Essae Teraoka Pvt. Ltd. v. DCIT

Asia Seeds India Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, CPC, Bangalore

In the result, the appeals filed by the assessee are allowed

Bench: Shri Chandra Poojari, Am & Smt.Beena Pillai, Jm

…e material on record. Admittedly, the assessee has remitted the employees' contribution to ESI before the due date for filing of return u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court in the case of Essae Teraoka (P.) Ltd. v. DCIT reported in 366 ITR 408 (Kar.) has categorically held that the assessee would be entitled to deduction of 4 ITA Nos.714-715/Bang/2021 M/s.Asia Seed India (P) Ltd. employees' contribution to ESI provided the payment was made prior to the due date of filing of return of income u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court differed with the judgment of t…

Sivan Securities Private Limited, Bangalore vs. The Deputy Commissioner of Income Tax, CPC, Bangalore

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

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2018-19 M/S. Sivan Securities Pvt. The Deputy Ltd., Commissioner Of No. 23/2, Coffeeday Square, Income Tax, Vittal Mallya Road, Cpc, Bangalore – 560 001. Bangalore. Vs. Pan: Aaccs5138G Appellant Respondent Assessee By : Shri C. Ramesh, Ca : Shri Priyadarshi Mishra, Addl. Revenue By Cit (Dr) Date Of Hearing : 07-02-2022 Date Of Pronouncement : 07-02-2022 Order Per Beena Pillaipresent Appeal By The Assessee Has Been Filed By Assessee Against The Order Dated 21.10.2021 Passed By The Ld.Cit(A)-11, Bangalore Relating To Assessment Year 2018-19 On Following Grounds Of Appeal: “1. The Order Of The Learned Commissioner Of Income Tax (Appeals) Is Opposed To The Facts Of The Case & Law Applicable To It. 2. The Learned Commissioner Of Income Tax (Appeals) Erred In Confirming The Disallowance Of Rs.11,05,657/- Invoking The Provisions Of Section 143(1)(A)(Ii) Of The Act, Holding That The Said Amount Is Assessable Under The Provisions Of Section 36(1)(Va) Of The Act.

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessment Year : 2018-19 M/s. Sivan Securities Pvt. The Deputy Ltd., Commissioner of No. 23/2, Coffeeday Square, Income Tax, Vittal Mallya Road, CPC, Bangalore – 560 001. Bangalore. Vs. PAN: AACCS5138G APPELLANT RESPONDENT Assessee by : Shri C. Ramesh, CA : Shri Priyadarshi Mishra, Addl. Revenue by CIT (DR) Date of Hearing : 07-02-2022 Date of Pronouncement : 07-02-2022 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal by the assessee has been filed by assessee ag…

Rakesh Kumar Jain, Bangalore vs. The Assistant Commissioner of Income Tax, Circle-2(2)(1), Bangalore

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

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year : 2019-20

…he material on record. Admittedly, the assessee has remitted the employees' contribution to ESI before the due date for filing of return u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court in the case of EssaeTeraoka (P.) Ltd. v. DCIT reported in 366 ITR 408 (Kar.) has categorically held that the assessee would be entitled to deduction of employees' contribution to ESI provided the payment was made prior to the due date of filing of return of income u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court differed with the judgment of the Hon'ble Gujarat High Court in the case of CIT v. Gujar…

Sdtork Controls Private Limited, Bengaluru vs. Assistant Director of Income Tax, CPC, Bangalore

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

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessmentyear: 2019-20 Tork Controls Pvt. Ltd. 106, 10Thmain Road Rpc Layout Asst. Director Of Income Tax, Vijayanagar Vs. Cpc Bangalore 560 104 Bangalore

…he material on record. Admittedly, the assessee has remitted the employees' contribution to ESI before the due date for filing of return u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court in the case of EssaeTeraoka (P.) Ltd. v. DCIT reported in 366 ITR 408 (Kar.) has categorically held that the assessee would be entitled to deduction of employees' contribution to ESI provided the payment was made prior to the due date of filing of return of income u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court differed with the judgment of the Hon'ble Gujarat High Court in the case of CIT v. Gujar…

M/S. Icon Engineering Works, Bangalore vs. Deputy Commissioner of Income Tax, CPC, Bangalore

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

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

…n of employees’ contribution to PF and ESI having regard to the provisions of section 43B of the I.T.Act. In this context, the assessee relied on the judgment of the Hon’ble jurisdictional High Court in the case of Essae Teraoka Pvt. Ltd Vs. DCIT, reported in 366 ITR 408 (Kar.). The CIT(A), however, rejected the appeal of the assessee. The CIT(A) held that the issue involved in the appeal is debatable and hence appeal cannot be entertained from an order u/s 154 of the I.T.Act. It was further held that the amendment to section 36(1)(va) and 43B of the I.T.Act by Finance Act, 2021 is clarificatory and has got retro…

Marappa Shivakumar, Bangalore vs. Deputy Commissioner of Income Tax, CPC, Bangalore

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

…re the due date specified under the respective Act. However, the assessee had paid the same before the due date of filing of the return u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court in the case of Essae Teraoka (P.) Ltd. v. DCIT reported in 366 ITR 408 (Kar.) has Page 4 of 6 categorically held that the assessee would be entitled to deduction of employees' contribution to PF and ESI provided the payment was made prior to the due date of filing of return of income u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court differed with the judgment of the Hon'ble Gujarat High Court in the c…

Telecomone Teleservices India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, CPC, Bangalore

In the result, the appeals filed by the assessee are allowed

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

…sion to 3 ITA Nos.694-695/Bang/2021 M/s.Telecomone Teleservices India Private Limited. section 43B of the Act. In this context, the assessee relied on the judgment of the Hon’ble Karnataka High Court in the case of Essae Teraoka Pvt. Ltd Vs. DCIT, reported in 366 ITR 408. The CIT(A) after noticing the difference between the employer’s contribution and employees’ contribution to PF and ESI held that only employer’s contribution to the PF and ESI is entitled to deduction u/s 43B of the I.T.Act, if the payments are made prior to the due date of filing of the return u/s 139(1) of the I.T.Act. Further, by placing reli…

Telecomone Teleservices India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, CPC, Bangalore

In the result, the appeals filed by the assessee are allowed

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

…sion to 3 ITA Nos.694-695/Bang/2021 M/s.Telecomone Teleservices India Private Limited. section 43B of the Act. In this context, the assessee relied on the judgment of the Hon’ble Karnataka High Court in the case of Essae Teraoka Pvt. Ltd Vs. DCIT, reported in 366 ITR 408. The CIT(A) after noticing the difference between the employer’s contribution and employees’ contribution to PF and ESI held that only employer’s contribution to the PF and ESI is entitled to deduction u/s 43B of the I.T.Act, if the payments are made prior to the due date of filing of the return u/s 139(1) of the I.T.Act. Further, by placing reli…

Thiruvalaya Venugopal, Bangalore vs. Assistant Commissioner of Income Tax, CPC, Bangalore

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

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year : 2018-19

…he material on record. Admittedly, the assessee has remitted the employees' contribution to ESI before the due date for filing of return u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court in the case of EssaeTeraoka (P.) Ltd. v. DCIT reported in 366 ITR 408 (Kar.) has categorically held that the assessee would be entitled to deduction of employees' contribution to ESI provided the payment was made prior to the due date of filing of return of income u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court differed with the judgment of the Hon'ble Gujarat High Court in the case of CIT v. Gujar…

Suresh & Co., Bengaluru vs. Deputy Commissioner of Income Tax, CPC, Bangalore

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

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year: 2018-19

…he material on record. Admittedly, the assessee has remitted the employees' contribution to ESI before the due date for filing of return u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court in the case of EssaeTeraoka (P.) Ltd. v. DCIT reported in 366 ITR 408 (Kar.) has categorically held that the assessee would be entitled to deduction of employees' contribution to ESI provided the payment was made prior to the due date of filing of return of income u/s 139(1) of the I.T.Act. The Hon'ble jurisdictional High Court differed with the judgment of the Hon'ble Gujarat High Court in the case of CIT v. Gujar…

Haradanahally Chennappa Reddy Arunamma, Tumkur vs. Deputy Commissioner of Income Tax, CPC, Bangalore

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

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessment Year : 2018-19 Shri Haradanahally Chennappa Reddy The Deputy Arunamma, Commissioner of #F22, Narayana Enterprises, Income Tax, MG Road, Maruthi Plaza, CPC, Tumkur – 572 101. Vs. Bangalore. PAN: ACTPA2931P APPELLANT RESPONDENT Assessee by : Shri Sandeep Chalapathy, CA : Shri Sankarganesh K, JCIT Revenue by (DR) Date of Hearing : 01-02-2022 Date of Pronouncement : 01-02-2022 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal by the assessee has been filed b…

Sri. Shamanna Nagamma Balasubramany, Bangalore vs. Deputy Commissioner of Income Tax, CPC, Bangalore

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

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

…of PF and ESI having regard to the provision to 3 Sri Shamanna Nagamma Balasubramany. section 43B of the Act. In this context, the assessee relied on the judgment of the Hon’ble Karnataka High Court in the case of Essae Teraoka Pvt. Ltd Vs. DCIT, reported in 366 ITR 408. The CIT(A) after noticing the difference between the employer’s contribution and employees’ contribution to PF and ESI held that only employer’s contribution to the PF and ESI is entitled to deduction u/s 43B of the I.T.Act, if the payments are made prior to the due date of filing of the return u/s 139(1) of the I.T.Act. Further, by placing reli…

M/S. Hi Q Design and Detailing Private Limited, Bengaluru vs. Assistant Director of Income Tax, CPC, Bengaluru

In the result, the appeals filed by the assessee are allowed

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

…ained on that basis is opposed to law and facts of the appellant's 5. The Learned NFAC is not justified in refusing to follow the binding jurisdictional judgement of the Hon'ble Karnataka High Court rendered in the case of Essae Teraoka Private Ltd. Vs. DCIT (366 ITR 408) in favour of the assessee on the ground that the said judgement was rendered before the aforesaid amendment made under the Finance Act, 2021. 6. The learned NFAC failed to adjudicate the ground of the appellant that the learned Assessing Officer has exceeded jurisdiction in incorporating the adjustments which are not covered within the scope of…

M/S. Hi Q Design and Detailing Private Limited, Bengaluru vs. Assistant Director of Income Tax, CPC, Bengaluru

In the result, the appeals filed by the assessee are allowed

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

…ained on that basis is opposed to law and facts of the appellant's 5. The Learned NFAC is not justified in refusing to follow the binding jurisdictional judgement of the Hon'ble Karnataka High Court rendered in the case of Essae Teraoka Private Ltd. Vs. DCIT (366 ITR 408) in favour of the assessee on the ground that the said judgement was rendered before the aforesaid amendment made under the Finance Act, 2021. 6. The learned NFAC failed to adjudicate the ground of the appellant that the learned Assessing Officer has exceeded jurisdiction in incorporating the adjustments which are not covered within the scope of…

Technocon Constructions & Infrastructure Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-7(1)(1) Represented by Assistant Director of Income Tax, CPC, Bangalore

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

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

…duction of the employees’ contribution of PF and ESI having regard to the provision to section 43B of the Act. In this context, the assessee relied on the judgment of the Hon’ble Karnataka High Court in the case of Essae Teraoka Pvt. Ltd Vs. DCIT, reported in 366 ITR 408. The CIT(A) after noticing the difference between the employer’s contribution and employees’ contribution to PF and ESI held that only employer’s contribution to the PF and ESI is entitled to deduction u/s 43B of the I.T.Act, if the payments are made prior to the due date of filing of the return u/s 139(1) of the I.T.Act. Further, by placing reli…

M/S. Methods (India) Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle-4(1)(2), Bengaluru

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

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

…te Limited. the aforesaid disallowance of Rs. 19,35,406/- in respect of the belated payments of the Employee's share of PF and ESI was allowable having regard to the judgement of the Hon'ble Karnataka High Court in the case of Essae Teroka Limited reported in 366 ITR 408 [Karl since the same has been paid before the due date for filing the return of income u/s 139(1) of the Act and hence, the disallowance made ought to have been deleted. 4. The learned CIT[A] 1 NFAC is not justified in holding that the amendment made by insertion of Explanation 2 to the provisions of section 36[1 ][va] of the Act and the insertio…

Sri. P Anand Vardhan Reddy, Bengaluru vs. Assistant Director of Income Tax, CPC, Bengaluru

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

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

…ddy. employees’ contribution to PF and ESI having regard to the provisions of section 43B of the I.T.Act. In this context, the assessee relied on the judgment of the Hon’ble jurisdictional High Court in the case of Essae Teraoka Pvt. Ltd Vs. DCIT, reported in 366 ITR 408 (Kar.). The CIT(A), however, rejected the appeal of the assessee. The CIT(A) held that the issue involved in the appeal is debatable and hence appeal cannot be entertained from an order u/s 154 of the I.T.Act. It was further held that the amendment to section 36(1)(va) and 43B of the I.T.Act by Finance Act, 2021 is clarificatory and has got retro…

Sri. P Anand Vardhan Reddy, Bengaluru vs. Assistant Director of Income Tax, CPC, Bengaluru

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

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

…duction of the employees’ contribution of PF and ESI having regard to the provision to section 43B of the Act. In this context, the assessee relied on the judgment of the Hon’ble Karnataka High Court in the case of Essae Teraoka Pvt. Ltd Vs. DCIT, reported in 366 ITR 408. The CIT(A) after noticing the difference between the employer’s contribution and employees’ contribution to PF and ESI held that only employer’s contribution to the PF and ESI is entitled to deduction u/s 43B of the I.T.Act, if the payments are made prior to the due date of filing of the return u/s 139(1) of the 4 Sri.P.Anand Vardhan Reddy. I.T.…

Sri. P Anand Vardhan Reddy, Bengaluru vs. Assistant Director of Income Tax, CPC, Bengaluru

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

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

…ddy. employees’ contribution to PF and ESI having regard to the provisions of section 43B of the I.T.Act. In this context, the assessee relied on the judgment of the Hon’ble jurisdictional High Court in the case of Essae Teraoka Pvt. Ltd Vs. DCIT, reported in 366 ITR 408 (Kar.). The CIT(A), however, rejected the appeal of the assessee. The CIT(A) held that the issue involved in the appeal is debatable and hence appeal cannot be entertained from an order u/s 154 of the I.T.Act. It was further held that the amendment to section 36(1)(va) and 43B of the I.T.Act by Finance Act, 2021 is clarificatory and has got retro…

Ajith Padival, Bengaluru vs. Deputy Commissioner of Income Tax, Circle 4(3)(1), Represented by Assistant Director of Income Tax, CPC, Bangalore

In the result, the appeal by the assessee is allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2018-19

…u/s 36(1)(va) of the Act and it is not hit by explanation 2 to sec.36(1)(va) of the Act which calls for payment within the due date prescribed under the relevant Act. For this purpose he relied on the judgment in the case of Essac Teraoka (P.) Ltd. v. Dy. CIT 366 ITR 408 (Kar.), wherein it has held as under: “15. From bare perusal of this provision, it is clear that under the provision, for IT Act, an extension is given to Page 3 of 8 the employer to make payment of contribution to provident fund or any other fund till the "due date" applicable for furnishing the return of income under sub- section(1) of section…