(Appeals) and appeal of the assessee is allowed.
In the combined result, both the appeals of the assessee for the assessment years 2013-14 and 2014-15 are allowed.
Order pronounced on 09th day of May, 2019. Sd/- Sd/- ANIL CHATURVEDI PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER रायपुर/ RAIPUR ; ददनांक / Dated : 09th May, 2019. SB आदेश की प्रधतधलधप अग्रेधषत / Copy of the Order forwarded to : 1. अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT (Appeals)-II, Raipur. 4. The Pr. CIT-II, Raipur. 5. धवभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, रायपुर बेंच, रायपुर / DR, ITAT, Raipur Bench, Raipur. गार्ा फ़ाइल / Guard File. 6.
// True Copy // आदेशानुसार / BY ORDER,
धनजी सधचव / Private Secretary आयकर अपीलीय अधधकरण, रायपुर / ITAT, Raipur.
6 ITA Nos.213 & 214 /RPR/2017 A.Ys.2013-14 & 2014-15
Date 1 Draft dictated on 09.05.2019 Sr.PS/PS 2 Draft placed before author 09.05.2019 Sr.PS/PS 3 Draft proposed and placed JM/AM before the second Member 4 Draft discussed/approved by AM/JM second Member
7 ITA Nos.213 & 214 /RPR/2017 A.Ys.2013-14 & 2014-15
5 Approved draft comes to the Sr.PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr.PS/PS 7 Date of uploading of order Sr.PS/PS 8 File sent to Bench Clerk Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order