DCIT, BANGALORE vs. M/S APOLLO POWER SYSTEMS PVT. LTD., BANGALORE

ITA 529/BANG/2015Status: DisposedITAT Bangalore30 July 2015AY 2011-123 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the deduction for employees' contribution to PF and ESI, even if deposited after the statutory due date but before the due date of filing the return, is allowable. This decision followed the jurisdictional High Court's ruling.

What were the facts?

The assessee company remitted employees' contributions to PF and ESI after the due dates specified under the respective Acts but before the due date for filing the return of income. The Assessing Officer disallowed this as a deduction, treating it as income in the hands of the assessee.

What were the issues?

Whether employees' contribution to PF and ESI paid after the due date under the respective Acts but before the due date of filing the return is eligible for deduction.

Which sections of the Income-tax Act were involved?

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

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE

Before: SMT. P. MADHAVI DEVI & SHRI JASON P BOAZ

For Appellant: Dr. P.K.Srihari, Addl.CIT(DR)
For Respondent: Shri B.Somaskanda, Advocate
Hearing: 28/07/2015Pronounced: 30/07/2015

Per Smt. P. MADHAVI DEVI, JM:

In this appeal, the Revenue is aggrieved by the order of the order of the CIT(A)–I, Bangalore, dated 20/01/2015 in allowing the claim of the assessee u/s 36(1)(va) of the Income-tax Act, 1961 [‘Act'] by following the decision of the juri ictional High Court in the case of Essae Teraoka Pvt. Ltd., without appreciating the fact that the assessee has not remitted the employees’ contribution towards Provident Fund and ESI within the due date M/s.Apollo Power Systems Pvt. Ltd. specified under the Act and as such, these sums are income in the hands of the assessee in terms of section 2(24)(x) read with section 36(1)(va) of the Act.

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