ITO, Gurgaon v. Sh. K.P. Singh Prop., Gurgaon

ITA 4487/DEL/2009 | 2006-2007
Pronouncement Date: 27-01-2010 | Result: Dismissed

Appeal Details

RSA Number 448720114 RSA 2009
Assessee PAN AFJPS4563A
Bench Delhi
Appeal Number ITA 4487/DEL/2009
Duration Of Justice 2 month(s)
Appellant ITO, Gurgaon
Respondent Sh. K.P. Singh Prop., Gurgaon
Appeal Type Income Tax Appeal
Pronouncement Date 27-01-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 27-01-2010
Date Of Final Hearing 27-01-2010
Next Hearing Date 27-01-2010
Assessment Year 2006-2007
Appeal Filed On 26-11-2009
Judgment Text
ITA NO. 4487/DEL/2009 A.Y. 2006-07 1 IN THE INCOMETAX APPELATE TRIBUNAL DELHI BENCH D: NEW DELHI BEFORE SHRI C.L. SETHI JUDICIAL MEMBER & SHRI SHAMIM YAHYA ACCOUNTANT MEMBER ITA NO. 4487/DEL/2009 A.Y. : 2006-07 INCOME TAX OFFICER VS. SHRI K.P. SINGH PROP. W-5 GURGAON PROP. M/S HI-TECH SECURITY & PLACE MENT NEAR ANAJ MANDI KHANDSA ROAD GURGAON (HARYANA) (PAN: AFJPS4563A) (APPELLANT) (RESPONDENT) ASSESSEE BY : MR. US AGGARWAL ADV. DEPARTMENT BY : SHRI B.K. GUPTA SR. DR O R D E R PER SHAMIM YAHYA : AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDERS OF THE LD. CIT(A) DATED 16.09.2009 PERTAINING TO ASSESSMENT YE AR 2006-07. 2. THE ISSUE RAISED IS THAT LD. CIT(A) ERRED IN DEL ETING THE ADDITION OF RS. 9 23 409/- MADE BY THE AO ON ACCOUNT OF LATE DE POSITS OF EMPLOYEES CONTRIBUTIONS TOWARDS PF & ESI. 3. IN THIS CASE AO OBSERVED THAT ASSESSEE HAD MADE LATE PAYMENT WITH REGARD TO EMPLOYEES CONTRIBUTIONS TOWARDS ESI AND PF. REFERRING TO PROVISIONS OF SECTION 36(1)(VA) AO HELD THAT THESE PAYMENTS WERE MADE BEYOND THE PRESCRIBED TIME HENCE THEY WERE DISALL OWED. 4. UPON ASSESSEES APPEAL LD. CIT(A) REFERRED TO THE PROVISIONS OF SECTION 43B AND OBSERVED THAT THERE WAS SOME DELAY IN DEPOSITING THE ITA NO. 4487/DEL/2009 A.Y. 2006-07 2 EMPLOYEES SHARE OF CONTRIBUTIONS TO ESI AND PF BUT THE SAME HAVE BEEN DEPOSITED WITHIN THE FINANCIAL YEAR ITSELF AND BEF ORE THE DUE DATE OF FURNISHING THE RETURN OF INCOME AS PRESCRIBED UNDE R SECTION 139(1) OF THE IT ACT. HENCE REFERRING TO THE PROVISIONS OF SECTION 43B CIT(A) OBSERVED THAT AFTER THE DELETION OF THE SECOND PROV ISO ALL PAYMENTS TO PF/ESI ARE ALLOWED AS BUSINESS EXPENDITURE EVEN THOU GH THEY HAVE BEEN DEPOSITED AFTER THE DUE DATE AS PRESCRIBED UNDER TH E RESPECTIVE ACTS BUT BEFORE THE DATE OF FILING THE RETURN U/S 139(1) OF THE IT ACT. LD. CIT(A) ACCORDINGLY PROCEEDED TO DELETE THE ADDITION. 5. AGAINST THIS ORDER THE REVENUE IS IN APPEAL BEFO RE. 6. BEFORE US LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F THIS TRIBUNAL IN ITA NO.2469/DEL/2008 (A.Y.2005-06) WHEREIN VIDE ORDER D ATED 24.7.2009 THE TRIBUNAL FOLLOWING THE HONBLE JURISDICITIONAL HIGH COURT DECISION IN THE CASE OF M/S PM ELECTRONICS REPORTED IN 220 CTR 635 AND IN THE DECISION IN THE CASE OF DHARMEDRA SHARMA REPORTED I N 297 ITR 320 (DEL) HAD DELETED THE ADDITION. 7. WE HAVE HEARD BOTH THE COUNSELS AND PERUSED THE RECORDS. IT TRANSPIRES THAT THE ISSUE IS COVERED IN FAVOUR OF T HE ASSESSEE BY THE DECISION OF THE HONBLE APEX COURT IN THE CASE OF C IT VS. ALOM EXTRUSIONS LTD. [2009] 319 ITR 306 (SC). IN THIS CASE HONBL E APEX COURT ELABORATELY ANALYSED SCHEME OF SECTION 43B AND HELD THAT AMOUNTS ITA NO. 4487/DEL/2009 A.Y. 2006-07 3 WHICH FALL IN THE REALM OF SECTION 43B HAVE TO BE A LLOWED SO FAR AS THEY ARE ACTUALLY PAID UPTO THE DATE OF FILING OF RETURN . 8. IN THE RESULT THE REVENUES APPEAL IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 27/01/2010. SD/- SD/- [C.L. SETHI] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 27/01/ 2010 SRB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES