Income Tax Appellate Tribunal - Chandigarh
Digiqal Solution Services Pvt.Ltd, ... vs Ito-Ward-5(1), Chandigarh on 4 October, 2021
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "ए", च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH 'A', CHANDIGARH
ी संजय गग , याय क सद य एवं ीमती अ नपण
ू ा गु%ता, लेखा सद य
BEFORE: SHRI SANJAY GARG, JUDICIAL MEMBER
AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA No.176/Chd/2021
नधा रण वष / Assessment Year : 2019-20
Digiqal Solution Services Pvt. Ltd., बनाम The Assistant Director of
SCO 61, Sector 26, Chandigarh Income Tax,
CPC, Bengaluru
ITO, Ward-5(1),
Chandigarh.
थायी लेखा सं./PAN NO: AAGCD7856A
अपीलाथ /Appellant यथ /Respondent
नधा रती क ओर से/Assessee by : Shri Sudhir Sehgal, Adv.
राज व क ओर से/ Revenue by : Smt.Meenakshi Vohra, Addl. CIT
सन
ु वाई क तार$ख/Date of Hearing : 26.08.2021
उदघोषणा क तार$ख/Date of Pronouncement : 04.10.2021
(Hearing through webex)
आदे श/ORDER
Per Annapurna Gupta, Accountant Member :
Th e p re se n t a p p e a l ha s b ee n p refe r re d by the a sse ssee a ga i nst the or de r of th e Le a r n e d C om mi ss ion e r of I n come Ta x ( A pp e a ls ), De lh i [( i n sh or t th e 'Ld . C I T( A) ] N ati on a l Fa c e le ss A p pe a l C e ntre d a te d 2 5 .0 5 .2 0 2 1 r e l a ti ng to ITA No.114/Chd/2021 A.Y. 2019-20 Page 2 of 6 a sse ssme nt ye a r 20 1 9 -2 0 , p a s sed u /s 2 5 0 of t h e o f t he I nc ome Ta x Act , 19 6 1 ( h e re i na f te r r e fe r re d to a s ' Act ').
2. Th e sol it a ry i ss ue i n the p re se nt a p p e a l re l a te s to t he a dd i ti on ma d e in t he i n ti ma tio n ma d e to the a sse s se e on a ccou nt of de la ye d pa y me n t o f ES I a nd PF amoun ti ng to Rs. 6, 8 7 ,3 0 9 /- b y i n vok i ng th e p r ovi si on s of se c ti on 3 6 (1 ) ( v) of the Ac t. The Ld .C I T(A ) up h e l d th e a d d i tio n h ol d in g tha t the a me n dme nt ef fe cte d b y the F in a nc e A ct, 2 0 21 t o se cti on 43 B of the A ct b y i ns e r ti on o f Exp l a na t ion -5 a nd se cti on 36 ( 1 )( va ) of th e A ct b y i ns e r ti on of Exp la n a ti on -2 , b oth to the e ffe c t tha t du e d a te f or pa y me n t of e mp l oye e s' con tr ib u tio n to ES I a nd P F , for the p ur p ose of c la i mi ng de du cti on of the sa i d a mo un t as pe r the p r ovi si on s of se c tio n 3 6 ( 1 )( va ) of th e Act w a s n ot gove r ne d by se cti on 4 3B sti p ul a ti ng th e d ue d a te t o be t il l t he f il i ng o f re tu r n of in come u /s 139(1) of t he Act me a n i ng th e re by the e mp loy ee s ' c ont r ib u tio n to E SI a n d P F w a s t o b e p a id b y d ue da t e spe c if ie d in th e i r re spe c tive Ac ts f or t he p u rp os e of cl a imi n g d e d uc ti on t he re of. Th e Ld .C I T(A ) he ld th a t t he sa id a me nd me nt t hou gh e ffe c te d b y th e F in a n ce A ct, 2 0 21 b ut wh e n re a d in th e b a ck gr ou nd of t he de ci si on o f th e H on' ble Ap e x C our t in th e ca se of A ll i e d Mot or s P vt . Lt d. Vs . C I T, 9 1 ITA No.114/Chd/2021 A.Y. 2019-20 Page 3 of 6 Ta x ma n, 205 (SC), th e in te nti on of Le gi sl a tur e set out thr ou gh me mor a nd u m t hr ou gh th e F i na n ce A ct w h i le in tr od uc in g t he Exp l a na t ion s to s e ct ion ma d e it cl e a r t hat the sa i d a me nd me nts w oul d a p pl y t o a ll p e n d in g ma tt e r s a s on da t e . Ac cor d ingl y, h e b r u she d a s id e the c onte nt ion o f t he Ld. C ou ns e l f or th e a sse ssee th at th e i ss ue a l rea d y sto od de ci de d i n i ts fa v our b y th e H on 'bl e Jur i sd ic ti ona l H i gh C our t a nd a p p l yin g the a me n dme n ts t o se cti on 4 3 B a nd se c tio n 3 6( 1 ) (v a) of t he A ct d is a ll ow e d the e mp lo ye r s' con tr ib u tio n to ES I a n d p F n ot p a id b e f ore the d ue d a te sp e ci f ie d i n the sa i d Ac ts.
3. B e f ore u s Ld . C oun se l f or the a sse sse e su bmi tt e d t hat va r io us B e n che s of th e I TA T h a v e a l re a d y a d j ud ica te d thi s is sue i n f a vo ur of th e a sse ssee . H e re fe r re d to the de ci si on of the I TA T, H yd e r a b a d Be n ch in th e ca se of Va l ue Mo me n tum Sof tw a r e ; V s. D C I T i n I TA N o. 2 1 97 / H yd /2 01 7 , da t e d 1 9 .0 5 .2 0 21 and th e de cisi on of I TA T C h a nd i ga r h B e n ch in th e ca se of H ote l S ur ya Vs . D C I T in I TA N os .1 3 3 & 13 4 /C h d /2 0 2 1, d a te d 0 5 .0 8 . 20 2 1 . C opy of the or d e r s w as pl a ce d be f ore us .
4. Th e Ld . D R w a s un a b le to b r i ng a ny con tr a r y j udgme nt to ou r n oti ce , n or w a s a n y d i sti ng ui sh in g fa c ts br ou gh t to ITA No.114/Chd/2021 A.Y. 2019-20 Page 4 of 6 our noti ce . He how e ve r re l ie d on the or de r of the CI T( A) .
5. W e ha ve he a r d bo th the p a r tie s . I t is n ot de nie d tha t the e mp l oye e s con tr ib u ti on to ES I a nd P F was a l l ow a b le a nd c la i me d a s d e d uc ti on b y th e a sse ssee on the st r e ng th of va r io us d e c is i ons of th e j ur i sd i cti on a l H i gh C ou r t ho ld i ng con tr ib u tio ns d ep osi te d b y the du e da te o f f i li ng of r e t ur n of in come u/s 13 9 ( 1) of the A ct a s a l low a b l e . The Re ve n ue ha s di sa l l ow e d the sa me i n the i mp ugn e d ye a r b y a pp lyi n g t he a me nd me nt ma d e b y Fi n a nc e A ct 2 02 1 t o se cti on 3 6 (1 ) (v a ) a nd 4 3 B of th e A ct a l l ow in g the c la i m of su ch d e d uc ti on on ly wh e n p a id b y d ue da te s s pe ci fied i n t he i r re spe cti ve Act s, hol d in g th e a me nd me n t to b e a p p lic a b le on a l l pe nd i ng ca s e s pos t the a me nd me n t.
6. W e h a ve gone thr ou gh th e or de rs of the c oor d in a te B e n che s of the I TA T ci te d by th e Ld. C ou ns e l f or the a ss e ssee be fore u s a nd a re a l so a w a re of oth e r de ci s ion s a l so of t he I TA T, D e l hi B e nc h in t he ca s e of I ns ta E xhi b it ion P v t. Ltd Vs. Ad d l. C I T i n I TA N o. 6 94 1 /D e l /2 01 7 , d a te d 0 3 . 08 . 2 02 1 , the de c is io n of I TA T, H yd e r a b a d B e nc h in the c a se of C re sce n t Ro a dw a y s Pv t. Lt d ; Vs . DC I T in I TA N o.1 9 5 2 /Hy d /2 0 1 8, d a te d 0 1 .0 7 .2 0 2 1 , con si ste ntl y ho ld i ng tha t th e a me nd me n t to se c ti on 3 6 (1 ) ( va ) a n d u/s 4 3B of ITA No.114/Chd/2021 A.Y. 2019-20 Page 5 of 6 the A ct e ffe c te d b y the Fi na n ce Act 2 0 2 1 i s a p p l ic ab le pr os p e cti ve l y, rea d in g fr om t he Note s o n C la u se s a t th e ti me of i n tr od uc tio n o f t he Fi n a nce A ct, 2 0 2 1, s pe ci fi call y s ta ti ng the a me n dme nt b e i ng a pp l i ca b le i n r e la ti on to a sse ssme nt ye a r 2 0 2 1 -2 2 a nd sub s e q ue nt ye ar s. Th e r e f ore the a d d it ion , we hol d , c a nn ot b e ma d e on t he s tr e n gth of the ame n dme nt e ffe c te d b y Fi na nc e A ct 2 0 2 1 to se ct ion 3 6 (1 ) ( va ) /43 B of t he Act . Mor e ove r it is an a d mi tte d po si tio n t ha t t he ju ri s di ct ion a l H ig h C our t ha s i n va r io us d e ci si on s he ld tha t e mp loy ee s c ont r ib u tio n to ESI & PF is a l l ow a bl e i f p a id b y the d ue d a te of f il i ng r e tu r n of in come u /s 1 3 9 (1 ) o f t he Ac t. Th e ju r is di ct ion a l H ig h C our t h a s he ld s o i n the f oll ow i ng ca se s:
1) C I T V s. N u ch e m Li mi te d , I TA N o.3 2 3 of 2 0 0 9
2) C I T V s. H e ml a E mb ro id e r y Mi ll s P vt.
Ltd .( 2 01 4 ) , 36 6 I TR 16 7
7. In v ie w of the a b ove , we h old t ha t the cl a i m of e mp loy ee s con tri bu ti on to E SI and PF as per se cti on 36 ( 1 )( va ) of the Ac t ca n not be den ie d i n t he imp u gne d ye a r , i. e . 2 01 9 -2 0 on th e b a si s of a me ndme nt ma de to t he se cti on by Fi na n ce Act 20 2 1 . Th e or d e r of th e Ld . C I T( A) up ho ld i ng the s a id d is a l low a n ce to t he tu n e of Rs . 6 ,8 7 ,3 0 9 /- is the re fo re se t a s id e a nd t he AO i s di r e c te d to a l low t he cl a i m ITA No.114/Chd/2021 A.Y. 2019-20 Page 6 of 6 of th e a s se sse e . .
8. 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 de r p r on oun ce d on 4 t h O ct obe r 2 0 2 1 .
Sd /- S d/-
संजय गग अ नपण
ू ा ग%ु ता
(SANJAY GARG) (ANNAPURNA GUPTA)
याय क सद य/Judicial Member लेखा सद य/Accountant Member
)दनांक /Dated: 4th October, 2021
*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 आय-
ु 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