TMI Blog2015 (6) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... rary binding decision in its support nor could controvert the findings of CIT(A). - Decided against revenue. Addition on account of delayed payment on employee’s contribution to provident fund - Held that:- . In view of the undisputed fact that the Employees share of contribution of Provident fund was paid after the prescribed due date, and following the decision of Hon'ble Gujarat High Court in the case of Gujarat State Road Transport Corporation (2014 (1) TMI 502 - GUJARAT HIGH COURT), we are of the view that the AO was justified in disallowing the belated payments and thus this ground of Revenue is allowed. - Decided against assesse. - ITA No. 2714/Ahd/2011 - - - Dated:- 13-3-2015 - Shri Mukul Kr. Shrawat And Shri Anil Chaturvedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 of the Income-tax rules, 1962, ignoring the fact that, in common commercial practice, factories producing electric and electronic goods are not known as a rubber and plastic goods factories. 2. On the facts and in the circumstances of the case and in law, the Ld.CIT(Appeals) erred in deleting the addition of ₹ 2,62,184/- made u/s.36(i)(va) r.w.s. 2(24)(x) on account of disallowance of Employee's Contribution to Provident Fund not paid within the due date (including the grace period) ignoring the fact that as per provisions of section 2(24)(x) of the Act the employees' contribution is first treated as income, and then is allowed as expense if it is paid within the time provided under Provident Fund Act. Employees' cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he matter before Ld. CIT(A). Ld. CIT(A) by following the decision of Hon ble ITAT in assessee s own case, allowed the appeal of the assessee by holding as under:- 2. First Ground of appeal is regarding disallowance of depreciation of ₹ 78,91,350/- on Dies and Moulds. As rightly pointed out by the appellant, this ground of appeal is covered by Hon ble ITAT s decision in appellant s favour in A.Y. 2001-02. The ITAT, Ahmedabad through order dated 04-10-2007, upheld CIT(A) s decision that moulds in question were used for manufacture of plastic goods and were eligible for higher depreciation. ITAT relied upon decision of ITAT, Bangalore in the case of BPL Refrigeration Ltd., 272 ITAT 47 (Bangalore) (80) and Kinetic Honda Motors Ltd,. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anules are converted into liquid form and then the same are given a definite shape through different kinds of ejection moulds, dyes and tools. These plastic components are assembled together to make switches and sockets. We therefore, submit that the basic raw materials for manufacturing goods are plastic and the final product is also made of plastic . The appellant has relied upon the decision of ITAT Bangalore in the case of BPL Refrigeration Ltd Vs. ACIT, 272 ITR 47 (Bangalore) (AT) art Kinetic Honda Motor Ltd., Vs. Jt. CIT 72 TTJ 72 (Puns ITAT). 9. 1 have considered the rival submissions and perused the case law. The main objection of the AO is that the end product manufactured by the appellant are not plastic product and plastic is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal in assessee s own case for A.Y. 2001- 02. Before us, Revenue has not brought any contrary binding decision in its support nor could controvert the findings of CIT(A). In view of these facts, we find no reason to interfere with the order of CIT(A) and thus this ground of revenue is dismissed. Second ground is with respect to deletion of addition on account of delayed payment on employee s contribution to provident fund. 9. During the course of assessment proceedings, AO noticed that Employee s contribution to provident fund for the month of August and October, 2005 was paid after the prescribed due dates. AO was of the view that the case of delay in depositing the employees contribution in P.F. account beyond the due dates are cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of CIT vs. Gujarat State Road Transport Corporation (2014) 366 ITR 170. He thus supported the order of AO. Ld. AR on the other hand submitted that assessee has deposited the contribution before filing of return of income and therefore it was allowable. He thus supported the order of CIT(A). 12. We have heard the rival submissions and perused the material on record. In the present case, it is an admitted fact that the amount of Employees contribution towards provident fund for August and October, 2005 has been deposited beyond the due dates prescribed under the relevant Act. The Hon'ble Gujarat High Court in the case of Gujarat State Road Transport Corporation in ITA No 637/AHD/20I3 has concluded that where sum received by Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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