CIT v. Hindustan Organic Chemicals Limited

CAPACITE INFRAPROJECTS LIMITED ,MUMBAI vs. ACIT/DCIT CENTRAL CIRCLE 1(2), MUMBAI , MUMBAI

Bench: SHRI AMRJIT SINGH, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

…f deduction made by the Assessee, at the relevant time, was supported by the judgment of the Hon’ble Bombay High Court in the case of CIT vs. Ghatge Patil Transports Ltd. (2015) 53 taxmann.com 141 (Bombay), and CIT vs. Hindustan Organics Chemicals Ltd. [2014] 366 ITR 1 (Bombay). In the aforesaid judgments it was held that employees’ contribution towards PF/ESIC deposited before the due date of filing return was allowable as deduction under Section 36(1)(va) read with Section 43B of the Act. 10. However, subsequently, the Hon’ble Supreme Court in the case of Checkmate Services Private Ltd. v. CIT-1:[2022] 448 ITR…

CAPACITE INFRAPROJECTS LIMITED,MUMBAI vs. ACIT/DCIT CENTRAL CIRCLE 1(2), MUMBAI, MUMBAI

Bench: SHRI AMRJIT SINGH, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

…) and Employees’ State Insurance Corporation (ESIC) by placing reliance upon the judgment of the Hon’ble Bombay High Court in the case of CIT vs. Ghatge Patil Transports Ltd. (2015) 53 taxmann.com 141 (Bombay), CIT vs. Hindustan Organics Chemicals Ltd. [2014] 366 ITR 1 (Bombay) and the judgment of the Hon’ble Supreme Court in the case of CIT vs. Alom Extrusions Ltd. [2009] 319 ITR 306 (SC). In the aforesaid judgments it was held by the Hon’ble Courts that employees’ contribution towards PF/ESIC deposited before the due date of filing return was allowable as deduction under Section 36(1)(va) read with Section 43B…

ABBOTT HEALTHCARE PRIVATE LIMITED ,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 2(1)(1), MUMBAI

In the result, Ground No. 3 with its Sub-Grounds is allowed for statistical purposes

Bench: Shri Narender Kumar Choudhry & Shri Gagan Goyalabbott Healthcare Pvt. Ltd. 3, Corporate Park, Sion Trombay Road, Mumbai - 400 071 Pan: Aaack3935D ..... Appellant Vs. Acit 2(1) (1) R. No. 561, 5Th Floor, Aayakar Bhavan, Maharishi Karve Marg, Mumbai- 400 020 ..... Respondent & Acit 2(1) (1) R. No. 561, 5Th Floor, Aayakar Bhavan, Maharishi Karve Marg, Mumbai- 400 020 ...... Appellant Vs.

…icial precedents of Hon'ble jurisdictional High Court- as in this case, at the minimum, cannot fall in this category. Our attention was invited to Hon'ble jurisdictional High Court's judgments in the cases of CIT v. Hindustan Organic Chemicals Limited [(2014) 366 ITR 1 (Bom.)] and CIT v. Ghatge Patil Transports Ltd. [(2014) 368 ITR 749 (Bom.)].What is on record, in this case, is an audit report which is prepared by a third party, i.e. an independent tax auditor, and a lapse in the tax audit report, as indeed in this case, cannot be put against the assessee for the purpose of a disallowance under section 143(1). F…

KHANDELWAL LABORATORIES PRIVATE LIMITED ,MUMBAI vs. ADDITION COMMISSIONER OF INCOME TAX CPC, BENGALURU

In the result, the appeal is partly allowed

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI RATNESH NANDAN SAHAY (Accountant Member)

…down due to Covid-19 Pandemic. In 4 M/s. Khandelwal Laboratories Private Limited any case, payments were made within due date for filing of return and, therefore, allowable as per the decision of Hon’ble Bombay High Court in Hindustan Organics Chemicals Ltd. (366 ITR 1) and Ghatge Patil (368 ITR 749). The appellant also submitted a Circular No. C-1/Misc./2020- 21/Vol.1/1112 dated 15/05/2020 issued by the EPFO (Employees Provident Fund Organization) which states that for any delay in payment of any contribution or administrative charges due for any period during the lockdown, no proceeding should be initiated for…

TEX-STYLES INTERNATIONAL PVT. LTD,MUMBAI vs. DCIT CENTRALIZED PROCESSING CENTRE, BENGALURU

In the result, the appeal filed by the assessee is dismissed

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

…assessee filed appeal before the Tribunal. The Tribunal vide order dated 07/07/2022 (ITA No.1915/Mum/2021) allowed the appeal in favour of the assessee by relying on the decision of the jurisdictional High Court in the case of Hindustan Organics Chemicals Ltd 366 ITR 1 (Bom). 3. In view of the decision of the Hon’ble Supreme Court in the case of Checkmate Services Pvt Ltd in Civil Appeal No.2833 of 2016 passed on 12/10/2022, the revenue moved a miscellaneous application. The Tribunal vide order dated 09/08/2023 (MA No.172/Mum/2023) has recalled the order passed on 07/07/2022 and directed the registry to fix the a…

CONCENTRIX SERVICES INDIA PRIVATE LIMITED (FORMERLY KNOWN AS MINACS PRIVATE LIMITED, MINACS LIMITED & ADITY BIRLA MINACS WORLDWIDE LIMITED ),MUMBAI vs. JOINT COMMISSIONER OF IT (OSD)10(2)(2)ASSISTANT COMMISSIONER OF INCOME TAX-9(2)(2), MUMBAI

…able. 5. On the facts and circumstances of the case and in law, the Ld CIT(A) erred in allowing the delayed payments of employees' contribution to ESIC, amounting to Rs 23,30,594/-, relying upon the decision in CIT vs Hindustan Organics Chemicals Ltd. [2014] 366 ITR 1 (Bombay), without appreciating that the said decision has not been accepted by Revenue and SLP has been filed against the same The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of the AO be restored”. 13. Both the sides agreed that the grounds raised in the above cross- appeals for the Assessment Year 2012-…

CONCENTRIX SERVICES INDIA PRIVATE LIMITED (FORMERLY KNOWN AS MINACS PRIVATE LIMITED, MINACS LIMITED & ADITY BIRLA MINACS WORLDWIDE LIMITED ),MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX-10(2)(2), MUMBAI

…able. 5. On the facts and circumstances of the case and in law, the Ld CIT(A) erred in allowing the delayed payments of employees' contribution to ESIC, amounting to Rs 23,30,594/-, relying upon the decision in CIT vs Hindustan Organics Chemicals Ltd. [2014] 366 ITR 1 (Bombay), without appreciating that the said decision has not been accepted by Revenue and SLP has been filed against the same The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of the AO be restored”. 13. Both the sides agreed that the grounds raised in the above cross- appeals for the Assessment Year 2012-…

GRAVIS HOSPITALITY LTD,MUMBAI vs. DCIT,CPC,, BANGALORE

In the result, the appeal by the assessee is dismissed

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

…ng return of income and same shall be allowed as deduction u/s 43B r.w.s. 36(1)(va) of the Act. (c) The CIT(A) erred in not following the binding decision of Hon'ble Jurisdictional Bombay High Court in the case of CIT Vs. M/s Hindustan Organics Chemicals Ltd [366 ITR 1] and CIT Vs. Ghatge Patil Transports Ltd [368 ITR 749] while deciding the issue in appeal.” 5. The only grievance of the assessee is against the disallowance on account of delayed payment of employees’ contribution to Provident Fund (P.F) and Employees State Insurance Corporation (E.S.I.C) under section 36(1)(va) of the Act. 6. The brief facts of…

SWASTIK TOTAL SERVICES PRIVATE LIMITED,MUMBAI SUBARBAN vs. CIT APPEAL, MUMBAI

In the result, all the grounds of the appeal filed by the assessee are dismissed

Bench: Shri Prashant Maharishi, Am & Shri Narender Kumar Choudhry, Jm

…case the learned authorized representative submitted that the issue is squarely covered in favor of the assessee at the time when the order was passed. Those two decisions of the honorable Bombay High Court in case of CIT Vs. Hindustan Organics Chemicals Ltd 366 ITR 1 and CIT Vs. Ghatge Patil Transports Ltd 368 ITR 749 were not reversed by the Supreme Court. It was further stated that as the decision of the honorable Supreme Court in case of Checkmate Services Private Limited (supra) was rendered purely in the context of merits of section 36 (1) (va) of the Act, the issue still arose whether in any case the disa…

SWASTIK TOTAL SERVICES PRIVATE LIMITED,MUMBAI SUBARBAN vs. CIT APPEAL, MUMBAI

In the result, all the grounds of the appeal filed by the assessee are dismissed

Bench: Shri Prashant Maharishi, Am & Shri Narender Kumar Choudhry, Jm

…case the learned authorized representative submitted that the issue is squarely covered in favor of the assessee at the time when the order was passed. Those two decisions of the honorable Bombay High Court in case of CIT Vs. Hindustan Organics Chemicals Ltd 366 ITR 1 and CIT Vs. Ghatge Patil Transports Ltd 368 ITR 749 were not reversed by the Supreme Court. It was further stated that as the decision of the honorable Supreme Court in case of Checkmate Services Private Limited (supra) was rendered purely in the context of merits of section 36 (1) (va) of the Act, the issue still arose whether in any case the disa…

ARUN WAMAN KOLI,MUMBAI vs. ADIT, CPC, BANGALURE

The appeals are dismissed

…deduction under Section 36(1)(va) read with Section 43B of the Act as per the judgment of the Hon’ble Bombay High Court in the case of CIT vs. Ghatge Patil Transports Ltd. (2015) 53 taxmann.com 141 (Bombay), CIT vs. 3 Hindustan Organics Chemicals Ltd. [2014] 366 ITR 1 (Bombay) and the judgment of the Hon’ble Supreme Court in the case of CIT vs. Alom Extrusions Ltd. [2009] 319 ITR 306 (SC). Further, the Tribunal has in number of decisions held that the amendments introduced by the Finance Act, 2021 are applicable for Assessment Year 2021-22, and therefore, the CIT(A) has erred in confirming the disallowance by pl…

PRADMAN ENGINEERING SERVICES P LTD.,MUMBAI vs. CIT (A), NFAC, DELHI, MUMBAI

The appeals are dismissed

…in the case of CIT vs. Alom Extrusions Ltd. [2009] 319 ITR 306 (SC) and the judgment of the jurisdictional High Court in the case of CIT vs. Ghatge Patil Transporters Ltd. (2015) 53 taxmann.com 141 (Bom HC) and CIT vs. Hindustan Organics Chemicals Ltd. [2014] 366 ITR 1 (Bombay). Therefore, the claim of the Assessee was as per law applicable. The question of making adjustment/disallowance on merit did not arise. Without prejudice to the aforesaid he submitted that even if the aforesaid issue was considered to be a debatable issue in view of the contrary judgments of the Hon’ble High Courts other than the jurisdict…

ODEX INDIA SOLUTIONS P LTD.,MUMBAI vs. CIT (A), NFAC , DELHI

The appeals are dismissed

…in the case of CIT vs. Alom Extrusions Ltd. [2009] 319 ITR 306 (SC) and the judgment of the jurisdictional High Court in the case of CIT vs. Ghatge Patil Transporters Ltd. (2015) 53 taxmann.com 141 (Bom HC) and CIT vs. Hindustan Organics Chemicals Ltd. [2014] 366 ITR 1 (Bombay). Therefore, the claim of the Assessee was as per law applicable. The question of making adjustment/disallowance on merit did not arise. Without prejudice to the aforesaid he submitted that even if the aforesaid issue was considered to be a debatable issue in view of the contrary judgments of the Hon’ble High Courts other than the jurisdict…

M/S. P.A.ZAVERI,MUMBAI vs. ADIT , CPC, BEGALURU

The appeals are dismissed

…in the case of CIT vs. Alom Extrusions Ltd. [2009] 319 ITR 306 (SC) and the judgment of the jurisdictional High Court in the case of CIT vs. Ghatge Patil Transporters Ltd. (2015) 53 taxmann.com 141 (Bom HC) and CIT vs. Hindustan Organics Chemicals Ltd. [2014] 366 ITR 1 (Bombay). Therefore, the claim of the Assessee was as per law applicable. The question of making adjustment/disallowance on merit did not arise. Without prejudice to the aforesaid he submitted that even if the aforesaid issue was considered to be a debatable issue in view of the contrary judgments of the Hon’ble High Courts other than the jurisdict…

UMBERTO CERAMICS INT P.LTD,MUMBAI vs. CIT (A) NFAC, DELHI

Appeal are dismissed

…turn of income as the provisions of Section 43B of the Act do not apply in case of Employee’s Contribution to Provident Fund. In view of the aforesaid, the judgments of the Hon’ble Bombay High Court in the case of CIT Vs. Hindustan Organics Chemicals Limited: 366 ITR 1, and CIT Vs. Ghatge Patil Transport Limited: 228 Taxmann 340, on which reliance has been placed by the Appellant in the grounds of appeal, would no longer advance the case of the Appellant. Accordingly, Ground No. 1 & 2 raised in the present appeal are dismissed. Ground No. 3 Before the CIT(A) the Appellant had, on a without prejudice basis, 9. c…