TMI Blog2022 (8) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... s Vishal Enterprises [ 2022 (2) TMI 1272 - ITAT BANGALORE] A.O. and first appellant authority are duty bound to follow the decisions of jurisdictional high Court otherwise it makes their decision unsustainable in so far as applicability of amendment by the finance act 2021, the same is effective from assessment year 2022-23 thus in the light of above, we hold that the C.P.C and Ld. CIT (A) has erred in applying amended provisions of sec 36(1)(va) r.w.s 43B to disallow assesses claim of deduction. - Decided in favour of assessee. - ITA No. 1722/Mum/2021 - - - Dated:- 3-8-2022 - Shri ABY T Varkey, Judicial Member And Shri Gagan Goyal, Accountant Member For the Appellant : Sh. Akram Khan with Sh. Raunak Vardhan For the Respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance under Section 36(1)(va), on a debatable issue, vide intimation under section 143(1)(a). 5 Both the lower authorities failed to consider that the payment of employees' contribution to ESIC and labour welfare fund was made before the due date of filing the Return of Income. 6 Both the lower authorities erred in ignoring the binding decisions of the jurisdictional Bombay High Court. 7 Having regards to the facts and circumstances of the case, the disallowance of Rs 38,18,955/- needs to be deleted. 2. Brief facts of the case are that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of payment as per columns 20(b) of form no 3CD. This reporting auditor had done keeping in view the due dates of respective acts and not as per Income Tax Act 1961. This tax audit report nowhere suggests and authorizes the department to make a disallowance, if the payments are made within the due date for filing of return u/s 139(1) of the Income Tax Act 6. We have pursued the details filed by the appellant with reference to amount and actual date of payments under the respective due dates for various employee welfare related acts. 7. On perusal of the order of Ld. CIT (A), he himself admitted that issue is a debatable one. It s an established position of law, no debatable issue can be considered while doing adjustment u/s 143(1)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgements of ITAT be considered while deciding the matter i) PNGS India Pvt Ltd vs I.T.O (ITA no 1409/Mum. /2021) ii) M/s Vishal Enterprises Vs DCIT (ITA no 510 and 511 /Bang. /2021) 13. Considering all the discussions, decisions and submission of the appellant we are of the considered view that A.O. and first appellant authority are duty bound to follow the decisions of jurisdictional high Court otherwise it makes their decision unsustainable in so far as applicability of amendment by the finance act 2021, the same is effective from assessment year 2022-23 thus in the light of above, we hold that the C.P.C and Ld. CIT (A) has erred in applying amended provisions of sec 36(1)(va) r.w.s 43B to disallow assesses claim of deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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