Income Tax Appellate Tribunal - Delhi
Rommana Herbal Care P.Ltd, New Delhi vs Adit Cpc, Bengaluru on 18 May, 2022
IN THE INCOME TAX APPELLATE TRIBUNAL,
DELHI BENCH 'G', NEW DELHI
BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND
SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER
Sr. ITA No(s) Asst. Appeal(s) by Assessee By Revenue By
Nos Year(s) Appellant vs. Respondent
Appellant Respondent
1. 97/Del/2022 2019-20 Shankar Fenestration Assessing Shri Rakesh Shri Sanjay
& Glasses India Officer, Kumar, CA Kumar Nargas,
Pvt.Ltd., F-3, South Ward-2(2)(3), Sr. DR
Side, G.T.Road, Ghaziabad
Industrial Area, Vijay
Nagar, Ghaziabad,
Uttar Pradesh-201001.
PAN : AAYCS8335H
2. 111/Del/2022 2019-20 Dayal Industries Assessing Shri Sanjay --do--
Pvt.Ltd., C/o-Sanjiv Officer, Sapra, FCA
Sapra & Associates, Circle-
LLP Chartered 1(1)(1),
Accountants, C-763, Meerut
New Friends Colony,
New Delhi-110019.
PAN-AABCD2004M
3. 124/Del/2022 2018-19 Shradha Saburi DCIT, --None-- --do--
Hospilatities P.Ltd., Circle-22(2),
CB-190, Ground Floor, New Delhi
Naraina Village,
New Delhi-110028.
PAN-AAICS9541F
4. 127/Del/2022 2019-20 Naresh Kumar ADIT, Shri --do--
Chawla, House Bengaluru S.K.Bansal,
No.2272, Sector-9, CA
Faridabad,
Haryana-121006.
PAN-AAUPC9820C
5. 291/Del/2022 2019-20 Mare Sanitation DDIT, Shri Sant --do--
Pvt.Ltd., CPC, Kapoor, Adv.
A-2, SMA Co-op, Bengaluru
Industrial Estate,
New Delhi-110033.
PAN-AAACM8683J
6. 292/Del/2022 2018-19 --do-- --do-- --do-- --do--
7. 293/Del/2022 2019-20 Dinesh Bhardwaj, DCIT, --None-- --do--
A-5, Ashok VIhar, CPC,
Gurgaon, Haryana. Banglore
PAN-BBDPD3698C
8. 310/Del/2022 2018-19 IDP Education India Assessing S/Shri Kamal --do--
Pvt.Ltd., 5th, 6th & 7th Officer, Sawhney,
Floor, Tower-B, Global National e- Adv. & P.
Gateway, Village Assessment Mehrchandani,
Sikanderpur, Ghosi Centre, Delhi Adv.
Sector-6, Gurgaon,
Haryana-122002.
PAN-AABCI6253M
9. 311/Del/2022 2019-20 --do-- ADIT, CPC --do-- --do--
Bengaluru
2
10. 313/Del/2022 2018-19 Rohit Salwan, DCIT, CPC --None-- --do--
A-97/1, New Ashok Bengaluru
Nagar, Delhi-110096.
PAN : ATXPS1785L
11. 328/Del/2022 2019-20 Sansun Staffing ITO, Shri Shrey --do--
Solutions Pvt.Ltd., Ward-22(3), Chakarbarty,
B--102/2, East of New Delhi Adv.
Kailash, South Delhi,
New Delhi.
PAN : AAICS2876B
12. 341/Del/2022 2018-19 TK Elevator India Pvt. ACIT, Shri Pravesh --do--
Ltd. (Earlier known as Circle-25(1), Sharma, Adv
Thyssenkrupp New Delhi
Elevator India
Pvt.Ltd.), Plot No.429,
Functional Industrial
Estate, Patparganj,
Delhi-110092.
PAN-AABCT6921F
13. 388/Del/2022 2018-19 Salve Pharmaceuticals CPC Shri Manoj --do--
Pvt.Ltd., Plot No.48, Bangalore Sabarwal,
Second Floor, Rama Adv.
Road, Najafgarh Road
Industrial Area, Kirti
Nagar, Delhi-110088.
PAN : AAJCS6793C
14. 546/Del/2022 2018-19 Pankaj Kumar, ITO, --None-- --do--
C/o-PKSN Associates, Ward-3(2),
IG-43BP, 2nd Floor, Gurgaon.
NI, Faridabad,
Haryana-121001.
PAN : AIOPK6966D
15. 653/Del/2022 2019-20 Rakesh Kumar Gutpa, Assessing Shri Suresh K --do--
C-111, Antriksh Officer, Gupta, CA
Apartment, Sector-14, Delhi
Rohini, Delhi-110085.
PAN : AAKPG4091R
16. 665/Del/2022 2018-19 Shri Garuna DCIT, S/Shri Kapil --do--
Management Service CPC, Goel, Adv. &
Pvt.Ltd., C/o-Kapil Ward-27(3), Sandeep Goel,
Goel, Adv., F-26/124, New Delhi. Adv.
Sector-7, Rohini,
New Delhi-110085.
PAN : AAWCS2278K
17. 673/Del/2022 2019-20 Venus Hotelware Assessing Ms. Vibha --do--
Pvt.Ltd., 39, Officer, Kulkarni,
DLF Industrial Area, Ward-26(2), Adv. & Sh.
Kirti Nagar, Delhi H.Aggarwal,
New Delhi-110015. Adv.
PAN : AAACV0339A
18. 696/Del/2022 2019-20 S.V.S.Facilitators, ADIT, Shri --do--
C-96, Anand Niketan, Banglore J.S.Kochar,
New Delhi-110021. CA
PAN-ACPFS7777P
19. 698/Del/2022 2018-19 Shri Ashok Kumar, ITO, Shri Krishna --do--
874/2, 2nd Floor, Bus Gurgaon Kumar, CA
Stand Near Mamta
Hospital, Secto-12A,
Chowkk Main Post
Office, Gurgaon,
3
Haryana-122001.
PAN : AQKPK0286E
20. 699/Del/2022 2019-20 --do-- --do-- --do-- --do--
21. 734/Del/2022 2018-19 Stelatoes Shoe Bazar, DCIT, Shri Yishu --do--
J-87, Shop No.3, CPC, Goel, CA
Main Market, Bengaluru
Rajouri Garden,
New Delhi-110027.
PAN : ABLFS9758H
22. 744/Del/2022 2018-19 GDA Security P.Ltd., CPC, --None-- --do--
604-611, Eros Bangalore
Apartment, 56,
Nehru Place,
New Delhi-110019.
PAN-AAACG1109P
23. 745/Del/2022 2019-20 GDA Security P.Ltd., CPC, --None-- --do--
601-603, Eros Bangalore
Apartment, 56,
Nehru Place,
New Delhi-110019.
PAN-AAACG1109P
24. 750/Del/2022 2017-18 Prime Services, ACIT, Shri Manoj --do--
F-30, Moti Nagar, Circle-43(1), Sabharwal,
New Delhi-110015. Delhi Adv.
PAN-AAEFP1841N
25. 751/Del/2022 2018-19 --do-- --do-- --do-- --do--
26. 776/Del/2022 2019-20 VE Commercial Asst. DIT, Ms.Manisha --do--
Vehicle Limited, CPC, Sharma, Adv.
3rd Floor, Select City Bengaluru
Walk A-3, District
Centre, Saket,
New Delhi-110017.
PAN-AABCE9378F
27. 935/Del/2021 2019-20 Rommana Herbal Care ADIT, CPC, Shri Arvind --do--
Pvt.Ltd., E-43, Flatted Bengaluru Kumar
Factory Complex, Mehashwari,
Jhandewalan CA
Extension,
New Delhi-110055.
PAN : AAECR1038C
28. 962/Del/2021 2019-20 Amar Ujala Ltd., CPC, ITD Shri Ashish --do--
1101, 11th Floor, Bengaluru Goel, CA
Antriksh Bhawan, 22,
K.G.Marg,
New Delhi-110001.
PAN : AADCA0275H
29. 1024/Del/2021 2018-19 Dayal Fertilizers DCIT, Shri Sanjeev --do--
Pvt. Ltd., CPC, Sapra, CA &
C/o-Sanjiv Sapra & Bangalore Shri Satish
Associates LLP, Sapra, Adv.
Chartered
Accountants, C-763,
New Friends Colony,
New Delhi-110025.
PAN : AAACD8005H
30. 1085/Del/2021 2018-19 Vidhyut Control (India) DCIT, Shri Sunil --do--
Pvt.Ltd.,D-12, CPC, Gupta, CA
Kavi Nagar Industrial Bangalore
Area, Sector-17,
Ghaziabad, Uttar
4
Pradesh-201002.
PAN-AAACV4403B
31. 1101/Del/2021 2018-19 Dinesh Kumar, ITD, CPC, Shri Manoj --do--
C/o-Pankaj Mahesh & Bengaluru Garg, CA
Co., F-36, First Floor,
Raheja Square, Opp.
Medeor Hospital, IMT
Manesar, Gurgaon,
Haryana-122050.
PAN : BKMPK1962N
32. 1102/Del/2021 2019-20 --do-- --do-- --do-- --do--
33. 1105/Del/2021 2019-20 Nepal Singh, ADIT, --None-- --do--
House No.724, Secotr- CPC,
3, Faridabad, Bangalore.
Haryana-121004.
PAN-AONPS8818M
34. 1143/Del/2021 2017-18 Munish Ahmed, ITD, CPC, Shri Canitin --do--
Mohalla Imam Sahab, Bengaluru. Kanwar, Adv.
Old Gohana Road,
Ward-20, Panipat,
Haryana-132103.
PAN- ADXPA0591N
35. 1155/Del/2021 2018-19 Dilbag Singh Kahlon, Jurisdictional --None-- --do--
C-22, Green Park Main, Assessing
New Delhi-110016. Officer,
PAN-AFMPK2345B New Delhi
36. 1156/Del/2021 2019-20 --do-- --do-- --None-- --do--
37. 1183/Del/2021 2019-20 Cargo Construction DCIT, Shri Ashok --do--
Company Pvt.Ltd., Circle-4(2), Khandelwal,
1/9-B, Jindal House, New Delhi. CA
Asaf Ali Road,
New Delhi-110002.
PAN-AAACC5291J
38. 1184/Del/2021 2019-20 Cargo Motors Pvt.Ltd., DCIT, --do-- --do--
1/9-B, Jindal House, Circle-4(2),
Asaf Ali Road, New Delhi.
New Delhi-110002.
PAN-AAACC2744C
39. 1187/Del/2021 2018-19 Bird Execujet Airport NFAC, --None-- --do--
Services Pvt.Ltd., New Delhi
E-9, Connaught Place,
New Delhi-110001.
PAN-AACCB7218E
40. 1213/Del/2021 2018-19 Source Soft Solution ITD, --None-- --do--
Pvt.Ltd., House No.61, CPC,
Lane No.2, Krishna Bengalore.
Nagar, A-1, Safdarjung
Enclave, Vinay Nagar,
New Delhi-110029.
PAN-AALCS1030J
41. 1234/Del/2021 2018-19 M/s. Elegant ITO, Shri --do--
Overseas, 507, CPC, S.Krishanan,
Express Tower, Bengaluru Adv.
Commercial Complex,
Azadpur,
New Delhi-110033.
PAN-AAAFE2738F
42. 1235/Del/2021 2019-20 --do-- --do-- --do-- --do--
43. 1247/Del/2021 2018-19 M/s. Technico CPC, Shri Rahul --do--
Industries Ltd., Bangalore Chaurasia,
5
103, Pratap Bhawan CA
Bahadurshah Zafar
Marg,
New Delhi-110002.
PAN-AAACT4445P
44. 1304/Del/2021 2019-20 Jain Industrial DCIT, Shri Lalit --do--
Products, CPC, Mohan, Adv.
47, 70, IDC, Bengalore
Hisar Road, Hisar,
Haryana-124001.
PAN-AAAFJ5741R
45. 1434/Del/2021 2019-20 B M Gupta Estates ADIT, Shri Saten --do--
Pvt.Ltd., 5948 & 5949, CPC, Delhi Setri, Adv.
Room No.2, Basti
Harphool Singh, Sadar
Thana Road, New
Delhi-110006.
PAN-AADCA0609B
46. 1435/Del/2021 2018-19 Vijay Pal Singh, ADIT, Shri Rajeev --do--
Shop No.05, Amar CPC, Mago, CA
Shree Complex, Delhi Bengaluru
Road, Meerut,
Uttar Pradesh-250002.
PAN-ADLPS2026A
47. 1436/Del/2021 2018-19 Harish Chander, ADIT, --do-- --do--
274/3, Khandsa Road, CPC,
Hari Nagar, Gurgaon, Bengaluru
Haryana-122001.
PAN-AGEPC7410N
48. 1437/Del/2021 2019-20 --do-- DCIT, --do-- --do--
CPC,
Bengalore
49. 1513/Del/2021 2018-19 Airif Engineers DCIT, Shri Vijay --do--
Pvt.Ltd., 117, Tagore CPC, Singla, CA
Garden, Model Town, Bengaluru
New Delhi-110009.
PAN-AADCA8285H
50. 1580/Del/2021 2019-20 Lumenis India ADIT, --None-- --do--
Pvt.Ltd., B-376, CPC, Delhi
3rd Floor, Nirman
Vihar, Near Legal
Banquet Hall,
New Delhi-110092.
PAN-AABCL1617J
51. 1601/Del/2021 2019-20 Singla Motors Pvt.Ltd., DCIT, --None-- --do--
Pingli Road, Karnal, Circle,
Haryana-132001. Karnal
PAN-AAPCS1308D
52. 1602/Del/2021 2018-19 Kishiv Motors Pvt.Ltd., DCIT, --None-- --do--
103, Sector-14, Circle,
Urban Estate, Kaithal, Karnal
Haryana-132001.
PAN-AADCK9038J
53. 1605/Del/2021 2018-19 Sunridges Sporting Assessing --None-- --do--
Goods Pvt.Ltd.,C-32- Officer,
C/o-R.K.Garg, Adv., T- Circle-2(1),
314, Ganga Plaza, Meerut
Meerut-250001.
PAN-AAKCS4748L
54. 1706/Del/2021 2019-20 Systematic ITO, Shri Sushil --do--
6
Communication Ward-22(4), Wadhva, CA
Pvt.Ltd., 216, RG New Delhi
Square, Patparganj,
New Delhi-110092.
PAN-AAGCS6646F
55. 1756/Del/2021 2018-19 Chase Detective & DCIT, Shri Shrey --do--
Security Agency CPC, Chakarbarty,
Pvt.Ltd., G-8, GF Bengaluru Adv
56/1, Kalu Sarai,
Begum Pur, Malviya
Nagar, New Delhi-
110017.
PAN-AACCC5574E
56. 1874/Del/2021 2019-20 Triple Play Interactive CIT(A), Shri Tilak --do--
Network Pvt.Ltd., NFAC Channa, Adv
Premises No.1002,
10th Floor, Galleria
Complex, Gurgaon,
Haryana-122009.
PAN-AADCT3507B
57. 1876/Del/2021 2018-19 Sukbir Singh, DCIT, CPC, --None-- --do--
F-2469, Ansal Palam Bengaluru
VIhar, Gurgaon,
Haryana-122917.
PAN-AQRPS3030P
58. 1878/Del/2021 2018-19 Quality Buildcom CIT(Appeals), Shri Satya --do--
Pvt.Ltd., 301-305, 3rd NFAC Ahuja, CA
Floor, Anupam Arcade,
Mayur Vihar
Extension, Phase-I,
Delhi-110091.
PAN-AAACQ0168L
59. 1916/Del/2021 2019-20 Welgrow Hotels ITO, Shri --do--
Concepts O.Ltd., Ward-27(3), S.Krishanan,
B-6, Geetanjali New Delhi Adv.
Enclave, Malviya
Nagar South,
New Delhi-110017.
PAN-AAACW5407C
60. 1876/Del/2021 2018-19 Sukbir Singh, DCIT, CPC, --None-- --do--
F-2469, Ansal Palam Bengaluru
VIhar, Gurgaon,
Haryana-122917.
PAN-AQRPS3030P
61. 1940/Del/2021 2018-19 Sheryl Strategic Ward-5(1)(1), --None-- --do--
Solutions Pvt.Ltd., Gautam
418, Manhatan 09 Budh Nagar
Tower, Mahagun
Moderne, Sector-78,
Gautam Budh Nagar,
Noida-201301.
PAN-AAXCS5193A
62. 1945/Del/2021 2018-19 Rakesh Kumar Ward-5(3)(1), --None-- --do--
Sharma, H.No.2, SD-5, Gautam
Sector-45, Sadarpur, Budh Nagar
Noida, U.P-201301.
PAN-FEJPS9471H
63. 1957/Del/2021 2019-20 Kaizen Metal & DCIT, Shri Anuj --do--
Forming Pvt.Ltd., Ward-14(1), Tiwari, Adv.
J-89, UPSIDC Site-5, Delhi
7
Industrial Area, Area
Kasna, Gr.Noida,
Ghaziabad, U.P.
PAN-AACCK1286B
Date of hearing: 18.05.2022
Date of Pronouncement: 18.05.2022
ORDER
PER BENCH :
The present appeals are filed by the above mentioned assessees feeling aggrieved by the orders passed by appellate authority for various assessment years mentioned hereinabove.
2. Since the issue in all the appeals is common and is related to disallowance of employee's contribution of PF/ESI on account of delay in deposits as per the respective Acts. Therefore, we clubbed all of them together for the sake of brevity and convenience and disposing the same by way of this consolidated order. However, we are taking ITA No.97/Del/2022 [Assessment Year -2019-20] as a lead case wherein the assessee has raised the following grounds:
1. "Ld. CIT(A) has erred in law and on merits of the case was not justified in confirming the addition of Rs 40504/-
& Rs. 236490/- made by A.O (CPC) on account of late deposit of employee contribution towards ESI/PF , even it is paid before due date of filing of ITR in view of Section 43B of the Income Tax Act, 1961 and ignored various judicial pronouncement cited by the assessee like CIT v. 8 Alom Extrusions Ltd. [2009] 319 ITR 306 (SC); CIT v. Vinay Cement Ltd. [2007] 213 CTR 268 (SC); Pr. CIT v. Raj. State Bev. Corpn. Ltd. [2017] 84 taxmann.com 185 (SC); CIT v. AIMIL Limited [2010] 321 ITR 508 (Delhi) In a latest order dated 10.09.2018 the Jurisdictional High Court of Delhi in ITA 983/2018 Pro Interactive Service (India) Pvt. Ltd has held this issue in the favor of assessee and held that: 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(24)(x) of the Act."
2. CIT(A) has erred in law in confirming the disallowance of employee contribution to ESI in the light of amendment in sections 36(1)(va) as well as in section 43B by inserting corresponding Explanations through Finance Act, 2021. Although the impugned employee PF/ESI now comes under the provision of section 36(1)(va) only, but the memorandum explaining Finance Bill, 2021 says that these amendments will take effect from 01.04.2021 and will accordingly apply to AY 2021-22 and subsequent Assessment Years. Thus the legislature itself has condoned the impugned default before 01.04.2021.
3. Latest Case Laws relied upon After amendment in Finance Act 2021(Covered Matter) 9 Insta Exhibitions Private Limited vs ACIT ITA No 6941/DEL/2017 (and ITA no 4959/DEL/2016) wherein it was held that belated payments of ESI and PF cannot be treated as deemed income u/s 2(24). Further it was held that 'notes on clauses introducing Finance Bill holds that amendment is effective from A.Y 2021-22' and thus deleted the addition on this account.
Shashi Rajawat u/s ITO (ITAT Jaipur) (Pronounced on 12.10.2021) Employee contribution towards ESI/PF though paid before due date of filing of return of Income Tax u/s 139(1) is hereby directed to be deleted. CIT (A) referred explanation to 36(1)(v)(a) and 43 B by Finance Act 2021 and referred the rationale of amendment as explained in memorandum, However, he has simply failed to consider the express wording as the ITAT memorandum which say "these amendments will take effect from 01.04.2021 and will accordingly apply to assessment year 2021-22 and subsequent assessment years.
Vansh Jain vs ITO (ITA No.1853/Del/2020) (Pronounced on 13.10.2021) Since in the instant case the assessee admittedly has deposited the employees' contribution to PF & ESI before the due date of filing of the income tax return, therefore, respectfully following the decisions cited (supra), I hold that the Ld. CIT(A) is not justified in sustaining the adjustment made by the A.O-CPC of Rs.3,26,330/- on account of belated payment of employees' contribution to 10 PF & ESI. I, therefore, set aside the order of the Ld. CIT(A) and direct the A.O. to delete the disallowance. The grounds raised by the assessee are accordingly allowed.
Adama Solution Pvt. Ltd., New Delhi
ITA.No.1800/Del./2020 (Order pronounced on
13.10.2021)
The amendment made in section 36(1)va) is effective from 01.04.2021 and will, accordingly apply in relation to A.Y. 2021-2022 and subsequent assessment year. In view of this we allow the solitary ground of appeal raised by the assessee holding that the addition/disallowance made by the learned assessing officer of late deposit of employees contribution to the provident fund and ESI, as it is deposited before the due date of the filing of the return of an income but beyond the due date prescribed Under the respective provident fund and ESI laws is not sustainable in law. In the result, appeal of the assessee is allowed." Since in the instant case the assessee admittedly has deposited the employees' contribution to PF & ESI before the due date of filing of the income tax return, therefore, respectfully following the decisions cited (supra), I hold that the Ld. CIT(A) is not justified in sustaining the adjustment made by the A.O-CPC."
3. Similar grounds with different amounts and assessment years have been raised in other appeals but however, the sum & substance and the issues involved in all the appeals are identical. 11
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.
5. Before us, Learned AR submitted that additions have been made in the intimation issued by CPC, Bangalore u/s 36(1)(va) of the Income Tax Act, 1961 ("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 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.
12
6. Learned Sr. 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.
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. in ITA No.983/2018 [Del.] order dated 10.09.2018 held 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.13
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 Ld. Sr. 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 01st April 2021 and will prospectively 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.
9. Before us, the 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 14 contended that the assessee has deposited the contribution after the filing of the return of income.
10. We have proceeded to conclude the issue of allowability of expenses attributable to employee provident fund and employee state insurance scheme on the assurance that the employee's contributions towards PF & ESI have been deposited before the due date of filing of return of income. However, the Revenue shall be at liberty to seek restoration of the appeal where it is found as a matter of fact that the assessee has failed to deposit the employee's contribution before the due date of filing of return of income stipulated u/s 139(1) of the Act in accordance with law. In view of the above and respectfully following the decision of the Hon'ble Jurisdictional High Court of Delhi cited hereinabove, we allow the appeals filed by the captioned assessees.
11. Apropos to ITA No.111/Del/2022 concerning Assessment Year 2019-20 in the case of Dayal Industries Pvt.Ltd. appearing at Serial No.2 captioned above, it was pointed out on behalf of the assessee that the factual position in the instant case is materially different vis-à-vis other cases. It was pointed out that there was no delay whatsoever on the part of the assessee to deposit employee's contribution towards PF & ESI as stipulated under the respective 15 Acts. However, typographical error occurred in the Tax Audit Report for which the relevant facts were placed before the Ld.CIT(A) as well. The relevant facts have also placed on record before the Tribunal as well.
12. In the result, all captioned appeals of the respective assessees are allowed.
Order pronounced in the open court on 18.05.2022.
Sd/- Sd/-
(PRADIP KUMAR KEDIA) (KUL BHARAT)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Date:-18.05.2022
*Amit Kumar*
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
ASSISTANT REGISTRAR
ITAT NEW DELHI