TMI Blog2022 (9) TMI 1320X X X X Extracts X X X X X X X X Extracts X X X X ..... nature; hence not decided. Interest on TDS, interest on GST and interest on PPF - We restore the issues regarding on account of interest on TDS, interest on GST and interest of PPF; and the issue regarding assessee s claim of credit of TDS to the file of the Ld. CIT(A); with the direction to decide these issues on merits after providing reasonable opportunity to the assessee. - ITA No.303/Del/2022 - - - Dated:- 26-9-2022 - Shri Saktijit Dey, Judicial Member And Shri Anadee Nath Misshra, Accountant Member For the Appellant : Sh. Aman Garg, CA For the Respondent : Ms. Maimum Alam, Senior Departmental Representative ( Sr. DR for short) ORDER PER ANADEE NATH MISSHRA, AM: (A) This appeal by Assessee is filed against the order of Learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), New Delhi [Ld. CIT(A) , for short], dated 15/12/2021 for Assessment Year 2019-20. Grounds taken in this appeal are as under: 1. On the facts and circumstances of the case, the order passed by the National Faceless Appeal Centre [NFAC] is bad both in the eye of law and on facts. 2. On the facts and circumstances of the case, the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in this regard. 11. On the facts and circumstances of the case, NFAC has erred both on facts and in not adjudicating the issue of adjustment of Rs. 53,05,295/- on account of interest on TDS, Interest on GST and Interest on PPF made by the AO(CPC). 12. On the facts and circumstances of the case, NFAC has erred both on facts and in not adjudicating the issue of TDS credit of Rs. 44,32,501/- disallowed by the AO(CPC). 13. That the appellant craves leave to add, amend or alter any of the grounds of appeal. (B) Although the appellant has filed numerous grounds of appeal, essentially there are three issues in dispute. The first issue is regarding addition of Rs.58,72,654/- made u/s 36(1)(va) of Income Tax Act, 1961 ( IT Act , for short). These payments by way of employees contribution to ESI/Provident Fund were deposited by the assessee after the specified date prescribed under the relevant laws governing ESI and Provident Fund. However, payments were deposited by the assessee well before due date of filing of return of income under Section 139(1) of Income Tax Act. The aforesaid addition of Rs.58,72,654/- was made by way of adjustments u/s 143(1) of Income Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility even before 01/04/2021; it may be mentioned that the present appeal before us pertains to Assessment Year 2019-20; which is before 01/04/2021. We are aware of some reported orders of ITAT, passed after the aforesaid amendments were brought in by Finance Act, 2021; in which the issue in dispute for Assessment Years prior to Assessment Year 2021-22 (i.e. for periods before 01/04/2021) has been decided in favour of the assessee and against Revenue. Some such decisions are: Digiqal Solution Services Pvt. Ltd. vs. Assistant Director of Income Tax [2021] 92 ITR (Tribunal) 404 (Chandigarh) for Assessment Year 2019-20 (order dated 4th October, 2021); Shand Pipe Industry Pvt. Ltd. vs. DCIT (CPC), [2022] 93 ITR (Trib.) 54 (Bangalore) for Assessment Year 2018-19 (order dated 27th Dec., 2021); Mahadev Cold Storage vs. Jurisdictional Assessing Officer [2021] 190 ITD 273 for Assessment Year 2018-19 and 2019-20 in ITA Nos. 41 42/Agr/ 2021 (order date 14.06.2021); Nikhil Mohine vs. DCIT [2022] 93 ITR (Trib.) 658 (Jabalpur) for Assessment Year 2018-19 (order dated 18th Nov., 2021 of SMC Bench, Jabalpur); Gopalkrishna Aswini Kumar vs. Assistant Director of Income Tax [2022] 192 ITD 562 (Ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not constitute assessee s income, will continue to hold good for Assessment Year 2019-20, to which this appeal pertains. In such a scenario, the aforesaid additions of Rs.58,72,654/- have no legs to stand; and the same deserves to be deleted. If, however, the contrary view advanced by Revenue is taken, that the aforesaid amendments are retrospective; then the question that will arise is whether such a debatable and controversial view can be invoked for making adjustments u/s 143(1) of Income Tax as per the intimation issued to the assessee u/s 143(1) of Income Tax Act. (D.1.2) It is well settled that any adjustments u/s 143(1) of Income Tax Act by way of intimation u/s 143(1) of Income Tax Act, on debatable and controversial issues, is beyond the scope of Section 143(1) of Income Tax Act. In this regard, we respectfully mention the order of Hon ble Delhi High Court in the case of ACIT vs. Haryana Telecom Pvt. Ltd. 14 taxman.com 122 (Delhi). Similar view was taken by Hon ble Courts in the cases of George Williamson (Assam) Ltd. vs. CIT Anr. [2006] 286 ITR 0533 (Gauhati); Tata Yadogawa Ltd. vs. CIT [2011[] 335 ITR 0053 (Jharkhand); God Granites vs. Central Board of Direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e view was taken by the Hon ble Madhya Pradesh High Court in the case of CIT vs. Satish Traders [2001] 247 ITR 0119 (Madhya Pradesh). (D.2.1) In view of foregoing discussion, we come to the following conclusions: (a) The fact that payments amounting to aforesaid Rs.58,72,654/- by way of employees contribution to provident fund and ESI were made by the assessee after stipulated date prescribed under the relevant laws governing provident fund and ESI, but before the due date of filing of return of income prescribed u/s 139(1) of Income Tax Act; is not in dispute. (b) Whether the aforesaid amendments to Income Tax Act by way of Finance Act, 2021 are retrospective or prospective, is debatable and controversial. (c) Adjustments made by Revenue u/s 143(1) of Income Tax Act, whereby aforesaid additions of Rs.58,72,654/- were made, were unfair, unjust and bad in law. (d) Addition by way of adjustment and intimation u/s 143(1) of Income Tax Act on debatable and controversial issues is beyond the scope of Section 143(1) of Income Tax Act. Revenue was clearly in error in making the aforesaid adjustments. (e) Addition by way of adjustment and intimation u/s 143(1) of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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