Income Tax Appellate Tribunal - Delhi
Delhi Watch Marketing P.Ltd, New Delhi vs Dcit, Circle-7(1), New Delhi on 21 December, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES : SMC : NEW DELHI
BEFORE SHRI R.S. SYAL, VICE PRESIDENT
ITA No.5783/Del/2017
Assessment Year : 2014-15
Delhi Watch Marketing P. Ltd., Vs. DCIT,
875/1, Sant Nagar, Circle-7(1),
Burari, New Delhi.
New Delhi.
PAN: AAACD6801B
Assessee By : Shri Baldev Raj, CA
Deptt. By : Shri Amit Jain, Sr. DR
Date of Hearing : 20.12.2017
Date of Pronouncement : 21.12.2017
ORDER
This appeal by the assessee arises out of the order passed by the CIT(A) on 21.06.2017 in relation to the assessment year 2014-15.
2. The only issue raised in this appeal is against the confirmation of disallowance of Rs.4,72,722/- and Rs.16,075/-, ITA No.5783/Del/2017 being, the employee's share of Provident Fund contribution and ESI contribution deposited after the due date under the respective Acts, but, within the time allowed for filing the return of income u/s 139(1) of the Act.
3. I have heard the rival submissions and perused the relevant material on record. I find that the issue raised in the instant appeal is no more res integra. The Hon'ble Supreme Court in the case of CIT v. Alom Extrusions Limited [(2009) 319 ITR 306 (SC)] has held that the amendment to first proviso and omission of the second proviso to section 43B by the Finance Act, 2003 is retrospective. The Hon'ble Delhi High Court in the case of CIT v. Aimil Limited [(2010) 321 ITR 508 (Delhi)] has allowed deduction in respect of employees' share when the amount was paid before the due date. When we consider these two judgments, it becomes patent that both the employer's and employees' contribution are allowable as deduction if the amount of provident fund etc., though belatedly, but is paid before the due date of filing of return u/s 139(1) of the Act.
2 ITA No.5783/Del/2017
4. Adverting to the facts of the instant case, it is seen as an admitted position that the assessee deposited the employees' contribution towards EPF and ESIC before the due date u/s 139(1) of the Act. Respectfully following the aforenoted judgment of the Hon'ble jurisdictional High Court, I order for the deletion of the addition.
5. In the result, the appeal is allowed.
Order Pronounced in the open Court on 21.12.2017.
Sd/-
[R.S. SYAL] VICE PRESIDENT Dated, 21st December, 2017.
dk Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT (A)
5. DR, ITAT AR, ITAT, NEW DELHI.3