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Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI SUNIL KUMAR YADAV & SHRI A.K. GARODIA
Date of hearing : 19.09.2017 Date of Pronouncement : 28.09.2017 O R D E R
Per Sunil Kumar Yadav, Judicial Member
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 law and facts of the case. 2. Whether on the facts and circumstances of the case the CIT(A) is justified in law in not considering the provisions of Section 36(1) of the I. T. Act"?
3. Whether on the facts and circumstances of the case the CIT(A) is justified in law in considering that the contribution of PF remitted by the employer after due date prescribed is not in contravention to the provisions of section 43B of the I. T. Act"? 4. For these and other grounds that may be urged at the time of hearing, it is prayed that the order of the CIT(A) in so far as it relates to the above grounds may be reversed and that of the Assessing Officer may be restored. 5. The appellant craves leave to add, alter, amend and/or delete any of the grounds mentioned above.”
The ld. counsel for the assessee has invited our attention that the assessee has made the payments of employee contribution towards PF during the grace period and even before the due date of filing of the return, but the AO has disallowed the payments against which an appeal was filed before the CIT(Appeals) with the submission that the payments were made during the grace period. The CIT(Appeals) re-examined the issue in the light of judgment of Hon'ble jurisdictional High Court in the case of M/s. Essae Tereoka (P) Ltd. v. DCIT, 366 ITR 408 (Kar) and deleted the addition of Rs.36,24,844.
Aggrieved, the revenue has preferred an appeal before the Tribunal and placed reliance upon the order of the AO; whereas the ld. counsel for the assessee has contended that contribution to PF was made on 17.7.12 and 17.9.12, 17.10.12 & 17.1.13. Since the payment was made within the grace period of 5 days, the same was allowed as per Circular and also the judgment of Hon'ble jurisdictional High Court. The ld. counsel for the assessee has further explained the delay for few days on account of Saturday & Sunday.
Having carefully examined the orders of lower authorities, we find that the payments towards contribution to PF were made during the grace period. Now it has been repeatedly held that even if the payment is made before the due date for filing of the return, it should be allowed. Keeping in view the legal provisions, since we find that the payments towards contribution to PF were made well before the due date for filing of the return, no disallowance can be made. Accordingly, we confirm the order of the CIT(Appeals).
In the result, the appeal of the revenue is dismissed.
Pronounced in the open court on this 28th day of September, 2017.
Sd/- Sd/-
( A.K. GARODIA ) ( SUNIL KUMAR YADAV) Accountant Member Judicial Member Bangalore, Dated, the 28th September, 2017.