M/S. AIR CONTROL & CHEMICAL ENGINEERING COMPANY LTD.,AHMEDABAD vs. THE DY. CIT, CIRCLE-1(1)(1), AHMEDABAD

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ITA 263/AHD/2017Status: DisposedITAT Ahmedabad05 April 2018AY 2013-142 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that delayed deposit of employees' contribution to PF/ESI is not deductible in computing income. This decision followed the jurisdictional High Court's judgment in CIT vs. Gujarat State Road Transport Corporation.

What were the facts?

The assessee challenged the confirmation of an addition of Rs. 13,75,939 by the CIT(A). This addition was made by the Assessing Officer for the late payment of employees' contribution to PF/ESI.

What were the issues?

Whether the late payment of employees' contribution to PF/ESI is deductible in computing income under the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 36(1)(va),Section 2(24)(x),Section 28,Section 143(3)

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, AHMEDABAD “A” BENCH, AHMEDABAD

ITA No. 263/Ahd/2017 Air Control & Chemical Engineering Vs. DCIT Assessment year: 2013-14 Page 1 of 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH, AHMEDABAD [Coram: Pramod Kumar AM and Rajpal Yadav JM] ITA No. 263/Ahd/2017 Assessment Year: 2013-14 Air Control & Chemical Engineering Co. Ltd. ............…………......Appellant C/o. Vinit Moondra, CA 201, Sarap, Opp. Navjivan Press, Ashram Road, Ahmedabad-14 [PAN : AABCA 6009 R] Vs. Dy Commissioner of Income-tax ...........................Respondent Circle 1(1)(1), Ahmedabad

Appearances by:

None for the Appellant Saurabh Singh for the Respondent

Date of concluding the hearing : 15.03.2018 Date of pronouncing the order : 05.04.2018

O R D E R Per Bench :

1.

By way of this appeal, the assessee-appellant has challenged correctness of the order dated 21st December, 2016 passed by the by the CIT(A)-1, Ahmedabad, in the matter of assessment under section 143(3) of the Income-tax Act, 1961, for the assessment year 2013-14.

2.

The solitary grievance of the assessee is that the learned CIT(A) has erred in confirming the addition of Rs.13,75,939/-, which was added by the Assessing Officer with the aid of Section 36(1)(va) r.w.s. 2(24)(x) of the Income-tax Act, 1961, for the late payment of Employees Contribution to PF/ESI.

3.

Learned representatives fairly agree that the aforesaid issue is squarely covered against the assessee by Hon’ble jurisdictional High Court’s judgment in the case of CIT vs. Gujarat State Road Transport Corporation, 366 ITR 170 (Guj.), wherein it is categorically held that in the case of delayed deposit of employees contribution to PF, the same will not be deductable in computing income under section 28 of the Act. The law so laid down by the Hon’ble jurisdictional High Court is binding on us. The mere fact that an appeal against the said decision is pending before the Hon’ble Supreme Court does not dilute binding nature of this judicial precedent. As regard dismissal of SLP in the case of Rajasthan State Beverages Corporation Ltd (supra), it is only elementary that when a SLP is dismissed by a non- speaking order, it does not constitute a law declared by Hon’ble Supreme court, and as such, it is not binding under Article 141 of the Constitution of India. The authority,

ITA No. 263/Ahd/2017 Air Control & Chemical Engineering Vs. DCIT Assessment year: 2013-14 Page 2 of 2 for this proposition, is contained in a series of judgments of Hon’ble Supreme Court, including, inter alia, in the cases of State of Manipur vs. ThingujamBrojenMeetai, (1996) 9 SCC 29; Om Prakash Gargi v. State of Punjab, (1996) 11 SCC 399 and Sun Export Corpn v. Collector of Customs, AIR 1997 SC 2658. We, therefore, see no legally sustainable merit in the case of the assessee and, respectfully following the judgment of Hon’ble jurisdictional High Court in the case of Gujarat State Road Transport Corporation (supra), dismiss the grievance of the assessee.

4.

In the result, appeal of the assessee is dismissed. Pronounced in the open court today on the 5th April, 2018

Sd/- Sd/-

Rajpal Yadav Pramod Kumar (Judicial Member) (Accountant Member) Ahmedabad, the 5th day of April, 2018 **bt Copies to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order TRUE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad 1. Date of dictation: ................covered matter...04.04.2018... 2. Date on which the typed draft is placed before the Dictating Member: ....... 04.04.2018.......... 3. Date on which the approved draft comes to the Sr. P.S./P.S.: …..04.04.2018..... . 4. Date on which the fair order is placed before the Dictating Member for Pronouncement: .... 05.04.2018... 5. Date on which the file goes to the Bench Clerk : .. 05.04.2018.... 6. Date on which the file goes to the Head Clerk : ……………………………. 7. The date on which the file goes to the Assistant Registrar for signature on the order: …… 8. Date of Despatch of the Order: ………………......

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