Income Tax Appellate Tribunal - Hyderabad
Crescent Roadways Private Limited , ... vs Dy. Commissioner Of Income Tax , ... on 1 July, 2021
IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD 'B' BENCH : Hyderabad
(Through Video Conference)
Before Shri S.S. GODARA, Judicial Member
and
Shri L.P. SAHU, Accountant Member
ITA No. 1952/Hyd./2018
Assessment Year: 2015-16
M/s Crescent Roadways Private Limited. vs. Dy.CIT, Circle 1(2)
Secunderabad Hyderabad
[PAN: AABCC9003F]
(Appellant) (Respondent)
For Appellant: Sri S.Rama Rao, Adv.
For Respondent : Sri Rohit Mujumdar, DR
Date of Hearing : 10/06/2021
Date of Pronouncement : 01/07/2021
ORDER
PER S.S. GODARA, J.M.
This assessee's appeal for A.Y. 2015-16 arises against the Commissioner of Income Tax (Appeals) "[CIT(A)]"-1, Hyderabad's order dated 11.06.2018 passed in case no. 0109/2018-19 in proceedings u/s 143(3) of the Income Tax Act, 1961 [in short 'the Act'].
Heard both the parties. Case file perused.
The Assessee has raised the following substantive grounds in its appeal.
"2. The ld.CIT(A) erred in confirming the addition of Rs.2,83,203/- made by the Assessing Officer representing delay in remittance of employees contribution towards provident fund.
ITA 1952/Hyd/2018 AY: 2015-16 M/s Crescent Roadways Pvt. Ltd.
3. The ld.CIT(A) erred in confirming the addition of Rs. 44,129/- made by the Assessing Officer representing delay in remittance of employees contribution towards ESI.
2. Coming to the sole substantive issue of ESI/PF disallowance of Rs. 3,27,332/-, the assessee's and Revenue's plea that the same has been paid before the due date of filing sec. 139(1) return and after the due date prescribed in the corresponding statutes; respectively. We notice in this factual backdrop that the legislature has not only incorporated necessary amendment in Sections 36(1)(va) as well as 43B vide Finance Act, 2021 to this effect but also the CBDT has issued Memorandum of Explanation that the same applies w.e.f. 1.4.2021 only. It is further not an issue that the foregoing legislative amendments have proposed employers' contribution/ disallowance u/s 43B as against employee's contribution u/s 36 (va) of the Act; respectively. However, keeping in mind the fact that the same has been clarified to be applicable only with prospective effect from 1.4.2021, we hold that the impugned disallowance is not sustainable in view of all these latest developments.
The impugned ESI/PF disallowance is deleted therefore.
This assessee's appeal is allowed in above terms.
Order pronounced in Open Court on 01st /07/2021.
Sd/- Sd/-
(L.P. SAHU) (S.S. GODARA)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 01st July, 2021
*gmv
2
ITA 1952/Hyd/2018 AY: 2015-16 M/s Crescent Roadways Pvt. Ltd.
Copy of Order forwarded to:
1. M/s Crescent Roadways Private Limited, No. 512, Chenoy Trade Centre, No.116, Park Lane, Secunderabad 500 003, Telangana
2. Dy.CIT, Circle 1(2), Hyderabad
3. JCIT, Range 1, Hyderabad 4 CIT(A)-1, Hyderabad 5 Pr.CIT-1, Hyderabad .
6 D.R. ITAT Hyderabad 7 Guard File 3