Parikh Packaging Pvt. Ltd vs Ito, Ward-3(1)(2), His Succesor
2022 Latest Caselaw 8209 Guj

    C/TAXAP/599/2022                                  ORDER DATED: 20/09/2022




           IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                        R/TAX APPEAL NO. 599 of 2022

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                         PARIKH PACKAGING PVT. LTD.
                                    Versus
                       ITO, WARD-3(1)(2), HIS SUCCESOR
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Appearance:
MR SN DIVATIA(1378) for the Appellant(s) No. 1
for the Opponent(s) No. 1
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 CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA
       and
       HONOURABLE MR. JUSTICE BHARGAV D. KARIA

                               Date : 20/09/2022

                        ORAL ORDER

(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)

1.This Tax Appeal under Section 260-A of the

Income Tax Act, 1961 (for short "the Act,

1961) is at the instance of the Assessee and

is directed against the order passed by the

Income Tax Appellate Tribunal, Ahmedabad

Bench-C, in ITA No.2778/Ahd/2017 for the

Assessment Year 2013-14.

2.The appellant has proposed the following

question of law:

C/TAXAP/599/2022 ORDER DATED: 20/09/2022

"Whether the Appellate Tribunal has substantially erred in upholding the disallowance of deduction u/s.36(1)(va) r.w.s. 2(24)(x) to the extent of Rs.35,93,362/- in respect of employees contribution to PF/-?"

3.Mr. Divatia, the learned counsel appearing

for the appellant invited the attention of

this Court to one order passed by the

coordinate Bench dated 1st October, 2018 in

Tax Appeal No.1188 of 2018. The order reads

thus :

"This Appeal is filed by the assessee to challenge the judgment of the Income Tax Appellate Tribunal, Ahmedabad {"Tribunal"

for short} dated 22 nd March 2018. The issue pertains to Assessment Year 2014-15 and the sole question raised by the assessee in this appeal concerns deductibility of a sum of Rs.15,82,265/= which was the employees' contribution towards Provident Fund, ESI, etc. It appears that the assessee did deposit such amount of contribution towards PF & ESIC accounts, however, missed the deadline prescribed in the statutes for such purpose. On account of this, the Revenue did not permit deduction of such sum from the income of the assessee. Such disallowance thereupon became the subject matter of appeal before the Tribunal. The Tribunal dismissed the ground, relying upon the judgment of this Court in the case of Commissioner of Income-tax vs. Gujarat State

C/TAXAP/599/2022 ORDER DATED: 20/09/2022

Road Transport Corporation Limited, reported in 366 ITR 170 [Gujarat].

Counsel for the appellant did not dispute that the issue on hands is squarely covered by this Court in the case of CIT v. GSRTC [Supra]. He, however, submitted that the appeal is pending against the judgment of the High Court before the Supreme Court and SLP has been granted. The amount involved is not very large and it would be extremely expensive for the assessee to carry this in appeal before the Supreme Court. He, therefore, suggested that the benefit of this judgment of the Supreme Court may be made available to the assessee; as and when rendered and in case, the judgment of the High Court is reversed.

Two clear ways are possible to enable the appellant assessee to get benefit of the judgment of the Supreme Court, in case the High Court judgment is reversed. One is to dismiss this appeal and allow the assessee to approach the Supreme Court; like some other assesses would have. The other way is to make some arrangement under which without filing the appeal, the assessee would also be able to claim the benefit of the judgment. Looking to the smallness of the disputed amount, we adopt the latter option by providing as under:

This appeal at this stage is dismissed. However, if the Supreme Court reverses the judgment in the case of CIT vs. GSRTC [Supra], it would be open for the appellant to revive this appeal by filing an application for such purpose within three months from the date of the judgment.

Appeal stands disposed of accordingly."

C/TAXAP/599/2022 ORDER DATED: 20/09/2022

4. The question of law proposed in the

present appeal is squarely covered by the

aforesaid order passed by this Court. In such

circumstances referred to above, this appeal,

at this stage, is dismissed. However, if the

Supreme Court reverses the judgement in the

case of Commissioner of Income-tax vs.

Gujarat State Road Transport Corporation

Limited, reported in 366 ITR 170 [Gujarat],

it would be open for the appellant to revive

this appeal by filing an application for such

purpose within three months from the date of

the judgement.

4.Appeal stands disposed of accordingly

(N.V.ANJARIA, J)

(BHARGAV D. KARIA, J) RAGHUNATH R NAIR