Income Tax Appellate Tribunal - Chandigarh
Sh. Paramjeet Singh, Baddi vs Ito, Baddi, on 11 March, 2022
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "बी", च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH 'B', CHANDIGARH
BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER
AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER
ITA No. 414/Chd/2021
(Assessment Year: 2019-20)
Paramjeet Singh, VPO Manpura, बनाम DCIT, CPC Banaglore/
Tehsil Baddi, ITO Baddi Solan, HP.
Baddi, Himachal Pradesh.
थायी लेखा सं./PAN NO: ARBPS0049P
नधा रती क ओर से/Assessee by: Shri Ravinder Kumar Sharma, CA
राज व क ओर से/ Revenue by : Dr.Ranjeet Kaur, Sr.DR
सन
ु वाई क तार ख/Date of Hearing: 08.03.2022
उदघोषणा क तार ख/Date of Pronouncement: 11/03/2022
आदे श/ORDER
Per Diva Singh, Judicial 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 17.11.2021 for assessment year 2019-20 on the following grounds:
1. The Learned CIT(A) has wrongly confirmed the addition of Rs 1397717 under section 36, when in fact the actual ESI and EPF payments were made before the due date of filing the ITR as per challans submitted before CIT(A) and Several Judicial Pronouncements are in favour of the assessee.2 ITA No.414/Chd/2021
A.Y.2019-20
2. Any other ground or grounds as may be urged at the time of hearing."
2. The r e le v ant fa c ts r e l a ta bl e to the is sue a re th a t di sa l l ow a nc e wa s ma d e b y the C e ntr a l P r oce ss ing C e n tre (C P C ) , B e n ga l ur u i n the r e t ur n p roce s se d u/s 1 4 3 ( 1 ) f or l a te pa y me n t of ES I / P F e tc . a s p e r s p e ci fi c A ct. The a sse ssee ca r r ie d the is su e in a ppe a l be fore the F ir st Ap p e l l ate Aut hor i ty u ns ucc e s sfu l ly . The N a ti ona l F a ce les s A pp e a l C e n tre c on fi r med t he or de r re je cti n g t he p r a ye r of the a sse sse e . The a s se ssee h a d p le a de d th a t th e p a yme n ts were ma de w e l l i n ti m e be f ore t he f il i ng of r e tur n u /s 1 3 9 ( 1) of the A ct a n d t hu s w it hi n th e d ue da t e . Th e p r e ce de nt re lied up on w a s not a c c e p te d . Ag gr ie ve d b y t hi s, th e a sse ssee is i n a pp e a l be fo re t he I TA T.
3. 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 3 ITA No.414/Chd/2021 A.Y.2019-20 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 in th e ca se o f CI T V s. Ma r k A ut o I n d ust r 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 4 ITA No.414/Chd/2021 A.Y.2019-20 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 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 . "
4. On t he o the r ha n d , th e Ld . DR r e lie d u po n 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 5 ITA No.414/Chd/2021 A.Y.2019-20 Exp la n a ti on to s e ct ion 36 ( 1 )(va ) of th e Ac t ha s b ee n in tr od uc e d . It w a s su b mitt e d th a t f r om th e r e a di n g of th e sa i d a me n dme nt i t i s e vi de n t th a t t he la w is a n d has a l w a ys be e n ve r y c le a r th a t e mp loy ee s ' c on tr ib ut ion t o s pe ci fie d fu nd w i ll not be a l l ow e d a s de du cti on u/s 3 6 ( 1) ( va ) of th e Act i f t he r e i s d e l a y i n d e p os it e ve n b y a s i ngl e d a y a s p e r the du e d a te s spe ci fie d i n t he re spe c ti ve S ta tu te s . I t w a s fu rt he r su b mitt e d t ha t the sa i d a me nd me nt is onl y de cl a r a tor y/cl a r i fi ca to ry in na t u r e and, is , t he re fore , a pp l ic a b le w i th re tr ospe cti ve e f fe ct b y n e ce ssa ry i nte nd me n t of d e e mi ng na t u r e e x pre ssl y s ta te d the re i n. The Ld . D R a ccor d i ng ly s ub mi tte d th a t in vi e w of the u na mb i guo us wo rd i ng of th e n ow a me n d me nt pr ov is io ns of s e cti on s 36 ( 1 )( va ) and 43B, it is 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 Ac t. 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 ITA No.414/Chd/2021
A.Y.2019-20
5. 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 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 , t he 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 w e 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 7 ITA No.414/Chd/2021 A.Y.2019-20 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 ll a s C oor d i na te Be n che s of the 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 Act , a mou nti n g to R s .1 3 ,9 7 ,7 1 7 /- so ma d 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 .
6. I n the re s ul t, the a p p e a l of t he a sse s se e i s a l lo we d.
O r d e r p r on o u n ce d o n 11 / 0 3 /2 0 2 2 .
Sd/- Sd/- (VIKRAM SINGH YADAV) (DIVA SINGH) लेखा सद य/Accountant Member याय क सद य/Judicial Member Dated: 11/03/2022 *रती*
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 शानुसार/ By order, सहायक पंजीकार/ Assistant Registrar 8 ITA No.414/Chd/2021 A.Y.2019-20