2004 (5) TMI 613 - AT - Income Tax

Summary

Issues:
1. Deletion of addition of job charges
2. Deletion of addition of delayed payment of PF

Deletion of Addition of Job Charges:
The revenue filed an appeal against the deletion of an addition of job charges amounting to Rs. 6,24,916 by the Commissioner (Appeals). The assessing officer disallowed the job charges paid to five parties as they were unable to be traced or found genuine. The assessee contended that payments were made through account payee cheques, tax was deducted at source, and necessary returns were submitted to the authorities. The job work was carried out at the assessee's premises, and the quantity of work done matched the charges paid. The Commissioner (Appeals) found the payments reasonable and deleted the addition. The ITAT upheld the Commissioner's decision, noting that the payments were made through cheques, tax was deducted, and the job work was done at the assessee's premises, justifying the deletion of the addition.

Deletion of Addition of Delayed Payment of PF:
The assessing officer made an addition of Rs. 5,911 for delayed payment of PF, which was deleted by the Commissioner (Appeals) on the grounds that the payment was made in the accounting year. However, the ITAT found this view incorrect as per the provisions of section 43B(b) and clause (va) of sub-section (1) of section 36, which required payments to be made on specified due dates. The ITAT set aside the Commissioner's order and restored that of the assessing officer, allowing this ground of appeal. As a result, the appeal was partly allowed.

In conclusion, the ITAT upheld the deletion of the addition of job charges but allowed the addition of delayed payment of PF. The decision was based on the compliance with tax deduction and payment methods for job charges, while the delayed payment of PF did not meet the statutory requirements.