INCOME TAX OFFICER, BANGALORE vs. M/S COLOUR LINES CLOTHING INDIA PVT LTD, BANGALORE

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ITA 431/BANG/2017Status: DisposedITAT Bangalore31 October 2017AY 2013-143 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 confirmed the order of the CIT(Appeals), finding no infirmity in allowing the deduction as the payment was made before the filing of the return of income, following the jurisdictional High Court's precedent.

What were the facts?

The revenue appealed against the CIT(Appeals) order which allowed belated remittance of employee's contribution to EPF/ESI as a deduction if paid before the due date of filing the return of income. The CIT(Appeals) followed a jurisdictional High Court judgment.

What were the issues?

Whether belated remittance of employee's contribution to EPF/ESI, paid before the due date of filing the return of income, is allowable as a deduction under Section 43B of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 2(24)(x),Section 36(1)(va),Section 43B,Section 139(1)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “C” BENCH : BANGALORE

Before: SHRI SUNIL KUMAR YADAV & SHRI A.K. GARODIA

For Appellant: Shri Sumer Singh Meena, Addl. CIT(DR)(ITAT)
Hearing: 12.10.2017Pronounced: 31.10.2017

Date of hearing : 12.10.2017 Date of Pronouncement : 31.10.2017 O R D E R

Per Sunil Kumar Yadav, Judicial Member

1.

This appeal is preferred by the revenue against the order of the CIT(Appeals) inter alia on the following grounds:-

“1) The order of the learned CIT (A) is opposed to the law and facts of the case.

2) The learned CIT (A) erred in allowing belated remittance of employee's contribution to EPF / ESI as a deduction if it is paid before the due date for filing of the return of income as specified u/s 139(1) of the Act, whereas the employee's contribution to PF/ESI can be allowed as a deduction only if the payments were made within the specified due dates under PF /ESI Act.

3) The CIT (A) erred in not appreciating the fact that the belated remittance of employee's contribution to PF/ESI are to be treated as income of the assesses in terms of the provisions of Section 2(24)(x) r.w.s 36(1)(va) of the Act and therefore, the proviso to Section 43B is not applicable.

4) For these and any other grounds that may arise at the time of hearing, it is humbly prayed that the order of the CIT (A) be reversed on the above issue and that of the Assessing Officer may be restored.”

2.

This appeal came up for hearing on 12.10.2017, but none appeared for the assessee.

3.

Having carefully examined the grounds of appeal, we find that this appeal can be disposed of even in the absence of the assessee. We accordingly heard the appeal.

4.

We have carefully perused the grounds of appeal and the order of CIT(Appeals) and we find that the CIT(Appeals) has adjudicated the issue, following the judgment of the Hon'ble jurisdictional High Court in the case of Sabari Enterprises, (2008) 298 ITR 141 having noted that the payments were made before the filing of return of income, therefore the expenditure is to be allowed u/s. 43B of the Act. Since the CIT(Appeals) has adjudicated the issue following the judgment of the Hon'ble jurisdictional High Court, we find no infirmity in the order of the CIT(Appeals). Accordingly the order of CIT(Appeals) is confirmed.

5.

In the result, the appeal of the revenue is dismissed.

Pronounced in the open court on this 31st day of October, 2017.

Sd/- Sd/-

( A.K. GARODIA ) ( SUNIL KUMAR YADAV) Accountant Member Judicial Member Bangalore, Dated, the 31st October, 2017.

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