TMI Blog2022 (3) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... nt cannot be applied in the instant case. Therefore, addition 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. - ITA No. 3/Chd/2022 - - - Dated:- 11-3-2022 - Diva Singh , Member ( J ) And Vikram Singh Yadav , Member ( A ) For the Appellant : Dhruv Goel , CA For the Respondents : Ranjeet Kaur , Sr. DR ORDER Per Vikram Singh Yadav, Accountant Member This is an appeal filed by the assessee against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short the 'Ld. CIT(A)'] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecisions have since been followed by the Hon'ble Punjab Haryana High Court in the case of CIT Vs. Mark Auto Industries Ltd., 358 ITR 43, CIT Vs. Kamal Family Trust (2013), 219 Taxman 81 and CIT Vs. Nuchem Limited, 59 Taxmann.com 455. It was submitted that the Ld. CIT(A) has relied upon the amendment brought in by the Finance Act, 2021 wherein Explanation-5 has been inserted. It was submitted that the said amendment has been inserted w.e.f. assessment year 2021-22 onwards and have to be read prospectively and not retrospectively and various Benches of the Tribunal has been taking a consistent view in this regard and our reference was drawn to the decision of the Chandigarh Benches of the Tribunal in the case of M/s. Czars Faucets Limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mendment is applicable in relation to the assessment year 2021-22 and subsequent years and not retrospectively. Thus, in view of this legal position as considered by the Coordinate Benches and taking note of the decisions of the jurisdictional High Court in the case of CIT Vs. Nuchem Limited ITA 323 of 2009 and CIT Vs. Hemla Embroidery Mills Pvt. Ltd. (2014) 366 ITR 167 we are of the view that the additions cannot be made or sustained on the strength of the amendment effected by Finance Act, 2021 to Sections 36(1)(va)/43B of the Act as the legal position thereon is very clear. The departmental stand that it is clarificatory in nature has consistently been rejected. Thus, in the face of the clear legal position, as set out hereinabove, we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) wherein he has sustained the disallowance made u/s. 143(1) of the Act, by the CPC on account of assessee's failure to pay the employees' contribution towards ESI and PF within the prescribed due dates as per section 36(1)(va) of the Act. He accordingly supported the order of the lower authorities. 6. We have heard the rival contentions and perused the material available on record. 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 further note that though the Ld. CIT(A) has not disputed the various decisions of Hon'ble Punjab Haryana High Court but has decided to follow the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
