ACIT vs Dhruv Globals Limited

This appeal by the revenue is preferred against the order of the CIT(A)-3, New Delhi dated 10.07.2019 pertaining for A.Y.2016-17.

The solitary grievance of the revenue is that the CIT(A) erred in deleting the addition of Rs.1,80,81,279/- made by the AO u/s. 36(1) (va) of the Act.

Briefly stated the facts of the case are that during the assessment proceedings and on perusal of the audit report in form No.3CD the AO noticed that the default in the deposit of Provident Fund and ESI as under :-

Nature of Fund

Sum received from

employee

Due date for payment

Actual Amount paid

The actual date of

pay meat

Remarks

Any other Welfare Fund

Rs 26,50.761

2015-05-20

Rs 26.50.76l/-

2015-06-24

Contribution of employee PF

Any other Welfare Fund

Rs, 26,28.290/

2015- 06-20

Rs. 26,28,290/-

2015-07-13

Contribution of employee PF

Any other Welfare Fund

Rs. 25.28.614/

2015- 07-20

Rs. 25.28.614/-

2015-09-11

Contribution of employee PF

Any other Welfare Fund

Rs. 25,67,527/

20154)8-20

Rs. 23,67,527/-

2015-09-15

Contribution of employee PF

Any other Welfare Fund

Rs 21.06.102/

2015-09-20

Rs. 21.06.102/-

2015-()9-24

Contribution of employee PF

Any other Welfare Fund

Rs. 25.83.606/-

2015-12-20

Rs. 25,83.606/-

2016-01 -I 1

Contribution of employee PF

Any fund set up under the provisions of ESI Act. urn

Rs. 4.52,566/-

2015-05-21

Rs. 4.52.566/

2015-06-02

Contribution of employee ESI

Any fund set up under the provisions of ESI Act. 1948

Rs. 4,45.782/-

20154)6-21

Rs. 4.45.782/

201 5-07-07

Contribution of employee ESI

Any fund set up under the provisions of ESI Act. 1948

Rs. 4,30,019/-

2015-07-21

Rs. 4,30.019/

2015-09-02

Contribution of employee ESI

Any fund set up under the provisions of ESI Act. 1948

Rs 3,95.609/-

2015-08-21

Rs 3 05 609/-

2015-09-03

Contribution of employee ESI

Any in and set up under the provisions of ESI Act. 1948

Rs. 3,09,054/-

2015-10-21

Rs, 3.09.054/

2015 -10-7

Contribution of employee ESI

Any fund set up under the provisions of ESI Act, 1948

Rs. 3.43.093/-

2015-11-21

Rs 3 43 093/-

2016-01-08

Contribution of employee ESI

Any fund set up under the provisions of ESI Act. 1948

Rs. .3.93,884/-

2015-12-21

Rs. 3.93.884/.

2016-01-08

Contribution of employee ESI

Any fund set up under the provisions of ESI Act. 1948

Rs, 4.46,372/-

2016-02-21

Rs. 4.46.372/-

2016-02-23

Contribution of employee ESI

Total

1.80,81,279/-

Noticing the aforementioned default the AO made the addition of Rs.1,80,81,279/-.

Assessee agitated the matter before the CIT(A) and strongly contended that though there is a delay in payment of PF/ ESI but the same has been paid before filing the return of income. After verifying the details the CIT(A) was convinced with the contention of the assessee.

The Assessee has deposited employees contribution to PF well before the filing of return of income. Drawing support from the decision of the Hon’ble Delhi High Court in the case of CIT Vs. AIMIL Limited 321 ITR 508 the CIT(A) deleted the impugned addition.

Before us the DR strongly supported the findings of the AO and the Counsel relied upon the decision of the CIT(A).

We have carefully perused the orders of the authorities below. The undisputed fact is that the assessee has made the payments before filing the return of income. The facts under consideration are in pari materia, the same is considered by the Hon’ble Delhi High Court in the case of AIMIL Limited (supra) and since the CIT(A) has followed the decision of the Hon’ble Jurisdictional High Court, we decline to interfere with the findings of the CIT(A). The Appeal filed by the revenue is accordingly dismissed.

Decision announced in the open court on 22.06.2022.