ACIT, Kota v. M/S INSTRUMENTATION LTD., Kota

ITA 542/JPR/2012 | 2005-2006
Pronouncement Date: 28-11-2014 | Result: Dismissed

Appeal Details

RSA Number 54223114 RSA 2012
Assessee PAN AAACL4212G
Bench Jaipur
Appeal Number ITA 542/JPR/2012
Duration Of Justice 2 year(s) 5 month(s) 23 day(s)
Appellant ACIT, Kota
Respondent M/S INSTRUMENTATION LTD., Kota
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 28-11-2014
Assessment Year 2005-2006
Appeal Filed On 04-06-2012
Judgment Text
IN THE INCOMETAX APPELLATE TRIBUNAL JAIPUR BENCH: JAIPUR (BEFORE SHRI R.P. TOLANI AND SHRI T.R. MEENA) I.T.A. NOS. 542 & 543/JP/2012 ASSTT. YEARS- 2005-06 & 2006-07 PAN NO. AAACL 4212 G THE A.C.I.T. M/S INSTRUMENTATION LTD. CIRCLE-1 KOTA. VRS. JHALAWAR ROAD KOTA. (APPELLANT) (RESPONDENT) C.O. NOS. 52 & 53/JP/2012 (ARISING OUT OF I.T.A. NOS. 542 & 543/JP/2012) ASSTT. YEARS- 2005-06 & 2006-07 PAN NO. AAACL 4212 G M/S INSTRUMENTATION LTD. THE D.C.I.T. JHALAWAR ROAD KOTA. VRS. CIRCLE-1 KOTA. (OBJECTOR) (RESPONDENT) DEPARTMENT BY :- SHRI A.K. KHANDELWAL. ASSESSEE BY :- SHRI P.C. PARWAL. DATE OF HEARING : 29/10/2014 DATE OF PRONOUNCEMENT : 28/11/2014 O R D E R PER: T.R. MEENA A.M. BOTH THE APPEALS FILED BY REVENUE AND CROSS OBJECT IONS BY ASSESSEE ARISE FROM THE ORDER DATED 26/03/2012 OF LD. CIT (A )-KOTA. THE EFFECTIVE GROUNDS OF APPEALS AS WELL AS CROSS OBJECTIONS ARE A S UNDER:- ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 2 GROUNDS OF ITA NO. 542/JP/2012 A.Y. 2005-06 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED IN: (I) DELETING THE DISALLOWANCE OF RS. 83 74 416/- ON ACCOUNT OF PROVISIONAL FOR CONTRACTUAL OBLIGATION; (II) DELETING THE ADDITION OF RS. 15 13 168/- ON AC COUNT OF GUEST HOUSE EXPENSES; (III) DELETING THE ADDITION OF RS. 14 32 645/- ON A CCOUNT OF GIFT AND PRESENT EXPENSES BY APPLYING RULE 6B OF I T ACT; (IV) RESTRICTING THE DISALLOWANCE OF RS. 1 65 61 645 /- ON ACCOUNT OF PAYMENT OF PF CONTRIBUTION; (V) THE APPELLANT CRAVES LIBERTY TO RAISE ADDITIONA L GROUND AND TO MODIFY/AMEND THE GROUND OF APPEAL AT THE TI ME OF HEARING. GROUNDS OF C.O. 52/JP/2012 A.Y. 2005-06 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING DISALLO WANCE OF RS. 7 57 32 300/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DELAY IN DEPOSITION OF EMPLOYEES CONTRIBUTION OF PF FOR THE YEAR UNDER CONSIDERATION U/S 36(1)(VA). 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) HAS ERRED ON FACTS AND IN LAW IN NOT ALLOWING DEDUCTI ON OF RS. 9 74 86 421/- ON ACCOUNT OF EMPLOYEES CONTRIBUTION TO PF OF A.Y. 2003-04 AND 2004-05 MADE DURING THE YEAR BY HOLDING THAT SAME IS NOT ALLOWABL E U/S 36(1)(VA). ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 3 3. THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL) H AS ERRED ON FACTS AND IN LAW IN CONFIRMING ADDITION OF RS. 83 77 416/- MADE BY THE ASSESSING OFFICER ON ACCOUN T OF DISALLOWANCE OF PROVISION FOR CONTRACTUAL OBLIGAT ION. 3.1 HE HAS FURTHER ERRED ON FACTS AND IN LAW IN CO NFIRMING THE DISALLOWANCE OF PROVISION FOR CONTRACTUAL OBLIGA TION IGNORING THAT SUCH PROVISION HAS BEEN ALLOWED TO THE ASSESSEE IN EARLIER YEARS BY HONBLE ITAT. 4. THE ASSESSEE CRAVES RIGHT TO ADD ALTER AMEND AND MODIFY ANY OF THE GROUND OF APPEAL. 5. NECESSARY COST BE ALLOWED TO THE ASSESSEE. GROUNDS OF ITA NO. 543/JP/2012 A.Y. 2006-07 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED IN: (I) DELETING THE DISALLOWANCE OF RS. 47 17 143/- ON ACCOUNT OF PROVISIONAL FOR CONTRACTUAL OBLIGATION; (II) DELETING THE ADDITION OF RS. 16 40 464/- ON AC COUNT OF GUEST HOUSE EXPENSES; (III) DELETING THE ADDITION OF RS. 31 47 722/- ON A CCOUNT OF GIFT AND PRESENT EXPENSES BY APPLYING RULE 6B OF IT ACT; (IV) THE APPELLANT CRAVES LIBERTY TO RAISE ADDITION AL GROUND AND TO MODIFY/AMEND THE GROUND OF APPEAL AT THE T IME OF HEARING. ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 4 GROUNDS OF C.O. 53/JP/2012 A.Y. 2006-07 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING DISALLO WANCE OF RS. 3 39 38 290/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DELAY IN DEPOSITION OF EMPLOYEES CONTRIBUTION OF PF U/S 36(1)(VA). 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING ADDITIO N OF RS. 47 17 143/- MADE BY ASSESSING OFFICER ON ACCOUN T OF DISALLOWANCE OF PROVISION FOR CONTRACTUAL OBLIGAT ION. 2.1. HE HAS FURTHER ERRED ON FACTS AND IN LAW IN C ONFIRMING THE DISALLOWANCE OF PROVISION FOR CONTRACTUAL OBLIGA TION IGNORING THAT SUCH PROVISION HAS BEEN ALLOWED TO THE ASSESSEE IN EARLIER YEARS BY THE HONBLE ITAT 3. THE ASSESSEE CRAVES RIGHT TO ADD ALTER AMEND AND MODIFY ANY OF THE GROUND OF APPEAL. 4. NECESSARY COST BE ALLOWED TO THE ASSESSEE. 2. GROUND NO. (I) OF REVENUES APPEALS FOR A.Y. 200 5-06 & 2006-07 GROUND NOS. 3 AND 3.1 OF ASSESSEES C.O. FOR A.Y. 2 005-06 AND GROUND NO. 2 AND 2.1 OF 2006-07 ARE AGAINST DELETING THE DISAL LOWANCE OF RS. 83 74 416/- IN A.Y. 2005-06 AND RS. 47 17 143/- IN A.Y. 2006-07 ON ACCOUNT OF PROVISION FOR CONTRACTUAL OBLIGATION. THE ASSESSING OFFICER OBSERVED AS UNDER:- ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 5 AN AMOUNT OF RS. 83 77 416/- HAS BEEN PROVIDED FOR CONTRACTUAL OBLIGATION AS PER SCHEDULE 18 IN THE RETURN OF INCO ME. THE PROVISIONS UNDER THIS HEAD WERE ALSO DISALLOWED IN TH E PRECEDING YEARS. IN THIS CONTEXT THE ASSESSEE STATED THAT TH E ITAT HAS ALLOWED THE CONTRACTUAL OBLIGATION AS BUSINESS EXPEN DITURE IN ASSESSEE OWN CASE. SINCE THE DEPARTMENT HAS GONE IN APPEAL BEFORE THE RAJASTHAN HIGH COURT AGAINST THE DECISIO N OF THE ITAT. AS SUCH THE AMOUNT OF RS. 83 77 416/- IS DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. THE SAME FINDING HAS BEEN GIVEN BY THE LEARNED ASSES SING OFFICER IN A.Y. 2006-07 AND AMOUNT OF RS. 47 17 143/- WAS DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. 3. BEING AGGRIEVED THE ORDER THE LEARNED ASSESSING OFFICER THE ASSESSEE CARRIED THE MATTER BEFORE THE LEARNED CIT( A) WHO HAD DELETED THE ADDITION BY OBSERVING AS UNDER:- THE A.O. MADE THE DISALLOWANCE ON THE GROUND THAT TH E DEPARTMENT HAS FILED APPEAL BEFORE HONBLE JURISDIC TIONAL HIGH COURT ON THIS ISSUE. THE A.O. IS THEREFORE JUSTIFIE D IN MAKING ADDITION ON ACCOUNT OF DISALLOWANCE OF PROVISION FOR CONTRACTUAL OBLIGATION. HOWEVER AS INTIMATED BY APPELLANT DURI NG THE YEAR SUM OF RS. 1 21 42 091/- WAS ALSO WRITTEN BACK ON ACC OUNT OF CONTRACTUAL OBLIGATION WHICH HAS NOT BEEN CONSIDERE D BY THE A.O.. AFTER EXCLUDING THIS AMOUNT NO ADDITION IS JUSTIFI ED FOR THIS YEAR UNDER THIS HEAD. ADDITION OF RS. 83 74 416/- MADE B Y THE A.O. IS DIRECTED TO BE DELETED. ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 6 THE SAME FINDING HAS BEEN GIVEN BY THE LEARNED ASSES SING OFFICER IN A.Y. 2006-07 AND ADDITION OF RS. 47 17 143/- MADE BY HIM IS DIRECTED TO BE DELETED BY THE LEARNED CIT(A). 4. NOW THE REVENUE ARE IN APPEALS AND THE ASSESSEE A RE IN C.O. BEFORE US. 5. THE LEARNED A.R. FOR THE ASSESSEE SUBMITTED THAT THIS ISSUE IS COVERED BY THE ITAT B BENCH JAIPUR DECISION IN TH E ASSESSEES OWN CASE IN ITA NO. 331/JP/2011 A.Y. 2003-04 ORDER DATED 05/ 8/2011 WHEREIN IDENTICAL ISSUE HAS BEEN DECIDED IN FAVOUR OF THE A SSESSEE BY OBSERVING THAT IDENTICAL ISSUE DECIDED IN EARLIER YEARS I.E. 1988-89 AND 1989-90 IN FAVOUR OF THE ASSESSEE BY THE HONBLE ITAT AND THE M ATTER IS PENDING BEFORE THE HONBLE RAJASTHAN HIGH COURT. THEREFORE HE PRAYED TO CONFIRM THE ORDER OF THE LEARNED CIT(A) IN BOTH THE ASSESSME NT YEARS. 6. AT THE OUTSET THE LEARNED DR SUPPORTED THE ORDE R OF THE LEARNED ASSESSING OFFICER. 7. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THIS IDENTICAL ISSUE HAD BEE N DECIDED BY THE COORDINATE BENCH IN ASSESSEES OWN CASE FOR A.Y. 200 3-04 AND ALLOWED THE APPEAL IN FAVOUR OF THE ASSESSEE THEREFORE WE DO N OT FIND ANY REASON TO DEVIATE THE ORDER PASSED BY THE COORDINATE BENCH ON IDENTICAL FACTS. ACCORDINGLY WE CONFIRM THE ORDER OF THE LEARNED CIT (A). ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 7 8. GROUND NO. (II) OF REVENUES APPEAL IN BOTH THE ASSESSMENT YEARS I.E. A.Y. 2005-06 AND 2006-07 ARE AGAINST DELETING THE A DDITION OF RS. 15 13 168/- IN A.Y. 2005-06 AND RS. 16 40 464/- IN A.Y. 2006-07 ON ACCOUNT OF GUEST HOUSE EXPENSES. THE ASSESSING OFFIC ER OBSERVED AS UNDER:- ASSESSEE HAS CLAIMED GUEST HOUSE EXPENSES OF RS. 1 5 13 168/-. THE GUEST HOUSE EXPENSES WERE ALSO DISALLOWED IN PRECEDIN G YEARS AND THIS ISSUE IS ALSO PENDING FOR ADJUDICATION IN RAJA STHAN HIGH COURT. FURTHER THE NATURE OF THESE EXPENSES ARE SUCH THAT IT CANNOT BE SAID THAT THESE EXPENDITURE HAVE BEEN INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS OF THE COMPANY. THEREFORE G UEST HOUSE EXPENSES OF RS. 15 13 168/- IS DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. THE SAME FINDING HAS BEEN GIVEN BY THE LEARNED ASSES SING OFFICER IN A.Y. 2006-07 AND AMOUNT OF RS. 16 40 464/- WAS DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. 9. BEING AGGRIEVED BY THE ORDER OF THE LEARNED AS SESSING OFFICER THE ASSESSEE CARRIED THE MATTER BEFORE THE LEARNED CIT(A) WHO HAD ALLOWED THE APPEAL BY OBSERVING AS UNDER:- BY FINANCE ACT 1997 SEC. 37(4) OF THE I.T. ACT 196 1 WAS REMOVED W.E.F. ASSESSMENT YEAR 1998-99. THEREFORE DISALLOWANC E OF RS. 15 13 168/- OUT OF GUEST HOUSE EXPENSE IS DIRECTED TO BE DELETED. ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 8 THE SAME FINDING HAS BEEN GIVEN BY THE LEARNED ASSES SING OFFICER IN A.Y. 2006-07 AND ADDITION OF RS. 16 40 464/- OUT OF GUES T HOUSE EXPENSES MADE BY HIM IS DIRECTED TO BE DELETED BY THE LEARNE D CIT(A). 10. NOW THE REVENUE ARE IN APPEALS BEFORE US. THE LE ARNED DR SUPPORTED THE ORDER OF THE ASSESSING OFFICER AND TH E LEARNED AR FOR THE ASSESSEE ARGUED THAT THIS ISSUE IS COVERED BY THE ITAT B BENCH JAIPUR DECISION IN THE ASSESSEES OWN CASE IN ITA NO. 331/J P/2011 A.Y. 2003-04 ORDER DATED 05/8/2011 WHEREIN IDENTICAL ISSUE HAS B EEN DECIDED IN FAVOUR OF THE ASSESSEE THE MATTER IS PENDING BEFORE THE HO NBLE RAJASTHAN HIGH COURT. THEREFORE HE PRAYED TO CONFIRM THE ORDER OF THE LEARNED CIT(A) IN BOTH THE ASSESSMENT YEARS. 11. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PAR TIES AND PERUSED THE MATERIAL ON RECORD. THE COORDINATE BENC H HAS GIVEN FINDINGS ON THIS ISSUE IN PARAGRAPH NO. 2.4 IN ITA NO. 331/J P/2011 WHICH IS REPRODUCED AS UNDER:- 2.4 WE HAVE HEARD BOTH THE PARTIES. THE A.O. HAS DISALLOWED GUEST HOUSE EXPENSES ON THE GROUND THAT S UCH DISALLOWANCE HAS BEEN MADE IN EARLIER YEARS AND THE ISSUE IS PENDING FOR ADJUDICATION BEFORE HONBLE JURISDICTIO NAL HIGH COURT. EARLIER GUEST HOUSE EXPENSES WERE NOT ALLOWAB LE AS PER SECTION 37(4) OF THE ACT. HOWEVER SECTION 37(4) OF THE ACT HAS BEEN REMOVED AND THEREFORE NO DISALLOWANCE COULD HAVE BEEN MADE UNLESS THE A.O. WAS ABLE TO JUSTIFY T HAT THERE ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 9 WERE EXPENDITURE WHICH HAVE NOT BEEN INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS. HENCE THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE DISALLOWANCE. BY RESPECTFULLY FOLLOWING THE ORDER OF THE COORDINAT E BENCH WE ALSO CONFIRM THE ORDER OF THE LEARNED CIT(A) IN BOTH THE YEARS ON THIS IDENTICAL ISSUE. 12. GROUND NO.(III) OF REVENUES APPEALS OF BOTH T HE ASSESSMENT YEARS IS AGAINST DELETING THE ADDITION OF RS. 14 32 645/- IN A.Y. 2005-06 AND RS. 31 47 722/- IN A.Y. 2006-07 ON ACCOUNT OF GIFT AND PRESENT EXPENSES. THE LEARNED ASSESSING OFFICER OBSERVED AS UNDER:- ASSESSEE HAS CLAIMED BUSINESS PROMOTION EXPENSES O F RS. 32 76 012/- WHICH INCLUDES EXPENDITURE OF GIFTS AND PRESENTS OF RS. 14 32 645/-. THE EXPENSES OF GIFTS AND PRESENTS WERE ALSO DISALLOWED IN PRECEDING YEARS IN ORDERS U/S 143(3). FURTHER THE NATURE OF THESE EXPENSES ARE SUCH THAT IT CANNOT BE SAID THAT THESE EXPENDITURE HAVE BEEN INCURRED WHOLLY AND EXCLUSIVEL Y FOR THE PURPOSE OF BUSINESS OF THE COMPANY. THEREFORE GIFT S AND PRESENTS EXPENSES OF RS. 14 32 645/- IS DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. THE SAME FINDING HAS BEEN GIVEN BY THE LEARNED ASSES SING OFFICER IN A.Y. 2006-07 AND AMOUNT OF RS. 31 47 722/- WAS DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. 13. NOW THE REVENUE IS IN APPEALS BEFORE US. THE LEARNED DR SUPPORTED THE ORDER OF THE ASSESSING OFFICER AND TH E LEARNED AR FOR THE ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 10 ASSESSEE ARGUED THAT THIS ISSUE IS COVERED BY THE ITAT B BENCH JAIPUR DECISION IN THE ASSESSEES OWN CASE IN ITA NO. 331/J P/2011 A.Y. 2003-04 ORDER DATED 05/8/2011 WHEREIN IDENTICAL ISSUE HAS B EEN DECIDED IN FAVOUR OF THE ASSESSEE AND THE MATTER IS PENDING BEFORE TH E HONBLE RAJASTHAN HIGH COURT. THEREFORE HE PRAYED TO CONFIRM THE ORDE R OF THE LEARNED CIT(A) IN BOTH THE ASSESSMENT YEARS. 14. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH TH E PARTIES AND PERUSED THE MATERIAL ON RECORD. THE COORDINATE BENC H HAS GIVEN FINDINGS ON THIS ISSUE IN PARAGRAPH NO. 3.4 IN ITA NO. 331/J P/2011 WHICH IS REPRODUCED AS UNDER:- 3.4 AFTER HEARING BOTH THE PARTIES WE FEEL THAT T HE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE DISALLOWANCE. THER E IS NOTHING ON RECORD ON SUGGEST THAT THE GIFTS AND PRESENTS WER E NOT MADE FOR THE PURPOSE OF THE BUSINESS. BY RESPECTFULLY FOLLOWING THE ORDER OF THE COORDINAT E BENCH WE ALSO CONFIRM THE ORDER OF THE LEARNED CIT(A) IN BOTH THE YEARS ON THIS IDENTICAL ISSUE. 15. THE GROUND NO. IV OF REVENUES APPEAL GROUND N O. 1 & 2 OF C.O. FOR A.Y. 2005-06 AND GROUND NO. 1 OF THE C.O. FOR A .Y. 2006-07 ARE AGAINST RESTRICTING THE DISALLOWING OF RS. 1 65 61 645/- IN A.Y. 2005-06 ON ACCOUNT OF P.F. CONTRIBUTION FOR NOT ALLOWING DEDUCTION OF RS. 9 74 86 421/- ON ACCOUNT OF EMPLOYEES CONTRIBUTION AND CONFIRMING D ISALLOWANCE OF RS. ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 11 3 39 38 290/- MADE BY THE ASSESSING OFFICER ON ACCO UNT OF DELAY IN DEPOSITION OF EMPLOYEES CONTRIBUTION TO PF. THE LEA RNED ASSESSING OFFICER OBSERVED THAT AS PER AUDIT REPORT THE TOTAL EMPLOY EES CONTRIBUTION TO P.F. WAS RS. 9 93 17 629/-. OUT OF THIS AMOUNT OF RS. 60 43 223/- HAVE NOT BEEN PAID AND AMOUNT OF RS. 7 57 32 300/- HAVE BEEN PAID AFTER PRESCRIBED TIME/DUE DATE. THEREFORE THIS AMOUNT OF RS. 8 17 75 523/- SHOULD HAVE BEEN ADDED WHILE COMPUTING THE INCOME/LO SS WHEREAS THE ASSESSEE HAS ADDED IN COMPUTATION AN AMOUNT OF RS. 60 43 223/- ONLY ON THIS ACCOUNT. HENCE THE BALANCE AMOUNT OF RS. 7 57 32 300/- IS ADDED TO THE INCOME OF THE ASSESSEE DUE TO THE NONPAYMENT/DE LAYED PAYMENT BY THE COMPANY. 16. BEING AGGRIEVED BY THE ORDER OF THE LEARNED ASSESS ING OFFICER THE ASSESSEE CARRIED THE MATTER BEFORE THE LEARNED CIT(A) IN A.Y. 2005-06 WHO HAD ALLOWED THE APPEAL PARTLY BY OBSERVING AS UND ER:- I HAVE GONE THROUGH A.OS FINDING AND ASSESSEES S UBMISSIONS. THE ASSESSEES CONTRIBUTION TO P.F. IS COVERED BY SEC. 43B(B) HOWEVER EMPLOYEES CONTRIBUTION TO PROVIDENT FUND IS DEALT BY SEC. 36(1)(VA) READ WITH SEC. 2(24)(X). AS PER SEC. 2(24)(X) ANY SU M RECEIVED BY ASSESSEE FROM HIS EMPLOYEES AS CONTRIBUTION TO ANY PROVIDENT FUND HAS TO BE TREATED AS INCOME. SEC. 36(1)(VA) PROVIDE S THAT THE ABOVE REFERRED SUM CAN BE CLAIMED AS DEDUCTION IF SUCH SU M IS CREDITED BY ASSESSEE TO THE EMPLOYEES ACCOUNT IN THE RELEVANT FUND ON OR BEFORE DUE DATE PRESCRIBED UNDER P.F. ACT. ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 12 IN A.Y. 2006-07 THE LEARNED CIT(A) HAD ALLOWED THE A PPEAL PARTLY BY OBSERVING AS UNDER:- THE A.O. DISALLOWED A SUM OF RS. 3 39 38 290/- ON TH E GROUND THAT EMPLOYEES CONTRIBUTION TO PROVIDENT FUND WAS NOT PA ID BEFORE DUE DATE. THE ISSUE IS DEALT BY SEC. 36(1)(VA) READ WITH SEC. 2 (24)(X). AS PER SEC. 2(24)(X) ANY SUM RECEIVED BY ASSESSEE FROM HIS EMPLOYEES AS CONTRIBUTION TO ANY PROVIDENT FUND HAS TO BE TREATE D AS INCOME. SEC. 36(1)(VA) PROVIDES THAT THE ABOVE REFERRED SUM CAN BE CLAIMED AS DEDUCTION IF SUCH SUM IS CREDITED BY ASSESSEE TO TH E EMPLOYEES ACCOUNT IN THE RELEVANT FUND ON OR BEFORE DUE DATE PRESCRIBED UNDER P.F. ACT. AS THE ASSESSEE FAILED TO PAY THE SAID SUM BEFORE D UE DATE (UNDER PROVIDENT FUND ACT) THE ASSESSEE IS NOT ENTITLED F OR DEDUCTION U/S 36(1)(VA). THE ADDITION OF RS. 3 39 38 290/- IS THEREFORE CONFI RMED. THIS GROUND OF APPEAL IS THEREFORE DISMISSED. 17. NOW THE REVENUE IS IN APPEALS AND THE ASSESSEE IS IN C.O BEFORE US. THE LEARNED DR SUPPORTED THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED AR FOR THE ASSESSEE ARGUED THAT THIS IDENTICAL ISSUE HAS BEEN COVERED BY THE ITAT B BENCH JAIPUR DECISION IN THE ASSESSEES OWN CASE IN ITA NO. 331/JP/2011 A.Y. 2003-04 ORDER DATE D 05/8/2011 WHEREIN IDENTICAL ISSUE HAS BEEN DECIDED IN FAVOUR OF THE A SSESSEE AND THE ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 13 ASSESSEE HAS PAID THESE CONTRIBUTIONS BEFORE DUE DA TE OF RETURN THEREFORE IT IS ALLOWABLE. HE RELIED UPON THE FOLLOWING CASE LA WS:- (I) CIT VS. STATE BANK OF BIKANER AND JAIPUR (2014) 363 ITR 70 (RAJ) (HC). (II) CIT VS. JAIPUR VIDYUT VITRAN NIGAM LTD. (2014) 363 ITR 307 (RAJ) (HC). (III) CIT VS. UDAIPUR DUGDH UTPADAK SAHAKARI SANGH LTD. (2014) 98 DTR 109 (RAJ.) (HC) 18. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PAR TIES AND PERUSED THE MATERIAL ON RECORD. BOTH THE PAYMENTS A RE COVERED BY THE HONBLE JURISDICTIONAL HIGH COURTS DECISION IN VAR IOUS CASES AS MENTIONED BY THE LEARNED A.R.. THEREFORE WE ALLOW THE ASSESSEE S APPEAL IN BOTH THE YEARS. ACCORDINGLY REVENUES APPEAL IN A.Y. 2005-0 6 IS DISMISSED ON GROUND NO. IV AND ASSESSEES C.O. GROUND NO. 1 AND 2 IN A.Y. 2005-06 GROUND NO. 1 IN A.Y. 2006-07 ARE ALLOWED IN FAVOUR O F THE ASSESSEE. 19. IN THE RESULT REVENUES APPEALS ARE DISMISSED IN BOTH THE YEARS AND THE C.OS. FILED BY THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28/11/2014. SD/- SD/- (R.P. TOLANI) (T.R. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED : 28 TH NOVEMBER 2014 * RANJAN ITA 542 & 543/JP?2012 & C.O 52 & 52/JP/2012 ACIT VS. M/S INSTRUMENTATION LTD. 14 COPY FORWARDED TO :- 1. THE ACIT CIRCLE-1 KOTA & THE DCIT CIRCLE-1 KOTA . 2. M/S INSTRUMENTATION LTD. KOTA. 3. THE CIT (A) 4. THE CIT 5. THE D/R GUARD FILE (I.T.A. NO. 542 & 543/JP/2012 & .C.O. NO. 52 & 53/JP/2012) BY ORDER AR ITAT JAIPUR.