DCIT, CIRCLE - 10(1), KOLKATA vs. M/S. BENGAL CHEMICALS & PHARMACEUTICALS LIMITED., KOLKATA

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ITA 2320/KOL/2018Status: DisposedITAT Kolkata11 April 2019AY 2007-082 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that no disallowance can be made for belated payment of employees' contribution towards PF if deposited before the due date of filing the return of income, following the jurisdictional High Court's decision.

What were the facts?

The assessee company deposited employee's contribution towards PF after the due date but before the due date of filing the return of income. The Revenue disallowed this amount. The CIT(A) deleted the addition.

What were the issues?

Whether disallowance can be made for delayed deposit of employee's PF contribution when deposited before the due date of filing the return of income.

Which sections of the Income-tax Act were involved?

Section 36(1)(va),Section 2(24)(x)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH (D

Before: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi, JM]

order : April 11, 2019 ORDER Per P.M. Jagtap, Vice President (KZ) This appeal is preferred by the revenue against the order of Ld. CIT(A) – 10, Kolkata dated 28th August, 2018 and the solitary ground raised therein by the Revenue reads as under: “That on the fact and in the circumstances of the case the Ld. CIT(A) has erred in deleting the addition of Rs. 81,47,560/- u/s 36(1)(va) r.w.s. 2(24)(x) of the Act as the assessee company during the year deposited employee’s contribution towards PF amounting to Rs. 81,47,560/- after due date”

2.

We have heard the arguments of both the sides and also perused the relevant material available on record. As agreed by the learned representatives of both the sides, the solitary issue involved in this appeal of the Revenue is squarely covered in favour of the assessee inter alia by the decision of Hon’ble Kolkata High Court in the case of CIT vs Vijay Shree Ltd. (ITAT No. 245 of 2011, GA No. 2607 of 2011) wherein it was held that no disallowance on account of Assessment Year: 2007-08 M/s. Bengal Chemical & Pharmaceuticals Ltd.

1.

belated payment of employees contribution towards ESI and PF made after the due dates prescribed in the relevant legislation but before the due date of filing of the return of income can be made. Respectfully following the said decision of the Hon’ble Jurisdictional High Court, we uphold the impugned order of the Ld. CIT(A) giving relief to the assessee on this issue and dismiss the appeal filed by the Revenue.

3.

In the result, the appeal of the Revenue is dismissed. Order Pronounced in the Open Court on 11th April, 2019.

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