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2018 (10) TMI 1632 - HC - Income TaxDeductibility of Employees contribution towards Provident Fund, ESI, etc. - appellant did not dispute that the issue on hands is squarely covered by this Court in the case of CIT v. GSRTC 2014 (1) TMI 502 - GUJARAT HIGH COURT but submitted that the appeal is pending against the judgment of the High Court before the Supreme Court and SLP has been granted Held that - Two clear ways are possible to enable the 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 2014 (1) TMI 502 - GUJARAT HIGH COURT , 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.
Issues Involved:
Deductibility of employees' contribution towards Provident Fund, ESI, etc. for Assessment Year 2013-14. Detailed Analysis: The judgment delivered by the Gujarat High Court pertains to an appeal filed by the assessee challenging the decision of the Income Tax Appellate Tribunal (ITAT) regarding the deductibility of a sum of ?20,34,916, being the employees' contribution towards Provident Fund, ESI, etc. The assessee had deposited the contribution towards PF & ESIC accounts but missed the deadline prescribed by the statutes. Consequently, the Revenue disallowed the deduction of this amount from the assessee's income, leading to the matter being brought before the Tribunal. The Tribunal dismissed the ground, citing a precedent from the Gujarat High Court in the case of Commissioner of Income-tax vs. Gujarat State Road Transport Corporation Limited, reported in 366 ITR 170 [Gujarat]. The counsel for the appellant acknowledged that the issue at hand aligns with the precedent set by the Gujarat High Court in the case of CIT v. GSRTC [Supra]. However, the counsel highlighted that an appeal against the High Court's judgment is pending before the Supreme Court, with the Special Leave Petition (SLP) already granted. Considering the relatively small amount involved and the potential high costs of pursuing the matter before the Supreme Court, the counsel proposed that the benefit of the Supreme Court's judgment, if favorable, should be extended to the assessee without necessitating a separate appeal. In light of the circumstances and the amount in dispute, the High Court decided to dismiss the appeal at the current stage. However, the Court provided a mechanism for the appellant to avail the benefit of the Supreme Court's judgment in case of a reversal of the High Court's decision. The appellant was granted the option to revive the appeal within three months from the date of the Supreme Court's judgment in the case of CIT vs. GSRTC [Supra]. This approach was chosen to offer a practical and cost-effective solution to the appellant, ensuring access to potential relief without the immediate need for further litigation. Thus, the High Court's judgment not only addressed the specific issue of deductibility of employees' contribution towards Provident Fund and ESI but also demonstrated a pragmatic approach in enabling the appellant to benefit from potential future developments in the legal landscape without imposing undue financial burdens. The disposal of the appeal with the provision for revival under specific conditions reflects a balanced consideration of legal principles and practical considerations in the realm of tax law.
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