The High Court dismissed the Income Tax Appeal. The Court held that delayed payments of employees' contributions to the EPF fund are not allowable deductions under Section 36(1)(va) of the Income Tax Act, 1961, relying on recent decisions that drafted the CBDT ruling.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE C.K.ABDUL REHIM
&
THE HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI
THURSDAY, THE 11TH DAY OF JULY 2019 / 20TH ASHADHA, 1941
ITA.No.144 of 2019
AGAINST THE ORDER/JUDGMENT IN ITA 309/2017 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 18-06-2018
APPELLANT/RESPONDENT/APPELLANT/ASSESSEE:
KERALA STATE WAREHOUSING CORPORATION 39/1304, WAREHOUSING CORPORATION ROAD, KOCHI-682 016.
BY ADVS. SRI.MOHAN PULIKKAL SMT.A.AMRUTHA VIDYADHARAN SRI.NARAYANAN.P.POTTY
RESPONDENT/APPELLANT/RESPONDENT/REVENUE:
THE COMMISSIONER OF INCOME TAX KOCHI-682 018.
SRI. SHAMSUDHEEN V K, GOVERNMENT PLEADER SRI. JOSE JOSEPH, STANDING COUNSEL
THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 11.07.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
ITA.No.144 of 2019 2
C.K.ABDUL REHIM, J. &
R. NARAYANA PISHARADI, J.
I.T.A. No.144/2019
DATED THIS THE 11th DAY OF JULY, 2019.
JUDGMENT
C.K.ABDUL REHIM, J.
The question of law raised in the above Income Tax Appeal is mainly that, whether delayed payments of the employees' contribution made to the Employees Provident Fund Account, is an allowable deduction under section 36(1) (Va) of the Income Tax Act, 1961.
Commissioner of Income Tax V. Merchem Limited [(2015)378 ITR 443(Ker.)] , CIT V, Appollo Tyres Ltd., [2019 Tax Pub(DT)1986 (Ker.-HC)] and Popular Vehicles
and Services Pvt. Ltd V. Commissioner of Income Tax
[(2018) 406 ITR 150]. We also take note of the fact that, following the above decisions we have recently decided another case relating to M/s.Harrisons Malayalam Ltd., in the
ITA.No.144 of 2019 3
judgment in I.T.A No.252/2015, dated 14.06.2019.
another judgment, which is marked as Annexure E in Memorandum of Appeal, passed by another Division Bench of this Court as early as on 02.12.2009 (I.T.A.No.1035/2009), allowing an appeal filed by the assessee on the same subject matter. In the said judgment, this Court had followed the decision in CIT V. Vinay Cement Ltd , 213 CTR 268 . Both the judgments mentioned are concerned with the law as it stood prior to the amendment of Section 43B of the Income Tax Act, 1961. Therefore, we are of the opinion that those decisions are not applicable with respect to the present dispute.
Under the above mentioned circumstances, we are of the opinion that interference with the impugned order of the Tribunal is not warranted . Consequently, the appeal fails and the same is hereby dismissed.
Sd/-
C.K.ABDUL REHIM, JUDGE
Sd/-
R. NARAYANA PISHARADI, JUDGE
ajt
ITA.No.144 of 2019 4
APPENDIX
PETITIONER'S/S EXHIBITS:
| ANNEXURE A: | TRUE COPY OF THE ASSESSMENT ORDER DATED 28.03.13. |
|---|---|
| ANNEXURE B: | TRUE COPY OF THE ORDER DATED 31.03.2017 OF THE COMMISSIONER OF INCOME TAX(APPEALS)-1, KOCHI IN ITA NO. 28/R-1/CIT(A)-II/2013-14. |
| ANNEXURE C: | CERTIFIED COPY OF THE ORDER DATED 18.06.18 OF THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH IN ITA NO.309/COCH/2017. |
| ANNEXURE D: | CERTIFIED COPY OF THE CORRIGENDUM PASSED BY THE ITAT, COCHIN BENCH, IN ITA NO.309/COCH/2017. |
| ANNEXURE E: | TRUE COPY OF THE JUDGMENT DATED 2.12.2009 IN ITA NO.1035/2009. |
3 issues framed by the court
Whether delayed payments of employees contribution to EPF account is deductible under section 36(1)(va) of the IT Act, 1961 as amended.
Whether prior decisions allowing deduction pre-amendment remain applicable post-amendment.
Whether interference with the Tribunal's dismissal of the appeal is warranted.
Colour shows how this judgement treated each authority
Commissioner of Income Tax V. Merchem LimitedRelied on¶24
CIT V. Merchem Limited [(2015)378 ITR 443(Ker.)]
CIT V. Appollo Tyres Ltd.Relied on¶24
CIT V, Appollo Tyres Ltd., [2019 Tax Pub(DT)1986 (Ker.-HC)]
Popular Vehicles and Services Pvt. Ltd V. Commissioner of Income TaxRelied on¶25
Popular Vehicles and Services Pvt. Ltd V. Commissioner of Income Tax [(2018) 406 ITR 150]
M/s. Harrisons Malayalam Ltd.Relied on¶27
I.T.A No.252/2015
CIT V. Vinay Cement LtdDistinguished¶31
I.T.A.No.1035/2009 (I.T.A.No.1035/2009), 213 CTR 268
1 provisions across 1 enactments
Kerala State Warehousing Corporation
Commissioner of Income Tax, Kochi
C.K. Abdul Rehim
R. Narayana Pisharadi
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
