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[Cites 2, Cited by 7]

Income Tax Appellate Tribunal - Bangalore

Income Tax Officer, Bangalore vs M/S Colour Lines Clothing India Pvt Ltd, ... on 31 October, 2017

               IN THE INCOME TAX APPELLATE TRIBUNAL
                        "C" BENCH : BANGALORE

      BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER
         AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER


                           ITA No.431/Bang/2017
                          Assessment year : 2013-14

The Income Tax Officer,                Vs.   M/s. Colour Lines Clothing
Ward 2(1)(2),                                India Pvt. Ltd.,
Bangalore.                                   No.96, 29th Main Road,
                                             BTM 2nd Stage,
                                             Bangalore - 560 076,
                                             PAN: AADCC 3330R
          APPELLANT                                    RESPONDENT

Appellant by       : Shri Sumer Singh Meena, Addl. CIT(DR)(ITAT),
                     Bengaluru
Respondent by      : None

                 Date of hearing       : 12.10.2017
                 Date of Pronouncement : 31.10.2017

                                   ORDER

   Per Sunil Kumar Yadav, Judicial Member

This appeal is preferred by the revenue against the order of the CIT(Appeals) inter alia on the following grounds:-

"1) The order of the learned CIT (A) is opposed to the law and facts of the case.
2) The learned CIT (A) erred in allowing belated remittance of employee's contribution to EPF / ESI as a deduction if it is paid before the due date for filing of the return of income as ITA No.431/Bang/2017 Page 2 of 3 specified u/s 139(1) of the Act, whereas the employee's contribution to PF/ESI can be allowed as a deduction only if the payments were made within the specified due dates under PF /ESI Act.
3) The CIT (A) erred in not appreciating the fact that the belated remittance of employee's contribution to PF/ESI are to be treated as income of the assesses in terms of the provisions of Section 2(24)(x) r.w.s 36(1)(va) of the Act and therefore, the proviso to Section 43B is not applicable.
4) For these and any other grounds that may arise at the time of hearing, it is humbly prayed that the order of the CIT (A) be reversed on the above issue and that of the Assessing Officer may be restored."

2. This appeal came up for hearing on 12.10.2017, but none appeared for the assessee.

3. Having carefully examined the grounds of appeal, we find that this appeal can be disposed of even in the absence of the assessee. We accordingly heard the appeal.

4. We have carefully perused the grounds of appeal and the order of CIT(Appeals) and we find that the CIT(Appeals) has adjudicated the issue, following the judgment of the Hon'ble jurisdictional High Court in the case of Sabari Enterprises, (2008) 298 ITR 141 having noted that the payments were made before the filing of return of income, therefore the expenditure is to be allowed u/s. 43B of the Act. Since the CIT(Appeals) has adjudicated the issue following the judgment of the Hon'ble jurisdictional High Court, we ITA No.431/Bang/2017 Page 3 of 3 find no infirmity in the order of the CIT(Appeals). Accordingly the order of CIT(Appeals) is confirmed.

5. In the result, the appeal of the revenue is dismissed.

Pronounced in the open court on this 31st day of October, 2017.

                Sd/-                                             Sd/-

     ( A.K. GARODIA )                            ( SUNIL KUMAR YADAV)
     Accountant Member                                Judicial Member


Bangalore,
Dated, the 31st October, 2017.

/ Desai Smurthy /

Copy to:

1.    Appellant
2.    Respondent
3.    CIT
4.    CIT(A)
5.    DR, ITAT, Bangalore.
6.    Guard file


                                                 By order



                                           Senior Private Secretary
                                             ITAT, Bangalore.