TMI Blog2022 (5) TMI 1566X X X X Extracts X X X X X X X X Extracts X X X X ..... efore filing the return of income. - ITA No(s): 97/Del/2022, 111/Del/2022,124/Del/2022, 127/Del/2022, 291/Del/2022, 292/Del/2022, 293/Del/2022,,310/Del/2022, 311/Del/2022, 313/Del/2022, 328/Del/2022, 341/Del/2022, 388/Del/2022, 546/Del/2021, 653/Del/2022, 665/Del/2022 And Ors. - - - Dated:- 18-5-2022 - ITA No(s): 673/Del/2022, 696/Del/2022, 698/Del/2022, 699/Del/2022, 734/Del/2022, 744/Del/2022, 745/Del/2022, 750/Del/2022, 751/Del/2022, 776/Del/2022, 935/Del/2021, 962/Del/2021, 1024/Del/2021, 1085/Del/2021, 1101/Del/2021, 1102/Del/2021, 1105/Del/2021, 1143/Del/2021, 1155/Del/2021, 1156/Del/2021, 1183/Del/2021, 1184/Del/2021, 1187/Del/2021, 1213/Del/2021, 1234/Del/2021, 1235/Del/2021, 1247/Del/2021, 1304/Del/2021, 1434/Del/2021, 1435/Del/2021, 1436/Del/2021, 1437/Del/2021, 1513/Del/2021, 1580/Del/2021, 1601/Del/2021, 1602/Del/2021, 1605/Del/2021, 1706/Del/2021, 1756/Del/2021, 1874/Del/2021, 1876/Del/2021, 1878/Del/2021, 1916/Del/2021, 1876/Del/2021, 1940/Del/2021, 1945/Del/2021,1957/Del/2021. Dayal Industries Pvt. Ltd. Versus Assessing Officer, Circle1(1)(1), Meerut, Shradha Saburi Hospitalities P. Ltd. Versus DCIT, Circle-22(2), New Delhi, Naresh Kumar Chawla Versus ADI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 274/3 Versus ADIT, CPC, Bengaluru, Airif Engineers Pvt. Ltd. Versus DCIT, CPC, Bengaluru, Lumenis India Pvt. Ltd. Versus ADIT, CPC, Delhi, Singla Motors Pvt. Ltd. Versus DCIT, Circle, Karnal, Kishiv Motors Pvt. Ltd. Versus DCIT, Circle, Karnal, Sunridges Sporting Goods Pvt. Ltd. Versus Assessing Officer, Circle-2(1), Meerut, Systematic Communication Versus ITO, Ward-22(4), New Delhi, Chase Detective Security Agency Pvt. Ltd. Versus DCIT, CPC, Bengaluru, Triple Play Interactive Network Pvt. Ltd. Versus CIT(A), NFAC, Sukbir Singh Versus DCIT, CPC, Bengaluru, Quality Buildcom Pvt. Ltd. Versus CIT(Appeals), NFAC, Welgrow Hotels Concepts O.Ltd. Versus ITO,Ward-27(3), New Delhi, Sukbir Singh Versus DCIT, CPC, Bengaluru, Sheryl Strategic Solutions Pvt. Ltd. Versus Ward-5(1)(1),Gautam Budh Nagar, Rakesh Kumar Sharma Versus Ward-5(3)(1), Gautam Budh Nagar, Kaizen Metal Forming Pvt. Ltd. Versus DCIT, Ward-14(1), Delhi Before Shri Kul Bharat, Judicial Member And Shri Pradip Kumar Kedia, Accountant Member For the Petitioner : Shri Rakesh Kumar, CA, Shri Sanjay Sapra, FCA, Shri S.K.Bansal,CA, Shri Sant Kapoor, Adv., Shri Sant Kapoor, Adv., S/Shri Kamal Sawhney, Adv. P. Mehrch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.09.2018 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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. 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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