TMI Blog2021 (8) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... Del/2020 - - - Dated:- 30-7-2021 - SHRI KUL BHARAT , JUDICIAL MEMBER Appellant by : Sh.Somil Aggarwal , CA Respondent by : Sh.Gaurav Pundir , Sr. DR ORDER PER KUL BHARAT , JM : This appeal filed by the assessee for the assessment year 2018-19 is directed against the order of Ld. CIT(A)-9, New Delhi dated 20.08.2020. The assessee has raised following grounds of appeal:- 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. DCIT/CPC in making aggregate addition of ₹ 1,33,816/- on account of employee's contribution to ESI and EPF and that too by recording incorrect facts and findings and without observing the principl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I and EPF. 5. Aggrieved against this, the assessee preferred appeal before this Tribunal. 6. Ld. Counsel for the assessee submitted that the authorities below were not justified in disallowing the claim and making the addition. He submitted that Ld.CIT(A) had relied upon the decision of Hon ble Delhi High Court rendered in the case of CIT vs Bharat Hotels Ltd. [2019] 103 taxmann.com 295/ 410 ITR 417 (Delhi). He submitted that the Co-ordinate Bench of this Tribunal in the case of Azamgarh Steel Power Pvt.Ltd. vs CPC, Banglore in ITA no.1626/Del/2020 order dated 31.05.2021 following the decision of Tribunal in the case of DCIT vs Dee Development Engineers Ltd. in ITA No.4959/Del/2016 order dated 08.04.2021 decided the issue in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gislative 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. 9. I find that the Division Benches of this Tribunal in ITA No.4959/Del/2016 in the case of DCIT vs Dee Development Engineers Ltd. (supra) and in the case of Azamgarh Steel Power Pvt.Ltd. vs CPC (supra) has followed the judgement of the Hon ble Delhi High Court in the case of Pr.CIT vs Pro Interactive Service (India) Pvt.Ltd. (supra). The Co-ordinate Bench of this Tribunal in the case of Azamgarh Steel Power Pvt.Ltd. vs CPC (supra) held as under:- 6. We have heard the rival submissions and perused the materials avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10.09.2018 wherein the Hon'ble High Court decided the issue in favour of the assessee relying upon the judgment of AIMIL Ltd. (supra). The Hon'ble Delhi High Court held that the legislative intent was/is to ensure that the amount paid is allowed as 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. It is settled law that when two judgments are available giving different views then the judgment which is in favour of the assessee shall apply as held in case of Vegetable Products Ltd. 82 ITR 192 by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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