ACIT, New Delhi v. M/s. SQL Star International Ltd., New Delhi

ITA 1327/DEL/2010 | 2005-2006
Pronouncement Date: 26-05-2010 | Result: Dismissed

Appeal Details

RSA Number 132720114 RSA 2010
Assessee PAN AAACS0372C
Bench Delhi
Appeal Number ITA 1327/DEL/2010
Duration Of Justice 2 month(s)
Appellant ACIT, New Delhi
Respondent M/s. SQL Star International Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 26-05-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 26-05-2010
Assessment Year 2005-2006
Appeal Filed On 26-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G : NEW DELHI BEFORE SHRI R.P.TOLANI AND SHRI K.D.RANJAN ITA NO.1327/DEL/2010 ASSESSMENT YEAR : 2005-06 ACIT CIRCLE 9(1) NEW DELHI. VS. M/S SQL STAR INTERNATIONAL LTD. 3 RD FLOOR ANDHRA ASSOCIATION BUILDING 24-25 INSTITUTIONAL AREA LODHI ROAD NEW DELHI. PAN AAACS0372C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI KISHORE B. SR. D.R. RESPONDENT BY : NONE ORDER PER K.D.RANJAN AM: THIS APPEAL BY THE REVENUE FOR ASSESSMENT YEAR 2005 -06 ARISES OUT OF ORDER OF LD. CIT(A)-XII NEW DELHI. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE REPRODUCED AS UNDER: 1. LD. COMMISSIONER OF INCOME TAX(APPEALS) ERRED I N LAW AND ON THE FACTS AND CIRCUMSTANCES OF THE CASE IN DELE TING THE ADDITION OF RS.16 34 473/- MADE BY THE A.O. ON ACCO UNT OF LATE PAYMENT OF EMPLOYEES CONTRIBUTION TOWARDS PF & ESI . 2. THE APPELLANT CRAVES TO AMEND MODIFY ALTER ADD OR FOREGO ANY GROUND OF APPEAL AT ANY TIME BEFORE OR DURING THE H EARING OF THIS APPEAL. 2. THE ONLY ISSUE FOR CONSIDERATION RELATES TO DELE TING THE ADDITION OF RS.16 34 473/- MADE BY ASSESSING OFFICER ON ACCOUNT OF LATE PAYMENT OF 2 EMPLOYEES CONTRIBUTION TOWARDS PF & ESI WITHIN THE DUE DATE AS PRESCRIBED IN THE RELEVANT ACT. THE ASSESSING OFFICER THEREFO RE TREATED THE AMOUNT OF RS. 16 34 473/- AS INCOME OF THE ASSESSEE U/S 36(1) (VA) READ WITH SEC. 2(24)(X) OF THE I.T.ACT 1961. 3. ON APPEAL IT WAS SUBMITTED THAT THE PAYMENTS WE RE MADE BEFORE FILING THE RETURN OF INCOME AND THEREFORE NO DISALLOWANC E COULD BE MADE. THE ASSESSEE PLACED RELIANCE ON SEVERAL DECISIONS INCLU DING THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF P.M.ELECTRO NICS LTD. 220 CTR 635. THE LD. CIT(A) WHILE DECIDING THE ISSUE NOTED THAT PAYMENT OF EACH MONTH HAD BEEN VERIFIED AND THE CLAIM OF ASSESSEE WAS FOU ND TO BE CORRECT. SHE ACCORDINGLY DELETED THE ADDITION. 4. BEFORE US NONE ATTENDED ON BEHALF OF THE ASSESS EE. SINCE THE ISSUE IS COVERED BY THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF P.M.ELECTRONICS LTD. (SUPRA) THE ISSUE IS DECIDED AFTER HEARING THE LD. SR. D.R. 5. WE HAVE HEARD THE LD. SR. D.R. AND GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. THE ASSESSING OFFICER DISALLOW ED THE AMOUNT OF RS.16 34 473/- ON THE GROUND THAT PAYMENT WAS NOT M ADE WITHIN THE DUE DATE. HOWEVER ON APPEAL THE LD. CIT(A) VERIFIED T HE DETAILS AND HAS RECORDED A FINDING THAT PAYMENT WAS MADE BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME. WE FIND THAT THIS ISSUE IS COVERE D BY THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF CIT V. P.M. ELECTRONICS LTD. (SUPRA) WHEREIN IT HAS BEEN HELD THAT WHERE PAYMENT ON ACCO UNT OF EMPLOYEES/EMPLOYERS CONTRIBUTION TOWARDS PF & ESI ARE MADE BEFORE THE DUE DATE OF FILING OF THE RETURN NO ADDITION/DISAL LOWANCE CAN BE MADE. 3 RESPECTFULLY FOLLOWING THE DECISION OF HON'BLE DEL HI HIGH COURT IN THE CASE OF CIT VS. P.M.ELECTRONICS LTD. (SUPRA) WE DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. ACCORDINGLY WE D O NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A) DELETING THE ADDITION. 6. IN THE RESULT THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CLOSE OF THE HEARING ON 26/5/2010 SD/- SD/- ( R.P.TOLANI) (KD.RANJAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 26.05.2010. PSP COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT DEPUTY REGISTRAR