Daywell Pharmaceuticals Pvt.Ltd., Ahmedabad v. The Dy.CIT.(OSD),Range-1,, Ahmedabad

ITA 429/AHD/2011 | 2007-2008
Pronouncement Date: 22-07-2011 | Result: Allowed

Appeal Details

RSA Number 42920514 RSA 2011
Assessee PAN AAACD7435K
Bench Ahmedabad
Appeal Number ITA 429/AHD/2011
Duration Of Justice 5 month(s) 6 day(s)
Appellant Daywell Pharmaceuticals Pvt.Ltd., Ahmedabad
Respondent The Dy.CIT.(OSD),Range-1,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 22-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 22-07-2011
Assessment Year 2007-2008
Appeal Filed On 15-02-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER AND SHRI A.N. PAHUJA ACCOUNTANT MEMBER DATE OF HEARING : 15/07/2011 DRAFTED ON: 1 8/07/2011 ITA NO.429/AHD/2011 ASSESSMENT YEAR : 2007-08 DAYWELL PHARMACEUTICALS PVT.LTD. PLOT NO.3491 PHASE-IV CHHATRAL AHMEDABAD VS. DY.CIT (OSD) RANGE-1 AHMEDABAD PAN/GIR NO. : AAACD 7435 K ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI SUNIL H.TALATI A.R. RESPONDENT BY: SHRI B.L. YADAV D.R. O R D E R PER SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE ASSESSEE WHICH HAS EMANATED FROM THE ORDER OF LEARNED CIT(APPEALS)-VI AHMEDABAD DATED 10/01/2011 PASSED FOR ASSESSMENT YEAR 2007-08 AND T HE SOLITARY SUBSTANTIAL GROUND READS AS UNDER:- 1. THE LEARNED C.I.T. (APPEALS) HAS ERRED IN UPHOL DING THE ACTION OF ASSESSING OFFICER IN DISALLOWING THE DEDUCTION O F RS.22 164/- U/S.43B FOR LAST PAYMENT OF EMPLOYEES CONTRIBUTION TO PF / ESIC. IT IS SUBMITTED THAT THE LEARNED CIT(A) HAD GRAVELY ERRED IN NEGLECTING THE JUDICIAL PRECEDENTS ESTABLISHED FROM THE DECISIONS OF VARIOUS HIGH COURTS AND SUPREME COURT IN THE CASE O F ALOM EXTRUSION. IT IS SUBMITTED THAT HE ADDITION CONFIR MED BE DELETED. ITA NO .429/AHD/2011 DAYWELL PHARMACEUTICALS P.LTD. VS. DY.CIT ASST.YEAR - 2007-08 - 2 - 2. PARTIES APPEARING BEFORE US INFORMED THAT THIS I SSUE NOW STOOD COVERED BY THE DECISION OF HON'BLE SUPREME COURT IN THE CASE OF CIT VS. VINAY CEMENT LTD. REPORTED AT (2007) 213 CTR 268 (SC) AND ALOM EXTRUSION 319 ITR 306 (S.C.). MOREOVER IT HAS A LSO BEEN INFORMED THAT RESPECTED CO-ORDINATE BENCH B AHMEDABAD IN THE CA SE OF LIBERTY PHOSPHATE LTD. VS. ACIT BEARING ITA NO.4162/AHD/200 8 (A.Y. 2005- 06) ORDER DATED 23/01/2009 HAS HELD AS UNDER:- 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIAL AVAILABLE ON RECORD. IN THE INSTANT CASE DEDUCTION FOR EMPLOYEES CONTRIBU TION PAID TO PF AND ESIC RS.62 017/- AND RS.8 209/- RESPECTIVELY WE RE DISALLOWED DEDUCTION IN THE COMPUTATION OF THE INCOME OF THE A SSESSEE AS THEY WERE PAID BEYOND THE DUE DATE PRESCRIBED UNDER THE PF AND ESIC ACT. THE CONTENTION OF THE ASSESSEE IS THAT IN VIE W THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF VINAY CEME NT LTD. (SUPRA) AND THE DECISION OF THE AHMEDABAD BENCH OF THE TRIBUNAL IN THE CASE OF M/S. J.M.C.PROJECTS INDIA LTD. (SUPR A) THE DEDUCTION WAS ALLOWABLE TO THE ASSESSEE AS THE PAYMENT WAS MA DE BEFORE THE DUE DATE OF THE FILLING OF RETURN OF INCOME. WE FI ND FROM THE ASSESSMENT ORDER IT IS NOT IN DISPUTE THAT THE AMOU NT IN QUESTION WERE DEPOSITED BY THE ASSESSEE IN THE RELEVANT FINA NCIAL YEAR BEFORE THE DUE DATE PROVIDED U/S.139(1) OF THE ACT. WE FIND THAT THE AHMEDABAD BENCH OF THE TRIBUNAL HAS HELD THAT A S PER PARA- 38 OF THE EMPLOYEES PF SCHEME THE EMPLOYER IS REQ UIRED TO REMIT BOTH THE EMPLOYEES AS WELL AS THE EMPLOYERS SHARE OF CONTRIBUTION TOGETHER WITH ADMINISTRATIVE CHARGES T HEREON BEFORE THE CLOSE OF 15 TH OF EVERY MONTH AND THEREFORE IT WAS HELD THAT EMPLOYEES CONTRIBUTION TO PF AND ESIC IS ALSO THE LIABILITY OF THE EMPLOYER WHICH IS COVERED BY THE PROVISIONS OF SECT ION 43B OF THE ACT AND THE SAME HAVING BEEN PAID BY THE ASSESSEE W ITHIN THE DUE DATE OF FILLING OF THE RETURN OF THE YEAR IN CONSID ERATION WAS ALLOWABLE DEDUCTION TO THE ASSESSEE. WE FIND THAT THE FACTS IN THE CASE BEFORE US ARE IDENTICAL TO THE FACTS THAT WERE BEFORE THE AHMEDABAD BENCH OF THE TRIBUNAL. WE ALSO OBSERVE T HAT THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE O F VINAY ITA NO .429/AHD/2011 DAYWELL PHARMACEUTICALS P.LTD. VS. DY.CIT ASST.YEAR - 2007-08 - 3 - CEMENT (SUPRA) APPROVED THE ABOVE DECISION OF THE A HMEDABAD BENCH OF THE TRIBUNAL. THE LD. D.R. COULD NOT CITE ANY GOOD REASON FOR NOT FOLLOWING THE SAID ORDER OF THE TRIB UNAL. HENCE FOLLOWING THE SAME WE DELETE THE DISALLOWANCE OF R S.64 012/- AND RS.8 209/- MADE ON ACCOUNT OF EMPLOYEES CONTRIBUT ION TO PF AND ESIC MADE BY THE ASSESSEE. THUS THIS GROUND IS AL LOWED. 3. IN VIEW OF THE ABOVE DECISIONS THIS GROUND OF T HE ASSESSEE IS HEREBY ALLOWED. 4. IN THE RESULT THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER SIGNED DATED AND PRONOUNCED IN THE COURT ON 22 ND JULY 2011. SD/- SD/- ( A.N. PAHUJA ) ( MU KUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBE R AHMEDABAD; DATED 22 ND JULY 2011 T.C. NAIR SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE ASSESSEE. 2. THE DEPARTMENT. 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-VI AHMEDABAD 5. THE DR AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSTT.REGISTRAR) ITAT AHMEDABAD ITA NO .429/AHD/2011 DAYWELL PHARMACEUTICALS P.LTD. VS. DY.CIT ASST.YEAR - 2007-08 - 4 - 1. DATE OF DICTATION..18/07/2011 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18/07/2011 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S22/7/11 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 22/7/11 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 9. DATE OF DESPATCH OF THE ORDER