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Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK
Before: S/SHRI N.S SAINI & PAVAN KUMAR GADALE
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.257/CTK/2017 Assessment Year : 2012-2013
The Orissa State Co- Vs. DCIT, Circle 4(1), operative Milk Producers Bhubaneswar. Federation Ltd., Plot No.D-2, Sahid Nagar, Bhubaneswar. PAN/GIR No.AABTT 3220 G (Appellant) .. ( Respondent)
Assessee by : Shri B.K.Mohapatra, AR Revenue by : Shri Piyush Kolhe, , CIT DR
Date of Hearing : 20/03/ 2018 Date of Pronouncement : /03/ 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)-2, Bhubaneswar dated 6th March, 2017 for the assessment year
2012-13.
The sole issue involved in this appeal is that the CIT(A) erred in
sustaining the addition of Rs.11,56,756/- u/s.2(24)(x) r.w.s 36(1) of the
I.T.Act, 1961 in respect of employees contribution to PF.
The facts of the case are that the Assessing Officer found that the
assessee has not deposited an amount of Rs.1,36,58,901/- towards
employees contribution to PF within the prescribed under the PF Act and,
therefore, made addition to the income of the assessee.
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On appeal, the CIT(A) found that out of Rs.1,36,58,901/-, an
amount of Rs.1,25,02,145/- has been deposited within the grace period
allowed by the Employees Provident Fund Act and, therefore, he deleted
the addition of Rs.1,25,02,145/-. However, the CIT(A) sustained the
addition of Rs.11,56,756/- being the amount paid beyond the due date.
Before us, ld A.R. submitted that as the employees contribution is
deposited before the due date of filing return of income u/s.139(1),
therefore, same deserves to be allowed.
Ld D.R. supported the order of the CIT(A).
We have heard the rival submissions, perused the orders of lower
authorities and materials available on record. In the instant case, the
Assessing Officer has disallowed Rs.1,36,58,901/- u/s.2(24)(x) r.w.s
36(1)(va) of the Act towards employees contributions to PF as the same
were not deposited within the due date prescribed under the Act.
On appeal, the CIT(A) found that except an amount of
Rs.11,56,756/- , other payments have been deposited within the grace
period and, accordingly, sustained the addition of Rs.11,56,756/-.
On perusal of assessment order, we find that the due date for
payment of employees’ contribution to PF for the month of march,2012
was 15.4.2012 and the assessee has deposited the amount on 6.6.2012.
Hence, the amount is deposited before filing of the return of income
u/s.139(1) of the Act. We find that the Hon’ble Supreme Court in the
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case of Pr. CIT vs Rajasthan Beverage Corporation Ltd., (2017) 84
Taxman. Com 185 (SC), 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 (p-ara 2) in favour of assessee. 10. Respectfully following the decision of Hon’ble Supreme Court in the
case of Rajasthan Beverage Corporation Ltd., (supra), we delete the
addition of Rs.11,56,756/- sustained by the CIT(A) and allow the grounds
of appeal of the assessee.
In the result, appeal of the assessee is allowed.
Order pronounced on 20/03/2018. Sd/- sd/- (Pavan Kumar Gadale) (N.S Saini) JUDICIALMEMBER ACCOUNTANT MEMBER Cuttack; Dated 20 /03/2018 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : The Orissa State Co- operative Milk Producers Federation Lt., Plot No.D-2, Sahid Nagar, Bhubaneswar 2. DCIT, Circle 4(1), The Respondent. Bhubaneswar. 3. The CIT(A)-2, Bhubaneswar 4. Pr.CIT-2, Bhubaneswar BY ORDER, 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// SR.PRIVATE SECRETARY ITAT, Cuttack