TAILORS POINT PVT. LTD.,AHMEDABAD vs. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-4(1)(2), AHMEDABAD

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ITA 1561/AHD/2016Status: DisposedITAT Ahmedabad22 September 2017AY 2012-132 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The tribunal upheld the disallowance of employees' PF/ESI contributions due to delayed payment. The decision was based on a jurisdictional High Court ruling on similar facts.

What were the facts?

The assessee failed to deposit employees' PF/ESI contributions on or before the due dates. The Assessing Officer disallowed this amount, and the CIT(A) upheld the disallowance.

What were the issues?

Whether employees' contribution to PF/ESI, if paid after the due date but before the due date of filing the return of income, is allowable as a deduction. The legality of disallowing such contributions due to delayed payment.

Which sections of the Income-tax Act were involved?

Section 36(1)(va),Section 2(24),Section 143(3)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH AHMEDABAD

Hearing: 06.09.2017Pronounced: 22.09.2017

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH AHMEDABAD

BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER

ITA No. 1561/Ahd/2016 (Assessment Year: 2012-13) M/s. Tailors Point Pvt. Ltd., 9, 10, 11 Sapphire Complex, Nr. Cargo Motors, C. G. Road, Ahmedabad 380009 Appellant Vs. DCIT, Circle: 4(1)(2), “B” Wing, 2nd Floor, Pratyaksh Kar Bhavan, Panjra Pole, Ambawadi, Ahmedabad 380015 Respondent PAN: AABCT6060F

आवेदक क� ओर से/By Assessee : None राज�व क� ओर से/By Revenue : Shri Mahesh Jiwade, Sr. D.R. सुनवाई क� तार�ख/Date of Hearing : 06.09.2017 घोषणा क� तार�ख/Date of Pronouncement : 22.09.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER This assessee’s appeal for assessment year 2012-13 arises against the CIT(A)-7, Ahmedabad’s order dated 28.03.2016, in case no. CIT(A)-7/148/15-16, upholding Assessing Officer’s action disallowing employees’ contribution to PF/ESI u/s.36(1)(va) r.w.s. 2(24) on account of delayed payment to the tune of Rs.2,56,981/-, in proceedings u/s. 143(3) of the Income Tax Act, 1961; in short “the Act”.

ITA No. 1561/Ahd/16 (M/s. Tailors Point Pvt. Ltd. vs. DCIT) A.Y. 2012-13 - 2 -

Case called twice. None appears at assessee’s behest. The Registry has already sent it RPAD notice dated 22.08.2017. It is accordingly proceeded ex parte.

2.

We now advert to assessee’s sole substantive grievance assailing correctness of the above disallowance / addition on account of its non payment of employees’ PF/ESI contribution. Case file sufficiently indicates that the assessee has indeed not deposited the above contribution on or before the relevant due date. Learned CIT(A) quotes hon’ble jurisdictional high court’s decision in CIT vs. Gujarat State Road Transport Corporation (2014) 41 taxmann.com 100 (Guj.) reviving an identical disallowance on similar facts. We therefore accept Revenue’s arguments strongly supporting the same in the course of hearing.

3.

This assessee’s appeal is accordingly dismissed.

[Pronounced in the open Court on this the 22nd day of September, 2017.]

Sd/- Sd/- (MANISH BORAD) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 22/09/2017

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