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Income Tax Appellate Tribunal - Hyderabad

Asst. Commissioner Of Income Tax, ... vs Deloitte And Touche Assurance And ... on 21 September, 2021

         IN THE INCOME TAX APPELLATE TRIBUNAL
          HYDERABAD BENCHES "B" : HYDERABAD
              (THROUGH VIDEO CONFERENCE)

      BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER
                        AND
     SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER

                       I.T.A. No.503/HYD/2020
                       Assessment Year: 2018-19

The Assistant Commissioner                 M/s.Deloitte And Touche
of Income Tax, Circle-8(1),                Assurance And Enterprise
(Erstwhile jurisdiction: DCIT,          Vs Risk Services India Private
Circle-17(1), Hyderabad)                   Limited,
Hyderabad                                  Hyderabad
                                           [PAN: AABCD9794N]

           (Appellant)                                (Respondent)

          For Revenue            : Shri Rohit Mujumdar for
                                   Shri Srikanth, DR
          For Assessee           : Shri S.P.Chidambaram, AR

             Date of Hearing                 :   20-09-2021
             Date of Pronouncement           :   21-09-2021

                                  ORDER

PER BENCH :

This Revenue's appeal for AY.2018-19 arises from the CIT(A)-5, Hyderabad's order dated 13-07-2020 passed in case No.10233 / 2019-20 / CIT(A)-5, involving proceedings u/s. 143(1) of the Income Tax Act, 1961 [in short, 'the Act'].

2. Coming to the sole substantive issue of ESI/PF disallowance of Rs.2,05,22,220/- which stands deleted in the CIT(A)'s order, the assessee's and Revenue's plea before us are :- 2 -:

that the same had 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) but also u/s.43B of the Act vide Finance Act, 2021 followed by the CBDT's Memorandum of Explanation that the same applies w.e.f. 01- 04-2021 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 w.e.f.01-04-2021 only. We hold that the impugned disallowance has been rightly deleted in the CIT(A)'s order in view of all these latest developments. The Revenue fails in its sole substantive grievance therefore.

3. This Revenue's appeal is dismissed in above terms.

Order pronounced in the open court on 21 s t September, 2021 Sd/- Sd/-

 (INTURI RAMA RAO)                             (S.S.GODARA)
ACCOUNTANT MEMBER                            JUDICIAL MEMBER
Hyderabad,
Dated: 21-09-2021
TNMM
                               :- 3 -:
                                                   ITA No. 503/Hyd/2020




Copy to :

1.The Assistant Commissioner of Income Tax, Circle-8(1), Hyderabad. (Erstwhile jurisdiction: DCIT, Circle-17(1), Hyderabad).

2.M/s.Deloitte And Touche Assurance And Enterprise Risk Services India Private Limited, Deloitte Tower 1, 13th Floor, Sy.No.41, Gachibowli, Hyderabad.

3.CIT(Appeals)-5, Hyderabad.

4.Pr.CIT-5, Hyderabad.

5.D.R. ITAT, Hyderabad.

6.Guard File.