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[Cites 13, Cited by 10]

Income Tax Appellate Tribunal - Delhi

Hind Securities Services And House ... vs Ito, Ward-28(5), Delhi on 25 April, 2022

                     IN THE INCOME TAX APPELLATE TRIBUNAL
                           DELHI BENCH 'G', NEW DELHI

         BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER
              AND SH. KUL BHARAT, JUDICIAL MEMBER

Sr.      ITA No(s)       Asst.               Appeal(s) by                   Assessee By     Revenue By
Nos                     Year(s)             Appellant      vs.
                                             Respondent
                                       Appellant         Respondent
1.    1622/Del/2021    2018-19    Shades of India Crafts   Circle - 22(2)   Shri PC Yadav   Shri Umesh
                                         Pvt. Ltd           New Delhi                       Takyar, Sr.
                                   C-277, Flats Gofview                                     DR
                                    Apartments Saket,
                                   New Delhi - 110 017

                                  PAN : AAACS 0089 C

2.    1623/Del/2021    2019-20            --do--              --do--            --do--         --do--

3.    1550/Del/2021    2017-18    Hind Securities and          ITO          Shri Sourav        --do--
                                    House Keeping          Ward - 28(5)     Roha, C.A.
                                   19/187D, Pushpa            Delhi
                                   Bhawan, Dakshin
                                  Puri Extension, New
                                    Delhi-110 062

                                  PAN : AAFFH 0038 L

4.    1551/Del/2021    2018-19            --do--              --do--            --do--         --do--
5.    1552/Del/2021    2019-20            --do--              --do--            --do--         --do--
6.    1558/Del/2021    2019-20    Essex Farms Pvt. Ltd     Circle - 8(2)    Shri Ranjan        --do--
                                   A, Aurobindo Marg,       New Delhi       Chopra, CA.
                                       New Delhi,
                                      Delhi-110 016

                                  PAN : AAACE 0689 G

7.    1610/Del/2021    2018-19          Anil Behl             NEAC             -None-          --do--
                                  99C, Eastern Avenue,        Delhi
                                      Sainik Farm,
                                   Khanpur, New Delhi
                                  South Delhi - 110062

                                  PAN : AAAPB 3955 F
8.    1633/Del/2021    2017-18      EDAG Production           ACIT             -None-          --do--
                                  Solutions India P. Ltd    New Delhi
                                     125b, Somdatt
                                  Chamber-I, 5, Bhikaji
                                    Kama Place, New
                                     Delhi-110 066

                                  PAN : AAACE 6666 K
                                                 2

9.    1645/Del/2021   2017-18   Sterling Management      DCIT-CPC        Shri            --do--
                                and Project Services       Delhi         Priyanshu
                                       Pvt. Ltd,                         Goyal and
                                  C-17, First Floor,                     Shubham,
                                 Punjabi Bagh West,                      C.A.
                                    Shivaji Park,
                                   Delhi - 110 026
                                PAN : AAJCS 0784 R
10.   1650/Del/2021   2018-19   Dharmender Sharma           AO           Shri J. S       --do--
                                House No.270, Sec-5,      Gurgaon        Kochar, C.A.
                                 Gurugram, Gurgaon
                                  Haryana - 122001

                                PAN : ABOPS 7718 J
11.   1652/Del/2021   2019-20       Medsol India          ADIT               -None-      --do--
                                 Overseas Pvt. Ltd.        CPC
                                H-421, Govindpuram,      GB Nagar
                                 Ghaziabad, UP-02

                                PAN : AAGCM 3612 H
12.   1670/Del/2021   2018-19    Om Prakash & Sons          ITO          Shri Jitender   --do--
                                House No.893, Sec-14     Ward-1(1)       Verma, C.A.
                                    Faridabad,           Faridabad
                                  Haryana-121002
                                PAN : AABHO 1042 F
13.   1671/Del/2021   2018-19    SB Protech Pvt. Ltd.       ITO              -None-      --do--
                                  16, DSIDC Sheds,      Ward - 22(4)
                                  Okhla Indl. Area,        Delhi
                                      Phase - I,
                                  New Delhi-110002
                                PAN : AAQCS 4382 N
14.   1679/Del/2021   2019-20      Girdhari Yadav          ADIT          Shri Aashish    --do--
                                 KA-16, Kaushambi,         CPC           Goyal, C.A
                                  Ghaziabad, Uttar       Bengaluru
                                  Pradesh-201 001

                                PAN : AAHPY 8779 R
15.   1681/Del/2021   2019-20    Infogain India Pvt.    Circle - 12(1)   Shri Aarushi    --do--
                                 Ltd., A-16 & A-21,         Delhi        Jain, C.A.
                                   Sec-60, Noida,
                                    UP-201 301
                                PAN : AAACI 8748 Q
16.   1703/Del/2021   2018-19     E. R Automotives          ITO          Shri Alok       --do--
                                197, IDC, Hisar Road      Ward - 3       Sharma, Adv.
                                       Rohtak,            Rohtak
                                  Haryana-124 001

                                PAN : AAAFE 7331 H
17.   1742/Del/2021   2017-18    Comnet Exhibitions         ACIT         Shri B.C.       --do--
                                  Pvt. Ltd., C-103,      Circle -4(2)    Sistavi, C.A.
                                  Okhla Industrial          Delhi
                                 Estate, Phase - III,
                                   Delhi-110 021
                                PAN : AAACC 0685 N
                                                  3

18.   1743/Del/2021   2018-19           --do--             Assessing           --do--      --do--
                                                            Officer,
                                                          Circle-4(2),
                                                           New Delhi
19.   1744/Del/2021   2018-19        Kamini Jain          Ward - 34(4)        -None-       --do--
                                 B-208E, 2nd Floor,          Delhi
                                Gali No. 2, Block - B,
                                 Majlis Park Adarsh
                                       Nagar,
                                  Delhi - 110 033

                                PAN : ANFPJ 1727 K
20.   1786/Del/2021   2019-20    Vlink India Pvt. Ltd.        ITO             -None-       --do--
                                 19/4, Ground Floor,      Ward - 26(3)
                                     Dakshin Pur             Delhi
                                Extension, Ambedkar
                                        Nagar,
                                   Delhi - 1100 02

                                PAN : AACCJ 2868 E
21.   1787/Del/2021   2018-19    Sai Extrumech Pvt.          ITO              -None-       --do--
                                  Ltd., Plot No.69A,      Ward - 2(3)
                                   Gali No.4, 16/5,       Faridabad
                                   Mathura Road,
                                   Karkhana Bagh
                                     Faridabad,
                                  Haryana-121 001

                                PAN : AAPCS 7781 J
22.   1788/Del/2021   2019-20           --do--               --do--            --do--      --do--
23.   1790/Del/2021   2018-19   Skypack India P. Ltd.     Circle - 2(1)    Shri Jai        --do--
                                Sec - 59, Plot No.190,     Faridabad       Prakash, Adv.
                                   Mathura Road,
                                      Faridabad,
                                  Haryana-121 004

                                PAN : AACCS 5331 F
24.   1794/Del/2021   2018-19       Ashok Kumar               JAO          Shri Hemant     --do--
                                 House No.1, Raksha           Delhi        Jain, Adv.
                                 Nikunj, MG Brother
                                Wali Street, Boyalhalli
                                      Bangalore,
                                 Karnataka-110 002

                                PAN : AKHPK 3133 B
25.   1852/Del/2021   2018-19   Colorz N. Style P. Ltd.   Circle - 6(1)       -None-       --do--
                                    Flat No. 32E,          New Delhi
                                 Fourth Floor, Sec-3,
                                  Pocket-C, Dwarka,
                                 New Delhi-110 078

                                PAN : AAFCC 9409 B
26.   1884/Del/2021   2018-19      Rajnish Gandhi         Circle - 31(1)   Shri Sanjeev    --do--
                                D-1/16, Vasant Vihar          Delhi        Goyal, C.A
                                     New Delhi,
                                   Delhi - 110015
                                PAN :AALPG 4909 R
                                                  4

27.   1885/Del/2021   2018-19     Arnit Creations P.      Ward - 3(2)         -None-     --do--
                                Ltd., 205, 38, Vasant       Delhi
                                    Complex, Veer
                                   Savarkar Block,
                                     Shakarpur,
                                   Delhi - 110092

                                PAN : AACCA 4920 G
28.   1920/Del/2021   2018-19   Flying Green Carriers     Circle - 9(1)    Shri Madhav       --do--
                                       Pvt. Ltd.             Delhi         Kapoor, Adv
                                C/o. B K Kapur & Co.
                                Charted Accountants,
                                 17 Navyug Market,
                                  Ghaziabad, Uttar
                                  Pradesh-201 001

                                PAN : AAACF 9272 E
29.   1937/Del/2021   2018-19   Meenakshi Speech &         Assistant         --None--        --do--
                                 Hearing Clinics Pvt.      Director
                                 Ltd., 3, Basement,       Ward - 17(1)
                                   Jagitri Enclave,          Delhi
                                 Shahdara, Delhi-92

                                PAN : AAFCM 5405 M
30.   1938/Del/2021   2019-20           --do--               --do--            --do--        --do--
31.   1939/Del/2021   2019-20    Shrikanta Banerjee       Ward 43(5)       Shri Hemant       --do--
                                  Senjuti, 1st Floor,     Civil Centre     Jain, Adv.
                                Plot No.2, St. No.598,    E-2 Block,
                                   New Town AA2,             Delhi
                                   Bidhannagr (M.
                                 Crop), 24 Parganas
                                North, Kolkata, West
                                    Bengal-70061

                                PAN : ADSPB 5241 M
32.   1736/Del/2021   2018-19     SGM Engineers           Circle - 36(1)   Shri Vijay        --do--
                                 117, Tagore Park,            Delhi        Singhal, CA
                                   Model Town,
                                 New Delhi-110 009

                                PAN : ABLFS 0194 H
33.   1738/Del/2021   2019-20     R V Interiors Pvt.      Circle - 20(2)   Ms. Nupur         --do--
                                 Ltd., C-11, 1st Floor,    New Delhi       Mangl, C.A.
                                   Anand Niketan,
                                    New Delhi-21

                                PAN : AAECR 9860 J

34.   1713/Del/2021   2018-19    Sainik Surveillance         ITO           Shri              --do--
                                and Security Services     Ward - 22(2)     Venketesh
                                 Pvt. Ltd., H No. 122,     New Delhi       Chaurasia,
                                    Roshan Vihar,                          Adv. and
                                 C-Block, Najafgarh,                       Ms. Mansi
                                  New Delhi-110043                         Jain, C.A.

                                PAN : AAQCS 6092 K
                                                5

35.   444/Del/2022   2019-20       S. K. Facility           ITO            -None-       --do--
                               Management Services      Circle - 4(1)
                               Pvt. Ltd., C/o Kunal      Gurgaon
                                    Aggarwal &
                                Associates, 612, 6th
                                   Floor, Spaxe
                                 Boulevard, Sohna
                                  Road, Sec-47,
                                     Gurgaon
                                Haryana - 122 001

                               PAN : AALCS 0648 C

36.   547/Del/2022   2019-20    Pankaj Kumar, C/o.         ITO          Shri Pramod     --do--
                               PKSN Associates, 1G-     Ward - 3(2)     Ratra, C.A
                                43, BP Second Floor      Gurgaon
                                  NIT, Faridabad,
                                 Haryana- 121 001

                               PAN : AIOPK 6966 D

37.   451/Del/2022   2019-20   Jaman Lal/Individual        ITO          Ms. Nupur       --do--
                                 RZ-29C, M Block       Ward - 62(2),    Mangla, C.A.
                                Palam Colony, Raj         Delhi
                                 Nagar, Part - II,
                               South Delhi - 110045

                               PAN : AABPL 4559 J
38.   479/Del/2022   2018-19     Robin Enterprises     Ward - 6(2)(1)   Shri J. S.      --do--
                                1285/5, Gali No.12,       Delhi         Kochar, Adv..
                                   Patel Nagar,
                                    Gurugram,
                                 Haryana-122001

                               PAN : AAFFR 9282 A
39.   480/Del/2022   2019-20          --do--           AD of Income         --do--      --do--
                                                        Tax - CPC
                                                        Bengaluru
40.   487/Del/2022   2018-19       Deepak Behl             ACIT         Shri Sanjeev    --do--
                                 IA-9C, Phase - I,     Circle - 34(1)   Jain, C.A.
                                   Ashok Vihar,            Delhi
                                   Delhi-110052

                               PAN : AEZPB 7448 C

41.   501/Del/2022   2018-19   Balwan Singh Kundu      Ward - 70(2)        -None-       --do--
                                H.No. 38/9, Kishan        Delhi
                                Garh, Vasant Kunj
                                New Delhi-110007

                               PAN : AKIPK 8826 G
42.   576/Del/2022   2019-20    IE Auto Industrial         DCIT         Shri A. K.      --do--
                               Enterprises Pvt. Ltd,   Circle - 12(1)   Maheshwari,
                                 E-4, Model Town           Delhi        C.A.
                                  Delhi - 110009

                               PAN : AABCI 4078 A
                                                 6

43.   1649/Del/2021   2017-18         S. S. Saib          Assessing          -None-      --do--
                                Construction Pvt. Ltd.     Officer,
                                   House No.2043,         Faridabad
                                 Multani Mohallah,
                                  North West, Delhi
                                 New Delhi-110034

                                PAN : AAPCS 6297 M
44.   1984/Del/2021   2017-18           ACIT              Gong Cheng      Shri           --do--
                                    Circle - 10(1)       Communicati      Vasudevan
                                        Delhi            ons Pvt. Ltd.,   and Shir
                                                            E-42/2,       Mahender
                                                             Okhla        Singh, Adv.
                                                           Industrial
                                                         Area, Phase-II
                                PAN : AACCO 2154 J       New Delhi-20
45.   1988/Del/2021   2019-20      GSJ Envo Ltd.,        Circle - 10(2)   Shri           --do--
                                #51, Hemkunt Colony          Delhi        Venkatesh
                                  South Delhi, New                        Chaurasia,
                                       Delhi                              Adv
                                                                          And
                                PAN : AAACG 6001 G                        Ms. Mansi
                                                                          Jain, C.A.
46.   1991/Del/2021   2019-20   Ujjivan Small Finance     DCIT-25(1)      Ms. Abarna     --do--
                                      Bank Ltd.,            Delhi         and
                                   Plot No.2364/8,                        Ms. Anantha,
                                    Khampur Raya                          C.A
                                     Village, Shadi
                                 Kampur, Main Patel
                                  Road, Patel Nagar
                                   Delhi - 110 008

                                PAN : AABCU 9603 R
47.   1998/Del/2021   2018-19    Raj Kumar Kaushik        Ward - 3(4)        -None-      --do--
                                  604/01, Opp. Fire        Gurgaon
                                Station, New Rly Road
                                  Colony, Gurgaon,
                                  Haryana - 122001

                                PAN : ANPPK 3987 L
48.   2003/Del/2021   2018-19    Shiv Pratap Singh       Ward - 1(2)(3)   Shri Hemant    --do--
                                      Kunwar               Meerut         Jain, Adv.
                                 508, Begum Bagh
                                  Chakbandi Road
                                  Karoli Ki Kothi,
                                   Meerut, UP-01

                                PAN : AFMPK 3273 Q
49.   435/Del/2022    2018-19      R D Enterprises       Ward - 59(7)        -None-      --do--
                                   Villa No. A-458,
                                  Amarpali Leisure
                                 Valley, Plot No. GH-
                                02, Sec tech Zone-04,
                                Greater Noida, UP-06

                                PAN : AAKFR 3537 K
                                               7

50.   441/Del/2022   2018-19      Singh Paramjit         AO          -None-   --do--
                                Navyar, North West   Ward - 36(2)
                                  Delhi, 452/8,         Delhi
                                Bhushan Bhawan
                                Ring Road Flyover
                                     Azadpur,
                                   New Delhi-33

                               PAN : AABPN 0741 N
51.   443/Del/2022   2018-19       S. K. Facility        ITO         -None-   --do--
                               Management Services   Circle - 4(1)
                                      Pvt. Ltd.,      Gurgaon
                               C/o. Kunal Aggarwal
                                & Associates, 612,
                                  6th Floor, Spaxe
                                 Boulevard, Sohna
                                   Road, Sec-47,
                               Gurgaon, Haryana-01

                               PAN : AALCS 0648 C


           Date of hearing:                       25.04.2022
           Date of Pronouncement:                 25.04.2022

                                        ORDER

PER BENCH :

The present appeals are filed by the above mentioned assesses and Revenue feeling aggrieved by the orders passed by appellate authority for various assessment years mentioned hereinabove.

2. Since the issue in all the appeals are common, therefore we clubbed all of them together for the sake of brevity and convenience. However, we are taking ITA No.1622/Del/2021 as a lead case wherein assessee has raised the following grounds:

"1. That on facts and circumstances of the case, the order passed by the Ld. CIT(A) is bad both in the eyes of law and on facts.
8
2. The Ld CIT(A) has erred on facts and in law in upholding the order passed by the Assessing Officer under Section 154/143(1) of the IT Act, 1961.
3. The Ld CIT(A) has erred on facts and in law in confirming the addition of Rs.11,81,760/- made by the Assessing officer by invoking the provisions of section 36(1)(va) of the Act, 1961.
4. That the Ld CIT(A) has erred on facts and in law ignoring the well-established judicial pronouncements including that of the jurisdiction High Court.
5. That Ld CIT(A) has erred on facts and in law in holding that the explanation inserted u/s 36(i)(va) is retrospectively effective while the Memorandum explaining the provisions of Finance Bill 2021 clearly mandates that the amendment will take effect from 01.04.2021 and will accordingly apply to the assessment year 2021-22 and subsequent assessment years.
6. That the impugned appellate order is arbitrary, illegal, bad in law and in violation of rudimentary principles of Contemporary jurisprudence.
7. That the appellant craves leave to add/alter/any/all grounds of appeal before or at the time of hearing of the appeal."

3. Similar grounds with different amounts and assessment years have been raised in other appeals but however the sum and substance and the issue involved in all the appeals are identical.

4. Before us, at the outset, Learned AR submitted that the sole grievance of the assessee is confirming the additions on account of delay in deposit of employee's contribution towards provident fund and ESI fund.

9

5. Before us, Learned AR submitted that additions has been made in the intimation issued by CPC, Bangalore u/s 36(1)(va) of the Act for the reason that the contribution received towards PF/ESIC by the assessee from its employees was not deposited before the due date. He submitted that though there has been delay in deposit of PF/ESIC Contributions but all the contributions received by the assessee from its employees have been deposited with the appropriate authorities before the filing of return of income by the assessee. He therefore submitted that since the amounts have been deposited before the filing of return of income, no disallowance is called for and for aforesaid proposition, he relied on the decision in the case of Azamgarh Steel & Power vs. CPC in ITA No.1626/Del/2020 dated 31.05.2021 and CIT vs. AIMIL Ltd. [2010] 188 Taxman 265 (Delhi) and various other decisions.

6. Learned DR on the other hand supported the order of lower authorities and also placed reliance on the decision of Delhi Tribunal in the case of Vedvan Consultants Pvt. Ltd. vs DCIT in ITA No.1312/Del/2020 order dated 26.08.2021. He also submitted that the amendment brought out by Finance Act 2021 would be applicable to the present case as by the amendment it has been clarified that provisions of Section 43B of the Act shall not apply and shall be deemed never to have been applied to a sum received by the assessee from any of his employees to which the provisions of sub clause (x) of Clause (24) of Section 2 applies.

10

7. We have heard the rival submissions and perused the material available on record. The issue is no more res-integra. The issue has already been settled in favour of the assessee by various judicial pronouncements by the Tribunal. The Hon'ble Jurisdictional High Court of Delhi in the case of PCIT vs. Pro Interactive Service (India) Pvt. Ltd. ITA no. 983/2018 dated 10.09.2018 has already taken a view in favour of the assessee by holding as under:

"In view of the judgement of the Division Bench of Delhi High Court in Commissioner of Income Tax versus AIMIL Limited, (2010) 321 ITR 508 (Del.) the issue is covered against the Revenue and, therefore, no substantial question of law arises for consideration in this appeal.

The legislative intent was/is to ensure that the amount paid is allowed as an expenditure only when payment is actually made. We do not think that the legislative intent and objective is to treat belated payment of Employee's Provident Fund (EPD) and Employee's State Insurance Scheme (ESI) as deemed income of the employer under section 2(23)(x) of the Act."

8. As far as reliance by Learned DR on the amendment brought out by Finance Act 2021 is concerned, "notes on clauses" to the Finance Bill 2021 clearly states that the amendment will take effect from 1st April 2021 and will apply in relation to the assessment year 2021-22 and subsequent assessment year. In such a situation, we are of the view that the amendment brought out by Finance Act 2021 does not apply to the assessment year under consideration.

11

9. Before us, Revenue has not placed any material on record to demonstrate that the aforesaid order cited hereinabove has been overruled/stayed/set aside by higher judicial forum. In view of the aforesaid facts, we are of the view that the AO was not justified in denying the deduction claimed by the assessee on account of late deposit of PF/ESI/EPF, albeit before filing the return of income. Admittedly in all the above-stated matters, the Revenue had not contended that the assessee has deposited the contribution after the filing of the return of income. In view of the above, Respectfully following the decision of the Hon'ble High Court cited hereinabove, we allow the appeals filed by the assessee and dismiss the appeal of the Revenue.

10. In the result, all the appeals filed by the assessee are allowed and one appeal filed by the Revenue is dismissed.

Order pronounced in the open court on 25.04.2022 Sd/- Sd/-

      (KUL BHARAT)                       (ANIL CHATURVEDI)
     JUDICIAL MEMBER                    ACCOUNTANT MEMBER
Date:- 25.04.2022
PY*
Copy forwarded to:
1.    Appellant
2.    Respondent
3.    CIT
4.    CIT(Appeals)
5.    DR: ITAT
                                                  ASSISTANT REGISTRAR
                                                        ITAT NEW DELHI