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2022 (1) TMI 1149 - AT - Income TaxLate deposit of Employees Contribution to ESI and EPF - AR submitted that the assessee has deposited employees’ contribution towards ESI and PF though with the delay of few days from the due date mentioned in the respective Statutes, however, the same was deposited well before the due date of filing of return of income u/s 139(1) - HELD THAT:- In the instant case, it is not in dispute that employees’ contribution to ESI and PF had been deposited well before the due date of filing of return of income u/s 139(1) of the Act. We find that the issue is squarely covered by the decisions of the Hon'ble Punjab & Haryana High Court as well as other High Courts such as Hon'ble Himachal Pradesh High Court and Hon'ble Rajasthan High Court. We further note that though the Id. CIT(A) has not disputed the various decisions of Hon'ble High Courts including the decision of the jurisdictional Punjab & Haryana High Court but has referred to the amendment brought in by the Finance Act, 2021. It is a consistent position across various Benches of the Tribunal including Chandigarh Benches that the amendment which has been brought in by the Finance Act, 2021 shall apply w.e.f. assessment year 2021-22 and subsequent assessment years and the impugned assessment year being assessment year 2019-20, the said amendment cannot be applied in the instant case. Therefore, considering the entirety of facts addition made by way of adjustment while processing the return of income u/s 143(1) so made by the CPC towards the deposit of employees’ contribution towards ESI and PF paid before the due date of filing of the return of income u/s 139(1) of the Act, is hereby directed to be deleted. - Decided in favour of assessee. Addition on account of provision for gratuity - as submitted that the assessee while filing its return of income has suo-moto disallowed the provision for gratuity and where such adjustment has been made by the CPC while processing the return of income, the same amount to double taxation which cannot stand in the eyes of law therefore, the said addition needs to be deleted - HELD THAT:- It is manifest from the return of income along with the computation of income so filed by the assessee that the provision for gratuity which has been debited in the profit/loss account has been disallowed by the assessee itself and no claim for the provision for gratuity has been made by the assessee while filing its return of income. Therefore, the action of the CPC in disallowing the same will amount to a situation where there is disallowance of provision which has not been claimed at the first place by the assessee and the same will clearly result in double taxation and which cannot be sustained in eyes of law. In the result, the addition so made towards the provision for gratuity is hereby directed to be deleted and the ground of appeal is thus allowed.
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