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TMI Blog2022 (10) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the following grounds of appeal. ITA No. 533/PUN/2021 for A.Y. 2018-19 - Mohite Electronics Pvt. Ltd. "The ld. CIT(A) erred on facts and in law in upholding the disallowance u/s 36(1)(va) of the Act on account of alleged delay in payment of employees' contribution of provident fund ('PF') and ESI under the respective laws without appreciating the fact that, the payments are already made before the due date for filing of income-tax return u/s 139(1) of the Act. He failed to appreciate that the matter is covered in favour of the assessee by the decision of Hon'ble jurisdictional Income-tax Appellate Tribunal as well as Hon'ble Bombay High Court. He further failed to appreciate that the amendment in section 36(1)(va) as well a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that confirmed by the ld. CIT(A) be deleted and the appellant be granted just and proper relief in this respect. 3. The appellant prays to be allowed to add, amend, modify, rectify, delete, raise any grounds of appeal at the time of hearing." 2. The facts and circumstances and the issues involved in both these appeals are absolutely identical and similar. Therefore, these cases were heard together and are disposed of by this consolidated order. 3. The only issue involved in both these appeals is the disallowance of employees' contribution to Provident Fund as well as ESIC. It is the case of the assessees that as per various decisions of Pune Tribunal it has been held that if the employees' contribution to provident fund is paid before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on behalf of the appellants listed at Sl. No.2 to 6 of above cause title, despite due service of notice of hearing, except in the case of Tilokchand Bhabutmal Shah (listed at Sl. No.1 of the above cause title). Therefore, we proceed to dispose of all the appeals on merits after hearing the ld. CIT-DR. 7. We heard the ld. CIT-DR and perused the material on record. The only issue raised through various grounds of appeal in this appeal is against the confirmation of disallowance of Rs.1,46,592/- made by the Assessing Officer u/s 36(1)(va) of the Act on account of late deposit of the Employees' share of EPF and ESI etc. 8. At the outset, ld. AR appearing on behalf of the appellant Tilokchand Bhabutmal Shah listed at Sl. No.1 of above cau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same after the due date under the respective legislations but before the time stipulated for filing return u/s 139(1) of the Act for the year under consideration. In our opinion, this issue is no more res integra in view of several judgments allowing deduction u/s 36(1)(va) of employees' share of contribution deposited after due date under the respective Acts but before the date prescribed u/s 139 of the Act. The Hon'ble Himachal Pradesh High Court in CIT vs. Nipso Polyfabriks Ltd. (2013) 350 ITR 327 (HP) has held that there exists no difference between employees or employer's contribution and both are to be allowed as deduction if deposited before the due date. 6. At this juncture, it is relevant to mention that the Finance Act, 2021 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and decided the issue in favour of the assessee. 11. Respectfully following the above judicial precedents, we hold that the ratio laid down by the Hon'ble High Courts cited above is squarely applicable to the facts of the present case. Therefore, following the principle of consistency, we direct the Assessing Officer to delete the addition of Rs.1,46,592/- made u/s 36(1)(va) of the Act. 12. In the result, the appeal filed by the assessee in ITA No.538/PUN/2021 for A.Y. 2019-20 stands allowed." 5. In the aforestated decision, the Tribunal has relied on Hon'ble Jurisdictional High Court decision in the case of CIT Vs. Ghatge Patil Transports Ltd. 368 ITR 749 (Bom) which followed the decision of Hon'ble Himachal Pradesh High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in ITA No. 541/PUN/2021 the assessment year is 2018-19. Since the assessment years under consideration are earlier to the amendment carried out with effect from A.Y. 2021-22, we hold that the position of law as set out by various Hon'ble High Courts' decisions including Hon'ble Jurisdictional Bombay High Court in the case of Ghatge Patil Transports Ltd (supra) and Hon'ble Himachal Pradesh High Court in Nipso Polyfabrics Ltd (supra) squarely applies to the facts and circumstances of the instant cases thereby not warranting any disallowance since the amounts in question were admittedly deposited before the due date u/s 139(1) of the Act and also pertains to prior assessment years prior to A.Y. 2021-22. We direct the A.O to dele ..... X X X X Extracts X X X X X X X X Extracts X X X X
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