TMI Blog2022 (1) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents on record amounting to double taxation and the facts of the case. The addition merits deletion. 5. That the action of the Learned Commissioner of Income tax (Appeals) in confirming the addition of ₹ 11142177- on account of provision for gratuity amounting to double taxation is arbitrary, unwarranted and uncalled for. The addition merits deletion. 6. That the appellant reserves the right to add, alter or amend grounds of appeal. 2. Briefly, the facts of the case are that the assessee filed its return of income on 26.09.2019 declaring total income of ₹ 78,28,879/-, which was processed u/s 143(1) of the Act and in terms of intimation u/s 143(1) dated 27.02.2020 issued by CPC, had made disallowance of ₹ 3,68,124/- towards late deposit of employees contribution to ESI PF and an amount of ₹ 11,14,217/- on account of provision for gratuity. 3. On appeal, the Ld.CIT(A), NFAC has confirmed both the disallowances and against the said order, the assessee has now come up in appeal before us. 4. During the course of hearing, the Ld. AR submitted that the assessee has deposited employees contribution towards ESI and PF though with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Hyderabad Bench in the case of Crescent Roadways Pvt. Ltd. Vs DCIT in ITA No. 1952/Hyd/2018 but also consistent orders of the Chandigarh Bench. It is seen that all along the Co-ordinate Benches have held that the amendments to Sections 36(1)(va) and u/s 43B of the Income Tax Act effected by the Finance Act, 2021 is applicable prospectively and not retrospectively. While coming to the said conclusion, the Benches have relied upon and read from the Notes on Clauses at the time of introduction of the Finance Act, 2021 and have held that the amendment 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 cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 and circumstances of the case and following the decisions of various High Courts as well as Coordinate Benches of the Tribunal referred above, the addition made by way of adjustment while processing the return of income u/s 143(1) of the Act, amounting to ₹ 3,68,124/- 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. Hence, ground no. 1 of assessee s appeal is allowed. 7. Regarding ground N ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
