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Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK
Before: S/SHRI N.S SAINI & PAVAN KUMAR GADALE
1 ITA No . 299/CT K/ 2017 Asse ssment Year : 20 10- 201 1
IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK
BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER
ITA No. 299/CTK/2017 Assessment Year : 2010-2011
Epari Sadashiv Pvt Ltd., Plot Vs. DCIT, Corporate Circle1(1), No.78, Janpath, Unit-III, Bhubaneswar Kharavel Nagar, Bhubaneswar PAN/GIR No.AABCE 6450 A (Appellant) .. ( Respondent)
Assessee by : None Revenue by : Shri S.K.Pradhan, DR
Date of Hearing : 10/05/ 2018 Date of Pronouncement : 14 /05/ 2018
O R D E R Per N.S.Saini, AM This is an appeal filed by the assessee against the order of the
CIT(A)- 1,Bhubaneswar dated 19.6.2017 for the assessment year 2010-
2011.
The sole issue involved in this appeal is that the CIT(A) erred in
confirming the disallowance of employees contribution to EPF of
Rs.4,56,160/- and ESI of Rs.65,167/- deposited before the due date of
filing of return u/s.36(1)(va) read with section 2(24)(x) of the Act.
None appeared on behalf of the assessee when the case was called
for hearing. Since the appeal can be decided exparte qua the assessee,
2 ITA No . 299/CT K/ 2017 Asse ssment Year : 20 10- 201 1
we proceed to dispose of the same after hearing ld D.R. and on the basis
of materials available on record.
The Assessing Officer found that the assessee has not deposited the
employee’s contribution to provident fund of Rs.4,65,160/- and ESI of
Rs.65,167/-, which was deposited beyond the period prescribed in the
relevant statute as under:
EPF
Month Employees' share Date of deposit April, 2009 33,134 27.05.2009 May, 2009 40,076 06.07.2009' June, 2009 39,086 25.07.2009 July, 2009 37,742 11.09.2009 August, 2009 41,052 25.09.2009 September, 2009 47,315 22.10.2009 October, 2009 49,839 25.11.2009 November, 2009 42,292 29.12.2009 December, 2009 43,043 25.01.2010 February, 2010 46,401 22.03.2010 March, 2010 45,180 21.04.2010/ Total 4,65,160 ESIC
Month Employees' share Date of deposit
April, 2009 5,002 27.05.2009 May, 2009 5,704 06.07.2009 June, 2009 5,565 25.07.2009 July, 2009 4,945 01.09.2009 August, 2009 5,625 25.09.2009 September, 2009 6,532 22.10.2009 October, 2009 6,907 25.11.2009 November, 2009 5,803 29.12.2009 January, 2010 6,465 20.02.2010 February, 2010 6,400 23.03.2010 March, 2010 6,219 21.04.2010 Total 65,167
On appeal, the CIT(A) confirmed the action of the Assessing Officer.
3 ITA No . 299/CT K/ 2017 Asse ssment Year : 20 10- 201 1
After hearing ld D.R. and perusing the materials available on record,
we find that the Assessing Officer disallowed the payment on the ground
that the employee’s contributions to EPF and ESI have not been deposited
within due date, prescribed in the respective Acts, which was confirmed in
appeal by the CIT(A). We find from a perusal of the assessment order
that the amount has been deposited by the assessee before the due date
of filing the return of income u/s.139(1) of the Act.
We find that the Hon’ble Supreme Court in the case of Pr. CIT vs
Rajasthan Beverage Corporation Ltd.(supra), has held as under:
“Section 43B, read with section 36(1)(va), of the Income Tax Act, 1961-Business disallowance-certain deduction to be allowed only on `actual payment (PF & ESI construction)- High Court by the impugned order held that amount claimed on payment of PF and ESI having been deposited on or before due date of filing of returns, same could not be disallowed under section 43B or under section 36(1)(va)- Whether SLP against said impugned order was to be dismissed-Held yes (para 2) in favour of assessee. 8. Respectfully following the decision of Hon’ble Supreme Court in the
case of Rajasthan Beverage Corporation Ltd(supra), we hold that the
learned CIT(A) was not justified in sustaining the aforesaid disallowance
representing the employees contribution to EPF and ESIC, where the
amounts were admittedly paid before the due date u/s 139(1). We,
therefore, set aside the orders of the lower authorities and direct the
Assessing officer to delete the addition of Rs.4,65,160/- and Rs.65,167/-
and allow the ground of appeal of the assessee.
4 ITA No . 299/CT K/ 2017 Asse ssment Year : 20 10- 201 1
In the result, appeal filed by the assessee is allowed.
Order pronounced on 14 /05/2018.
Sd/- sd/- (Pavan Kumar Gadale) (N.S Saini) JUDICIALMEMBER ACCOUNTANT MEMBER Cuttack; Dated 14 /05/2018 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : Epari Sadashiv Pvt Ltd., Plot No.78, Janpath, Unit-III, Kharavel Nagar, Bhubaneswar 2. The Respondent. DCIT, Corporate Circle1(1), Bhubaneswar 3. The CIT(A)-1, Bhubaneswar 4. Pr.CIT-1, Bhubaneswar BY ORDER, 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// SR.PRIVATE SECRETARY ITAT, Cuttack