Essae Teraoka Pvt. Ltd. v. DCIT

Sri Rajanikanth Reddy, Bengaluru vs. The Income Tax Officer, Ward-4(2)(2), Bangalore

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

Bench: Shri George George K, Jm & Shri Laxmi Prasad Sahu, Am

…said disallowance of Rs.30,68,795/- in respect of the belated payments of the Employees’ share of PF and ESI was allowable having regard to the judgment the Hon'ble 2 Sri Rajanikanth Reddy. 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] / 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 insertion…

Muthyala Suryababu, Bangalore vs. Income Tax Officer, Ward-1(2)(1), Bangalore

In the result, both the appeals filed by the assessee stands allowed

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahu

…is appeal before the Tribunal. 4.1 The Ld.AR submitted that an identical issue is decided in favour of the assessee by the Hon’ble Karnataka High Court and the Coordinate Bench of this Tribunal in following cases:  Essae Teraoka (P.) Ltd. v. DCIT reported in 366 ITR 408 (Kar.)  M/s. The Continental Restaurant & Café Co. v. ITO in ITA No.388/Bang/2021 (order dated 11.10.2021)  M/s. Nirmal Enviro Solutions Pvt. Ltd. vs. DCIT in ITA No. 315/Bang/2021 (order dated 12.10.2021)  Shri Gopalkrishna Aswini Kumar vs. ACIT in ITA No. 359/Bang/2021 (order dated 13.10.2021) 5. The learned Departmental Representative suppo…

Muthyala Suryababu, Bangalore vs. Income Tax Officer, Ward-1(2)(1), Bangalore

In the result, both the appeals filed by the assessee stands allowed

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahu

…is appeal before the Tribunal. 4.1 The Ld.AR submitted that an identical issue is decided in favour of the assessee by the Hon’ble Karnataka High Court and the Coordinate Bench of this Tribunal in following cases:  Essae Teraoka (P.) Ltd. v. DCIT reported in 366 ITR 408 (Kar.)  M/s. The Continental Restaurant & Café Co. v. ITO in ITA No.388/Bang/2021 (order dated 11.10.2021)  M/s. Nirmal Enviro Solutions Pvt. Ltd. vs. DCIT in ITA No. 315/Bang/2021 (order dated 12.10.2021)  Shri Gopalkrishna Aswini Kumar vs. ACIT in ITA No. 359/Bang/2021 (order dated 13.10.2021) 5. The learned Departmental Representative suppo…

M/S. Optimal Strategix Consulting Private Limited, Bangalore vs. Deputy Commissioner of Income-Tax, Circle-3(1)(1), Bangalore

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

Bench: Shri Chandra Poojariassessment 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…

Bharat Silks, Bangalore vs. National E-Assessment Centre, Delhi

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

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Assessment Year : 2018-19 M/s. Bharat Silks, 154, Bommasandra The National e- Industrial Area, Assessment Bommasandra, Centre, Bangalore – 560 099. Delhi. Vs. PAN: AADFB0871B APPELLANT RESPONDENT : Shri Joseph Varghese, Assessee by Advocate : Shri K.R. Narayana, Addl. Revenue by CIT (DR) Date of Hearing : 22-09-2022 Date of Pronouncement : 22-09-2022 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal by the assessee has been filed by assessee against the order date…

M/S. Daxer Trading Private Limited, Bangalore vs. Assistant Director of Income Tax, CPC, Bangalore

In the result, the assessee’s appeal is partly allowed

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Year : 2020-21

…which is placed on record. He further submitted that the amendment made in the Finance Act 2021 is prospective in nature. He also relied on the judgment of Hon’ble jurisdictional High Court in the case of Essae Page 3 of 6 Teraoka Pvt. Ltd., Vs. DCIT [2014] 366 ITR 408/222 Taxman 170/32 taxmann.com 33 (Kar). 3. On the other hand, the ld.DR supported the order of the lower authorities and he vehemently submitted that there was clear provision in the Income-tax Act u/s 36(1)(va) in this regard. Once the assessee received the employees contribution firstly it is created as income of the assessee u/s 2(24)(x) and…

Arnold Consulting Private Limited, Bengaluru vs. Assistant Commissioner of Income Tax, Circle-1(1), Bengaluru

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

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Year: 2017-18

…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…

Zynga Game Network India 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 & Ms. Padmavathy S.M/S. Zynga Game Network Vs Dcit, Circle -7(1)(1) India Pvt. Ltd. Bmtc Building, 80 Feet Road No. 19, Prestige Falcon Tower Koramangala 4Th & 5Th Floor, Brunton Bengaluru 560095 Road, Richmond Town Bengaluru 560025 Pan – Aaacz3937G (Appellant) (Respondent) Assessee By: Shri Ankur Pai, Advocate Revenue By: Shri K.R. Narayan, Addl. Cit-Dr Date Of Hearing: 12/09/2022 Date Of Pronouncement: 20/09/2022 O R D E R Per: Padmavathy, A.M. This Is An Appeal Filed By The Assessee Against The Order Of The Learned Cit(A), Nfac, Delhi In Appeal No. Nfac/2019-20/10054666 Dated 16.06.2022 For Ay 2020-21. 2. The Assessee Has Raised The Following Grounds Of Appeal: - “1. The Learned Assistant Director Of Income Tax, Cpc / Learned Commissioner Of Income-Tax (Appeals) ["Cit(A)"] Has Erred In Disallowing The Delayed Remittance Of The Employees Contribution To Pf Without Appreciating That The Appellant Had Remitted The Same Before The Due Date For Filing Of Return Of Income Under Section 139(1) Of The Act.

…ed the 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 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 Act. The Hon'ble jurisdictional High Court differed with the judgment of the Hon'ble Gujarat High Court in the case of CIT v. Gujarat S…

Sri Rajanikanth Reddy, Bengaluru vs. The Income Tax Officer, Ward-4(2)(2), Bangalore

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

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S.Shri Rajanikanth Reddy Vs The Income Tax Officer- 4(2)(2) No.21, 14Th Main, Venkateshwara Bengaluru Layout, Madiwala Bengaluru 560068 Pan – Ablpr5981K (Appellant) (Respondent) Assessee By: Ms. Sunaina Bhatia, Advocate Revenue By: Shri K.R. Narayan, Addl. Cit-Dr Date Of Hearing: 13/09/2022 Date Of Pronouncement: 20/09/2022 O R D E R Per: Padmavathy, A.M. This Is An Appeal Filed By The Assessee Against The Order Of The Learned Cit(A), Nfac, Delhi In Appeal No. Cit(A)/Bengaluru-4/10069/2020-21 Dated 25.05.2022 For Ay 2018-19. 2. The Assessee Has Raised The Following Grounds Of Appeal: - “1. The Order Of The Authorities Below In So Far As They Are Against The Appellant Are Opposed To Law, Equity, Weight Of Evidence, Probabilities, Facts & Circumstances Of The Case. 2. The Learned Commissioner Of Income Tax [Appeals] / National Faceless Appeal Centre [Nfac For Short] Is Not Justified In Upholding The Determination Of Total Income Of Appellant In The Order U/S. 154 Of The Act, At Rs. 1,92,26,970/- As Against The Returned Income Of Rs. 1,09,63,817/-, Under The Normal Provisions, On Account Of The Disallowance Of Rs. 82,63,148/- Made U/S.36[1][Va] Of The Act, Based Upon The Details In The Tax Audit

…eciated that the aforesaid disallowance of Rs. 82,63,148/- 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 EssaeTeroka Limited reported in 366 ITR 408 [Kar] 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] / 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 insertion…

Sri Family Biznet Private Limited, 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

…provisions of section 43B of the I.T.Act. In this context, the assessee relied on the judgment of the Hon’ble jurisdictional 3 ITA No.590/Bang/2022. M/s.Sri Family Biznet Private Limited. 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) noticed the difference between employer and employee contribution to PF and ESI and held that only employers contribution to PF and ESI is entitled to deduction u/s 43B of the I.T.Act, if the same is paid prior to due date of filing of return of income u/s 139(1) of the…

Private Eye Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

In the result, the appeal by the assessee is allowed

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy Sassessment Year : 2020-21

…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 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 139 of the I…

Mr. G R Chandrashekar Naidu, Bengaluru vs. Assistant Director of Income Tax, CPC, Bangalore

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

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

…ibution of PF and ESI having regard to the provision to section 43B of the Act. In this context, the assessee relied on 3 Sri G.R.Chandrashekar Naidu. 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. Mittal Clothing Company, Bengaluru vs. Deputy Commissioner of Income Tax, CPC, Bengaluru

In the result, the assessee’s appeal is allowed in above terms

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Year : 2018-29

…re the CIT(A) which is placed on record. He further submitted that the amendment made in the Finance Act 2021 is prospective in nature. He also relied on the judgment of Hon’ble jurisdictional High Court in the case of Essae Teraoka Pvt. Ltd., Vs. DCIT [2014] 366 ITR 408/222 Taxman 170/32 taxmann.com 33 (Kar). 4. On the other hand, the ld.DR supported the order of the lower authorities and he vehemently submitted that there was clear provision in the Income-tax Act u/s 36(1)(va) in this regard. Once the assessee received the employees contribution firstly it is created as income of the assessee u/s 2(24)(x) and…

M/S. Aquasns Fashions Private Limited, Bangalore vs. Assistant Director of Income Tax, CPC, Bangalore

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

Bench: Shri Chandra Poojari

…employees' contribution to ESI 3 ITA No.586/Bang/2022. M/s.Aquasns Fashions Private Limited. 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 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…