Income Tax Appellate Tribunal - Chandigarh
Sh. Lakhwinder Singh Panag, Mohali vs Ito, Circle -6(1),, Chandigarh on 28 April, 2022
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "ए", च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH 'A', CHANDIGARH
BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER
AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER
ITA No. 395/Chd/2021
(Assessment Year: 2019-20)
Lakhwinder Singh Panag, बनाम Income Tax Officer,
# 1238, Sector 91, Circle-6(1),
Mohali. Chandigarh.
थायी लेखा सं./PAN NO: AMWPP5825A
नधा रती क ओर से/Assessee by: Shri T.N. Singla, CA
राज व क ओर से/ Revenue by : Smt Priyanka Dhar, Sr.DR
सन
ु वाई क तार ख/Date of Hearing: 28.04.2022
उदघोषणा क तार ख/Date of Pronouncement: 28.04.2022
आदे श/ORDER
Per Vikram Singh Yadav, Accountant Member:
This is an appeal filed by the assessee against the order of Learned Commissioner of Income Tax ( Ap p e a l s) , N a ti on a l Fa c e le ss Ap pe a l C e n tre ( N F AC ) , D e l h i [ i n sh or t th e 'Ld . C I T( A) '] passed u/s 250 of the Income Tax Act, 1961 (in short 'the Act') dated 25.11.2021 for assessment year 2019-20.
2. Re ga r d i ng th e f i rs t g ro un d of a pp e a l, b r ie fl y, the fa c ts of the ca se a re th a t th e a ss e ssee fi le d i ts re tu rn of in come on 31 . 10 . 2 01 9 de cl ar in g tota l in come of R s. 2, 1 7 ,2 8 ,8 8 2 /-, 2 ITA No.395/Chd/2021 A.Y.2019-20 wh i ch w a s p r oc ess e d u/s 1 4 3 (1 ) of th e Ac t a nd in te rms of in ti ma ti on u /s 1 4 3 (1 ) d a te d 0 7 .0 7 .2 0 2 0 is su e d b y C P C , ha d ma de d i sa l l ow a nc e of R s.3 , 4 1, 8 58/- to wa rd s l a te d e p os it of e mp loy ee s ' con tr ib u tio n to ESI & P F.
3. O n a p p e a l , the Ld . C I T( A) , N F AC h a s co nf ir me d th e di sa l l ow a nc e a nd a ga i n st t he sai d or d e r , the a sse s se e h a s now come u p i n a pp e a l be f ore us.
4. D ur i ng th e co urse of he a r in g, the Ld . A R s ub m i tte d tha t t he a s se sse e h a s de p osi te d e mpl oye e s ' con tr ib u ti on tow a r ds ES I a n d P F th oug h w i th t he de la y of f e w d a ys fr om the d ue da te me nti on e d i n the res pe cti ve St a tute s, h ow e ve r , the sa me w a s dep osi te d we ll be f or e the d ue d a te o f f il i ng of re tur n of in come u/s 1 3 9 ( 1) of th e Ac t. I t w a s s ub mi tte d tha t th e sa i d fa ct is n ot u nde r d is p ute a n d whe re s uc h con tr ib u tio n ha s b ee n de p osi te d be fore the due d a te of fi lin g of the re t ur n of inc ome , n o d i sa l low a n ce u/s 3 6 (1 ) ( va ) of the Act ca n be ma de . In su pp or t, r e li a nce wa s p l a ce d on de ci si on of the H on 'bl e P un ja b & H a r ya n a H i gh C our t in th e ca se of CI T V s. H e ml a Emb r oi d e r y Mi ll s ( P) Lt d. , 36 6 I TR 11 7 a n d t he de cis ion o f the H on 'b le S up re me C ou r t i n th e ca se of C I T Vs. Al om E xtr us io n Ltd . , 31 9 I TR 3 06 . I t w a s fu rt he r s ub mit ted th a t th e a for e sa i d d e ci si ons ha v e si nce be e n fol l owe d by the Ho n'b le P unj a b & H a r ya na H i gh C our t 3 ITA No.395/Chd/2021 A.Y.2019-20 in th e ca se o f CI T V s. Ma r k A ut o I n d us tr ie s Lt d. , 3 5 8 I TR 43 , C I T V s. Ka m a l Fa mi l y Tr us t ( 2 0 1 3 ), 2 1 9 Ta x ma n 8 1 a n d C I T Vs. N uc he m Li mite d , 5 9 Ta x ma n n. co m 4 5 5. It w as sub mi tte d th a t the Ld . C I T( A) ha s r e l ie d up on th e a me nd me nt b r oug ht i n b y t he Fi na n ce A ct, 2 021 w he re i n Exp la n a ti on -5 h a s b ee n i nse r te d. I t w a s s ub mi tte d th a t the sa i d a me nd me nt h a s b e e n in se rte d w .e .f . a sse ssme nt ye ar 20 2 1 -2 2 onw a r d s a n d ha ve t o b e r e a d p r os pe cti ve ly a nd n ot re tr ospe c ti ve l y and v a ri ou s B e nc he s of the Tr i bu na l h a s be e n ta k i ng a c ons is te n t v ie w in t hi s re ga r d and our re fe re nce w a s d r a w n to t he d e ci si on of th e C ha n d i gar h B e n che s of th e Tr i b un a l in t he ca s e o f M /s C za r s F auce ts Li mi te d V s. C PC in I TA N o. 25 5 /C hd /2 0 2 1 da t e d 0 2. 1 1 .2 0 21 wh e re in t he re le va nt f in d in gs r e a d a s un de r :
"4. We have heard the submissions and perused th e m a te r i a l a v a i l a b l e o n r e c o r d . It i s s e e n th a t i n t h e p r e s e n t a p p e a l , th e a s s e s s e e h a s o n l y a s s a i l e d t h e d i s a l l o wa n c e s u s t a i n e d b y t h e C IT ( A ) vide his order passed u/s 250(6) of the Act a m o u n t i n g to R s . 4 , 5 2 , 2 3 1 / - o n th e g r o u n d s th a t th e E S I & P F p a y m e n ts we r e n o t m a d e wi th i n t i m e a s p e r th e r e l e v a n t S t a t u t e . T h e c l a i m o f th e a s s e s s e e t h a t t h e p a y m e n ts we r e m a d e b e f o r e th e d u e d a te o f f i l i n g of th e r e t u r n u / s 1 3 9 ( 1 ) wa s h e l d to b e n o t r e l e v a n t . I t i s s e e n t h a t th e s a i d issue as f ar as the presen t Forum is concerned, s t a n d s f u l l y c o v e r e d i n f a v o u r of th e a s s e s s e e n o t o n l y b y t h e c o n s i s t e n t o r d e r s o f th e v a r i o u s B e n c h e s o f t h e IT A T n a m e l y ; t h e o r d e r d a te d 0 3 . 0 8 . 2 0 2 1 of t h e D e l h i B e n c h e s i n th e c a s e o f I n s t a E x h i b i t i o n P v t. L t d . V s A C IT i n IT A 6 9 4 1 / D e l / 2 0 1 7 ; o r d e r d a te d 0 1 . 0 7 . 2 0 2 1 of th e H y d e r a b a d B e n c h i n th e c a s e of Crescent 4 ITA No.395/Chd/2021 A.Y.2019-20 R o a d wa y s Pvt. L td . Vs DCIT in IT A No. 1 9 5 2 / H y d / 2 0 1 8 b u t a l s o c o n s i s t e n t o r d e r s o f th e C h a n d i g a r h B e n c h . I t i s s e e n t h a t a l l a l o n g th e C o - o r d i n a te Benches have held th a t th e a m e n d m e n t s to S e c ti o n s 3 6 ( 1 ) ( v a ) a n d u / s 4 3 B o f th e In c o m e T a x A c t e f f e c te d b y t h e F i n a n c e A c t , 2021 is applicable prospectively and not retrospectively. While coming to the said conclusion, the Benches have relied upon and r e a d f r o m t h e N o te s o n C l a u s e s a t th e t i m e o f i n t r o d u c t i o n of th e F i n a n c e A c t, 2 0 2 1 a n d h a v e held that the amendment is applicable in relation to th e a s s e s s m e n t y e a r 2 0 2 1 - 2 2 a n d s u b s e q u e n t years and not retrospec tively. Thus, in vie w of th i s l e g a l p o s i t i o n a s c o n s i d e r e d b y th e C o - o r d i n a te B e n c h e s a n d t a k i n g n o te of th e d e c i s i o n s of th e j u r i s d i c t i o n a l H i g h C o u r t i n th e c a s e o f C IT V s N u c h e m L i m i t e d IT A 3 2 3 of 2 0 0 9 a n d C IT V s H e m l a E m b r o i d e r y M i l l s P v t . L td . ( 2 0 1 4 ) 3 6 6 IT R 1 6 7 we a r e o f th e v i e w t h a t t h e a d d i t i o n s c a n n o t b e m a d e o r s u s t a i n e d o n t h e s tr e n g th o f th e a m e n d m e n t e f f ec t e d b y F i n a n c e A c t, 2 0 2 1 t o Sections 36(1)(va)/43B of the Act as the legal p o s i t i o n th e r e o n i s v e r y c l e a r . T h e d e p a r t m e n t a l s t a n d th a t i t i s c l a r i f i c a to r y i n n a tu r e h a s c o n s i s t e n tl y b e e n r e j e c t e d . T h u s , i n th e f a c e of th e c l e a r l e g a l p o s i t i o n , a s s e t o u t h e r e i n a b o v e , we f i n d th a t t h e c l a i m o f t h e a s s e s s e e i s t o b e a l l o we d i n t h e y e a r u n d e r c o n s i d e r a ti o n wh i c h i s 2018-19 assessment year. The impugned order, a c c o r d i n g l y , i s s e t a s i d e a n d t h e A O i s d i r e c te d to d e l e te t h e d i s a l l o wa n c e . T h e a p p e a l o f th e a s s e s s e e i s a l l o we d . S a i d o r d e r wa s p r o n o u n c e d i n th e p r e s e n c e o f th e p a r t i e s v i a W e b e x . "
5. P e r c ont ra , t he Ld . D R r e l ie d up on th e a me nd me nt br ou gh t i n by th e F i na n ce Ac t, 20 2 1 w h e re i n Expla na ti on to se c tio n 36 ( 1 )( va ) of th e A ct ha s b ee n in tr od uc ed . I t w a s sub mi tte d tha t f ro m th e r e a d i ng of th e sa i d a me n d me nt i t is e vi de n t th a t the l a w i s a nd ha s a l wa y s b ee n ve r y cl e a r th a t e mp loy ee s ' c ont r ib u tio n to s pe ci fi e d fu nd w i l l not b e a ll owe d a s d e d uc ti on u /s 3 6 (1 ) (v a ) o f th e A ct i f t he re is d e l a y in 5 ITA No.395/Chd/2021 A.Y.2019-20 de po si t e ve n b y a s in gl e d a y a s p e r the d ue d a tes s pe ci fied in th e re spe c ti ve Sta t ute s. I t w a s fu rt he r sub mi tte d th a t th e sa i d a me n d me nt i s o nl y de cl a r a tor y/cl a r i fi ca t or y i n na t ure a nd , i s, th e re f ore , a p p l ic a ble with r e tr os pe cti ve e ffe ct b y ne ce s sa r y in te n dme n t of d ee mi n g n a tu re e xp re ss ly s ta te d the re i n. The Ld . DR a cc or di n gl y su b mit te d th a t i n vi e w of the un a mb ig uou s w or d in g o f th e now a me nd me n t p r ovi s ion s of se c ti ons 3 6 (1 ) (v a ) a nd 4 3 B , i t i s c le a r th a t t he emp l oye e s' con tr ib u tio n c a n b e a ll owe d a s a d e d u cti on onl y i f i t ha d be e n pa i d w it hi n t he p r e s cr i bed d ue d a te s u nd e r the re le va n t S ta tu te s a n d th is p osi ti o n ha s b e e n c la r i fie d by the a for e s a i d a me ndme n t. I t w a s a ccor d i ng ly sub m i tte d th a t the re i s n o i n fi r mit y i n the or d er p a ss e d b y the Ld .C I T(A ) wh e re in he h a s s us ta in e d the di sa ll ow a nc e ma d e u/s 1 43 ( 1 ) of the A ct, b y the C P C o n a ccoun t of a s se s se e 's fa i l ur e to pa y t he e mpl oy ee s ' con tr ib u ti on tow a r d s ES I a n d P F wi th in the p re sc ri be d d u e d a te s a s p e r se cti on 3 6( 1 ) (v a ) o f t he Act . He a c cor d in gl y su pp or te d the or de r o f the l owe r aut hor i ti e s.
6. W e h a ve h e a r d th e ri va l c on te n tions a n d p e r us e d the ma te r i a l a va i la b l e on re co rd . I n the i ns ta nt ca se , i t i s no t i n di sp u te t ha t e mp lo yee s' c on tr ibu tio n t o ES I a n d P F ha d be e n de p osi te d we l l be fo re the du e d a te of f il i ng of r e tu r n of in come u /s 13 9 ( 1 ) of the Ac t. We f ur the r n ote tha t th oug h the l d . CI T( A) h a s not d is p ute d th e v a r iou s de ci si on s of 6 ITA No.395/Chd/2021 A.Y.2019-20 Hon 'b l e P un j a b & Ha r y a na H i gh C our t b ut h a s de ci de d to fol l ow t he de ci sion r e n de re d b y th e H on'b le G uja r a t H ig h C our t. Gi v e n t he d i ve rge n t vi e w s t a ke n b y th e v a ri ou s H ig h C our ts a n d i n the i ns ta n t c a se , the f a ct tha t the ju r is d ic ti on ove r the As se s sing of f ic e r l ie s w i th the H on 'b le Pu nj a b & Ha r ya n a H i gh C our t , in ou r con si d e re d view , th e I d C I T( A) ou gh t to h a v e c on si de re d an d f oll ow e d the de c is io n of the ju ri s di ct ion al Pu nj a b & Ha r ya na H ig h C ou r t, a s e vi dent fr om s e r ie s of d e c is ion s r e fe rre d sup r a , a s t he sa me i s bi n di n g on a l l t he a p pe l l a te a ut hor i ti e s a s we ll a s the Ass e ss i ng of fi ce r un d e r i ts j uri sd i cti on in th e Stat e of Pu nj a b & H a r ya n a . W e fu rt he r n ote tha t the ld C I T( A) h a s re fe rre d to th e ame nd me n t br ou gh t i n b y t he F in a n ce Ac t, 20 2 1 w h e re i n an e xpl a n a ti on ha s been i ntro du ce d to Se c ti ons 3 6 (1 ) (v a) a nd u /s 4 3 B of th e I nc ome Ta x Act . It is a co nsi s te n t p os it ion a c r oss va r i ou s B e nc he s of th e Tr i b un a l in cl ud i ng C ha n d iga rh B e n che s tha t t he a me nd me n t w h ic h ha s b ee n b r ou ght i n by the Fi n anc e A ct, 2 0 2 1 sh a l l a p pl y w. e . f. a sse s sme nt ye a r 2 02 1 -2 2 a nd s ub se q ue n t a s se s sme n t ye a r s a n d the imp ugn e d a ss e ssme n t ye a r be i ng a s se s sme n t ye a r 2 0 1 9-2 0 , the sa i d a me n d men t ca n n ot b e a p pl ie d in the in sta n t ca se . The re fore , con si de r ing th e e n tire ty of fa c ts a nd ci rc ums ta nc e s of t he ca se a nd fol l ow i ng th e de ci si on s of va r io us Hi gh C ou r ts a s w e l l a s C oor d i na te Be n ch e s of the 7 ITA No.395/Chd/2021 A.Y.2019-20 Tr i b un a l re fe rre d a b ove , the add i ti on ma de by way of a dj us tme n t w h il e pr oce s si ng the re tu r n of i ncome u/s 14 3 ( 1) of the A ct, a mou nt in g t o Rs .3 , 41 , 8 58 /- so mad e b y the C PC t ow a rd s the d e po si t of e mpl oye e s ' con tr ib u ti on tow a r ds ES I a n d P F p a i d b e f ore th e d ue d a te of fil in g of the re tur n of i nc ome u/ s 1 39 ( 1 ) of th e A ct, i s he re by d i re cte d to be de le te d a n d t he gr ou nd of a p pea l i s a l low e d.
7. N ow c omi ng to t he a d d iti on a l gr ou nd r a i se d by th e a sse sse e w he re i n th e a s se s se e i s see ki n g to cl a im e d uc a ti on ce s s t o th e t une of R s. 2, 8 5, 8 4 9 /- pa i d a l on gw it h i n come ta x a s a n a l l ow a b le e xpe n d itu re , i t wa s sub mi tte d b y th e l d AR a t the B a r tha t the a sse ssee d oe sn 't w a nt t o pr e ss th e s a id gr oun d of a pp e a l a n d h e n ce , the s a me i s not a d m i tte d a nd di smi ss e d a s n ot p r e sse d .
I n the re su lt , the a p pe a l o f the a s se sse e is p a r tly a l l ow e d . O r de r p r o n o u n ce d o n 2 8 . 0 4 . 2 0 2 2 .
Sd/- Sd/-
(DIVA SINGH) (VIKRAM SINGH YADAV)
याय क सद य/Judicial Member लेखा सद य/Accountant
Member
Dated: 28.04.2022
*रती*
8 ITA No.395/Chd/2021
A.Y.2019-20
आदे श क % त&ल'प अ*े'षत/ Copy of the order forwarded to :
1. अपीलाथ+/ The Appellant
2. %,यथ+/ The Respondent
3. आयकर आयु-त/ CIT
4. आयकर आयु-त (अपील)/ The CIT(A)
5. 'वभागीय % त न0ध, आयकर अपील य आ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायक पंजीकार/ Assistant Registrar Draft dictated 09.03.2022 Sr.PS Draft placed before author 09.03.2022 Sr.PS Approved Draft comes to the Sr.PS/PS 28.04.2022 Sr.PS Order signed and pronounced on File sent to the Bench Clerk 29.04.2022 Sr.PS Date on which file goes to the AR Date on which file goes to the Head Clerk.
Date of dispatch of Order.