M/s Brandix India Apparel India (P) Ltd.,, Visakhapatnam v. THE DCIT,, Visakhapatnam

CO 18/VIZ/2016 | 2010-2011
Pronouncement Date: 26-10-2016 | Result: Dismissed

Appeal Details

RSA Number 1825323 RSA 2016
Assessee PAN AACCB6569L
Bench Visakhapatnam
Appeal Number CO 18/VIZ/2016
Duration Of Justice 6 month(s) 25 day(s)
Appellant M/s Brandix India Apparel India (P) Ltd.,, Visakhapatnam
Respondent THE DCIT,, Visakhapatnam
Appeal Type Cross Objection
Pronouncement Date 26-10-2016
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 26-10-2016
Assessment Year 2010-2011
Appeal Filed On 01-04-2016
Judgment Text
ITA NO.64/VIZAG/2015 & CO 18/VIZAG/2016 M/S. BRANDIX INDIA PVT. LTD. VSKP 1 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM . . $ BEFORE SHRI V. DURGA RAO JUDICIAL MEMBER & SHRI G. MANJUNATHA ACCOUNTANT MEMBER ./I.T.A.NO.64/VIZAG/2015 ( / ASSESSMENT YEAR: 2010-11) DCIT CIRCLE - 5(1) VISAKHAPATNAM VS. M/S. BRANDIX APPAREL INDIA (PVT) LTD. VISAKHAPATNAM [PAN: AACCB6569L ] ( % / APPELLANT) ( &'% / RESPONDENT) C.O. NO.18/VIZAG/2016 (ARISING OUT OF I.T.A.NO.64/VIZAG/2015) ( / ASSESSMENT YEAR: 2010-11) M/S. BRANDIX APPAREL INDIA (PVT) LTD. VISAKHAPATNAM VS. DCIT CIRCLE - 5(1) VISAKHAPATNAM ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI M.K. SETHI DR / RESPONDENT BY : SHRI G.V.N. HARI AR / DATE OF HEARING : 20.09.2016 / DATE OF PRONOUNCEMENT : 26.10.2016 ITA NO.64/VIZAG/2015 & CO 18/VIZAG/2016 M/S. BRANDIX INDIA PVT. LTD. VSKP 2 / O R D E R PER V. DURGA RAO JUDICIAL MEMBER: THIS APPEAL FILED BY REVENUE IS DIRECTED AGAINST T HE ORDER OF CIT(A)-1 VISAKHAPATNAM DATED 9.12.2014 FOR THE ASS ESSMENT YEAR 2010-11 AND THE CROSS OBJECTION FILED BY THE ASSESS EE IS IN SUPPORT OF THE ORDER PASSED BY THE CIT(A). 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS THE PA YMENT MADE TOWARDS PROVIDENT FUND ACCOUNT AFTER DUE DATE AS PR ESCRIBED UNDER THE PROVIDENT FUND ACT BUT PAID BEFORE THE DUE DATE OF FILING OF RETURN OF INCOME U/S 139(1) OF THE INCOME TAX ACT 1961 (HERE INAFTER CALLED AS 'THE ACT') ALLOWABLE AS A DEDUCTION OR NOT. 3. THE LD. CIT(A) BY FOLLOWING THE VARIOUS JUDICIAL PRECEDENTS HE HAS DIRECTED THE A.O. TO ALLOW THE DEDUCTION U/S 43B OF THE ACT. THE RELEVANT PORTION OF THE ORDER IS EXTRACTED AS UNDER : 5. I HAVE CONSIDERED THE SUBMISSIONS MADE. THE ASSE SSEE HAS RAISED VARIOUS GROUNDS BUT THE ISSUE FOR RESOLUTION IS WHE THER THE AMOUNT OF RS.83 98 238/- REPRESENTING EMPLOYEES CONTRIBUTION TO PF WAS ALLOWABLE DEDUCTION EVEN IT WAS PAID INTO THE PF ACCOUNT BY THE EMPLOYER AFTER THE DUE DATE PRESCRIBED UNDER THE PF ACT BUT BEFORE THE DUE DATE FOR FILING OF THE RETURN OF INCOME U/S.139(1) OF THE INCOME-TAX A CT. THE CONSEQUENT ISSUE IS WHETHER SUCH DISALLOWANCE COULD BE ASSESSE D UNDER THE HEAD OTHER SOURCES SO AS TO DENY EXEMPTION U/S.10AA IN RESPECT OF SUCH AMOUNT. IT WOULD BE RELEVANT TO REFER TO SOME OF THE JUDICIAL PRONOUNCEMENTS ON THE MAIN ISSUE. ITA NO.64/VIZAG/2015 & CO 18/VIZAG/2016 M/S. BRANDIX INDIA PVT. LTD. VSKP 3 5.1 IT IS NOTED THAT IN THE CASE OF ESSAE TERAOKA (P ) LTD VS. DCIT 43 TAXMANN 33 THE HONOURABLE KARNATAKA HIGH COURT TOO K THE VIEW THAT THE WORD CONTRIBUTION OCCURRING IN SECTION 43B OF THE I. T. ACT WOULD INCLUDE EMPLOYEES CONTRIBUTION TO PF IN THE LIGHT OF THE D EFINITION OF THE WORD 'CONTRIBUTION' BY SECTION 2(C) OF P.F. ACT AS PER WHICH CONTRIBUTION WOULD MEAN BOTH THE EMPLOYERS CONTRIBUTION AND EMPLOYEES CONTRIBUTION. ACCORDINGLY IT WAS HELD THAT THE PROVISION OF SECT ION 43B ALLOWING DEDUCTION FOR PAYMENT MADE BEFORE THE FILING OF THE INCOME-TAX RETURN CANNOT BE IGNORED. IN THE CASE OF CLI VS. KICHHA SUG AR CO.LTD 35 TAXMANN 54 THE HONOURABLE HIGH COURT OF UTTARAKHAN D HELD THAT THE DUE DATE REFERRED IN SECTION 36(V)(A) SHOULD BE READ IN CONJUNCTION WITH SECTION 43B(B) OF THE INCOME-TAX ACT AND THAT DEDU CTION SHOULD BE ALLOWED FOR PAYMENT MADE BEFORE THE DUE DATE FOR FI LING OF THE RETURN OF INCOME. IN THE CASE OF CIT VS. UDAIPUR RAJASTHAN AF TER REFERRING. TO THE APEX COURT DECISION IN THE CASE OF CIT VS. EXTRUSIO NS LTD (319 ITRA 306) & CIT VS. VINAY CEMENT LTD. HELD THAT THE DEDUCTIO N SHOULD BE ALLOWED FOR THE PAYMENT OF EMPLOYEES CONTRIBUTION MADE BEFO RE THE DUE DATE OF FILING OF RETURN. SIMILARLY IN THE CASE OF CIT VS. STATE BANK OF BIKANER THE HONOURABLE RAJASTHAN HIGH COURT HELD THAT THE P.F. CONTRIBUTION PAID AFTER THE DUE DATE UNDER THE RESPECTIVE ACT BUT BEFORE FI LING OF THE RETURN OF INCOME U/S.139(1) CANNOT BE DISALLOWED U/S 43B OR U /S.36(1)(V)(A) OF THE INCOME-TAX ACT. SIMILAR VIEWS WERE TAKEN BY THE HONO URABLE CALCUTTA HIGH COURT IN THE CASE OF CIT VS. VIJAY SHREE LTD. 43 TAXMANN 396 THE HONOURABLE DELHI HIGH COURT IN THE CASE OF CIT VS. DHARMENDRA SHARMA 297 ITR 328 THE HONOURABLE MADRAS HIGH COURT IN TH E CASE OF CIT VS. NEXUS COMPUTER PVT. LTD. 313 ITR 144 AND THE HONOU RABLE HIMACHAL PRADESH HIGH COURT IN THE CASE OF CIT VS. NIPSO POL Y FABRIC PVT LTD. THE HONOURBLE ITAT MUMBAI PUNE CHENNAI HAVE TAKEN SI MILAR VIEWS. IN THE LIGHT OF THE ABOVE JUDICIAL PRONOUNCEMENTS IT IS H ELD THAT THE ASSESSEE WOULD BE ENTITLED FOR DEDUCTION OF THE EMPLOYEES CO NTRIBUTION OF R.F. MADE BEFORE THE DUE DATE OF FILING OF THE RETURN OF INCOME U/S.139(1) OF THE INCOME-TAX ACT. THE ASSESSING OFFICER IS DIRECTE D TO RECOMPUT2 THE TOTAL INCOME ACCORDINGLY. AS THE IMPUGNED AMOUNT IS HELD TO BE ALLOWABLE AS DEDUCTION U/S 43B THE OTHER ISSUE RELATING TO C LAIM OF EXEMPTION U/S.1OAA BECOMES ACADEMIC. 4. WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE L D. CIT(A). THIS GROUND OF APPEAL RAISED BY THE REVENUE IS DISMISSED . 5. THE CROSS OBJECTION RAISED BY THE ASSESSEE IS TI ME BARRED BY 275 DAYS. NO REASONABLE EXPLANATION IS GIVEN AND NO AF FIDAVIT IS FILED FOR THIS DELAY. THUS THE SAME IS DISMISSED. ITA NO.64/VIZAG/2015 & CO 18/VIZAG/2016 M/S. BRANDIX INDIA PVT. LTD. VSKP 4 6. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED AND THE CROSS OBJECTION FILED BY THE ASSESSEE IS ALSO DISMI SSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 26 TH OCT16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 26.10.2016 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE DCIT CIRCLE-5(1) VISAKHAPA TNAM 2. / THE RESPONDENT M/S. BRANDIX APPAREL INDIA (P) LTD. PUDIMADAKA ROAD ATCHUTHAPURAM VISAKHAPATNAM 3. ) / THE CIT VISAKHAPATNAM 4. ) ( ) / THE CIT(A)-1 VISAKHAPATNAM 5. ! ! / DR ITAT VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 (SR.PRIVATE SECRETARY) ! / ITAT VISAKHAPATNAM