ACIT, CC - 4(2), KOLKATA, KOLKATA vs. M/S. BHADRESWAR AGRO PRIVATE LIMITED, BURDWAN

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ITA 1577/KOL/2018Status: DisposedITAT Kolkata05 March 2019AY 2016-172 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 upheld the deletion of the disallowance by the CIT(A). The decision was based on the jurisdictional High Court's ruling that such payments made before the return filing due date are allowable.

What were the facts?

The Assessing Officer disallowed a sum of Rs. 43,037/- for belated payment of employees' contribution to provident fund. The assessee paid the contribution after the due date under the Provident Fund Act but before the due date for filing the return of income.

What were the issues?

Whether belated payment of employees' contribution to provident fund, made before the due date of filing the return of income, 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, KOLKATA BENCH (D

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

order

: March 05, 2019 ORDER

Per P.M. Jagtap, Vice President

1.

This appeal is preferred by the revenue against the order of Ld. CIT(A) – 21, Kolkata dated 28.05.2018 and the solitary issue involved therein relates to the deletion by the Ld. CIT(A) of the disallowance of Rs. 43,037/- made by the AO on account of belated payment of employees contribution to provident fund after the due dates as prescribed in the Provident Fund Act but before the due date of filing the return of income for the year under consideration.

2.

At the time of hearing fixed in this case today, none has appeared on behalf of the assessee respondent. The learned DR has fairly and frankly admitted that the solitary issue involved in this appeal of the assessee 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, G.A. No. 2607 of 2011,

Assessment Year: 2016-17 M/s. Bhadreswar Agro Pvt. Ltd. Judgement dated 6th September, 2011 and the impugned order of the Ld. CIT(A) giving relief to the assessee on this issue deserves to be upheld by following the said decision of the Hon’ble Jurisdictional High Court. It is also observed that the tax effect involved in this appeal of the revenue is less than the monetary limit of Rs. 20 lakhs prescribed by the CBDT for filing the appeal of the department before the Tribunal as per Circular No. 3/2018 dated 11th July, 2018 and this appeal of the revenue is liable to be dismissed even on the ground of low tax effect.

3.

In the result, the appeal of the revenue is dismissed. Order Pronounced in the Open Court on 5th March, 2019.

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