RAJEEVAN K NAMBISAN,VADODARA vs. THE ITO, WARD-1(2)(4), VADODARA

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ITA 157/AHD/2020Status: DisposedITAT Ahmedabad15 June 2022AY 2012-133 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that late payment of employees' contribution to PF and ESIC, even if deposited before the income tax return filing due date, cannot be equated with the due date under the specific PF and ESIC Acts. The jurisdictional High Court's decision on this matter was against the assessee.

What were the facts?

The assessee, engaged in manpower supply, appealed against the disallowance of employees' contribution to PF and ESIC for late deposit. The disallowance was made by the Assessing Officer and confirmed by the CIT(A).

What were the issues?

Whether late deposit of employees' contribution to PF and ESIC, made before the due date of filing the income tax return, is allowable as a deduction.

Which sections of the Income-tax Act were involved?

Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH, AHMEDABAD

Before: SHRI P.M. JAGTAP & Ms. SUCHITRA KAMBLE

For Respondent: Shri Mukesh Kumar Sharma, Sr. D.R
Hearing: 31.05.2022Pronounced: 15.06.2022

PER SUCHITRA KAMBLE, JUDICIAL MEMBER :

1.

These are appeals filed by the assessee against the two different orders dated 09.12.2019 & 11.12.2019 passed by the CIT(A)-5, Vadodara for the Assessment Years 2012-13 & 2013-14 respectively.

2.

The assessee in its appeals has raised the following grounds of appeal :

“1. The Learned Commissioner of Income Tax (Appeals) erred in rejecting the submission of the appellant and further erred in holding that in respect of Employees Contribution to PF & ESIC the disallowance was covered by the decision of the Hon’ble Gujarat High Court and rejecting the submission made before him regarding disallowance of Employees Contribution to PF and ESIC.

2. The Learned Commissioner of Income Tax (Appeals) erred in confirming the addition of Rs.40,89,967/- on account of late deposit of PF & ESIC & 158/Ahd/2020 A.Ys. 2012-13 & 2013-13 Page 2 of 3 which have been deposited before the due date of filing the return of income.

3. It is prayed that the addition of Rs.40,89,967/- be deleted.” for A.Y. 2013-14 “1. The Learned Commissioner of Income Tax (Appeals) erred in confirming the disallowance in respect of Employees Contribution to PF & ESIC which was deposited late but before the due date of filing the return of income amounting to Rs.35,44,964/-.

2. It is prayed that the addition of Rs.35,44,964/- being late deposit of Employees Contribution to PF & ESIC may kindly be deleted.”

3.

In A.Y. 2012-13 the assessee filed return of income on 18.09.2012 declaring total income of Rs.13,28,540/- and in A.Y. 2013-14 the assessee filed return of income declaring total income of Rs.15,55,192/-. The assessee is engaged in the business of supplying Manpower to various companies. After considering the submissions of the assessee, the Assessing Officer completed the assessment under Section 143(3) of the Income Tax Act on 09.03.2015 after making addition/disallowance of Rs.48,46,298 on account of employees’ contribution to PF and ESIC under Section 43B in A.Y. 2012-13 and Rs.35,44,964/- in A.Y. 2013-14. The Ld. AR submitted that in respect of decision of the Hon’ble Gujarat High Court in GSRTC as well as Kalpana Enterprises vs. CIT, Tax Appeal No.1711 of 2009 and also in other several cases vide its order dated 26.12.2013 has given finding that the disallowance in delayed payment of employees’ contribution to PF and ESIC are properly done by the Revenue. The ld. AR submitted that the issue is against the assessee.

4.

Learned DR relied upon the assessment order and the order of the CIT(A) as well as the decision of the Hon’ble Gujarat High Court in identical issues.

5.

We have heard the Learned DR and perused all the relevant material available on record. The Hon’ble Gujarat High Court has clearly set out that the late payment of employees’ contribution to PF and ESIC before the statutory date of filing of income tax return cannot be equated with the due date under the specific statute of Employees’ PF Act and Employees State Insurance Act as there are penalty to the & 158/Ahd/2020 A.Ys. 2012-13 & 2013-13 Page 3 of 3 delayed payment under those statute. The issue is decided against the assessee by the jurisdictional High Court and hence it is covered against the assessee. Both the appeals, therefore, are dismissed,

6.

In the result, both the appeals filed by the assessee are dismissed.

Order pronounced in the open Court on this 15th day of June, 2022.

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