M/s Partap Engineers, Ludhiana V. DCIT-Circle-4, Ludhiana

CO 2/CHANDI/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4391 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 20-04-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2019-2020
• Appeal Filed On: 22-12-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJESH SHARMA; JASVINDER SINGH; RISHABH MARWAHA
• Keywords: Retrospective amendment; Additional evidence
• Section: 43B; 143(1); 43; 13; 22

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ I N T H E I N C O M E T A X A P P E L L A T E T R I B U N A L D I V I S I O N B E N C H , “ B ” , C H A N D I G A R H B E F OR E SH R I N . K . SA I N I , V I C E P R E SI D E N T & S H R I S U D H A N S HU SR I V A S T A V A , J U D I C I A L M E M B E R आयकर अपील सं./ ITA No. 18/C H D / 2 0 2 2 नधा रण वष / Assessment Year : 2 0 1 9 - 2 0 DCIT, Central Circle, Patiala बनाम Smt. Madhubala W/o Sh. Krishan Gopal, Ward No.1, Lehargaga, Punjab थायी लेखा सं./PAN NO: ANJPB7890D अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Sh. Vibhore Garg, CA राज व क ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR आयकर अपील सं./ ITA No. 09/C H D / 2 0 2 2 नधा रण वष / Assessment Year : 2 0 1 8 - 1 9 Sh. Pushpinder Singh Sarna, H.No.154, Sector 4, Panchkula बनाम The ITO, Ward-3, Panchkula थायी लेखा सं./PAN NO: ADLPS4369Q अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Sh. Ajay Jain, CA राज व क ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR आयकर अपील सं./ ITA No. 12/C H D / 2 0 2 2 नधा रण वष / Assessment Year : 2 0 1 8 - 1 9 Sh. Parminder Singh, Prop. M/s Lion Industries, B-XXIX-97, Street No.1 Daba Road, Baba Mukund Singh Nagar, Ludhiana बनाम The ITO, Ward 5(3), Rishi Nagar, Ludhiana - थायी लेखा सं./PAN NO: ADNPS0589C अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Sh. Jasvinder Singh, Advocate राज व क ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 2 आयकर अपील सं./ ITA No. 31/C H D / 2 0 2 2 नधा रण वष / Assessment Year : 2 0 1 8 - 1 9 Sh. Sandeep Gupta, 3138, Sector 23-D, Chandigarh बनाम The DCIT, Circle 3(1), Chandigarh थायी लेखा सं./PAN NO: AAQPG1644L अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Sh. Rajesh Sharma, CA राज व क ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR आयकर अपील सं./ ITA No. 32/C H D / 2 0 2 2 नधा रण वष / Assessment Year : 2 0 1 8 - 1 9 Metalman Auto Private Limited, JMK Tower NH 8, First Floor, Village Kapashera , New Delhi 110037 बनाम The ACIT, Circle-1, Ludhiana थायी लेखा सं./PAN NO: AABCM5441M अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Shri Amarjit Kamboz, CA राज व क ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR आयकर अपील सं./ ITA No. 394/C H D / 2 0 2 1 नधा रण वष / Assessment Year : 2 0 1 9 - 2 0 Ride Link Auto, Ayali Khurd, Ludhiana बनाम The ITO, Ward 7(1), Ludhiana थायी लेखा सं./PAN NO: BRYPB7478M अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Ms Monvica Kaushal, CA राज व क ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR आयकर अपील सं./ ITA No. 418/C H D / 2 0 2 1 नधा रण वष / Assessment Year : 2 0 1 8 - 1 9 The ITO, Ward-6(1), Ludhiana बनाम Sh. Sita Ram Singla, 3367, Ferozepur Road, Gurdev Nagar, Ludhiana थायी लेखा सं./PAN NO: AJSPS8914J अपीलाथ /Appellant यथ /Respondent ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 3 नधा रती क ओर से/Assessee by : None राज व क ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR C.O. 1/ CHD/2022 (Arising from आयकर अपील सं./ ITA No. 418/C H D / 2 0 2 1 नधा रण वष / Assessment Year : 2 0 1 8 - 1 9 Sh. Sita Ram Singla, 3367, Ferozepur Road, Gurdev Nagar, Ludhiana बनाम The ITO, Ward-6(1), Ludhiana थायी लेखा सं./PAN NO: AJSPS8914J अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : None राज व क ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR आयकर अपील सं./ ITA Nos. 14 & 15/C H D / 2 0 2 2 नधा रण वष / Assessment Years: 2 0 1 8 - 1 9 & 2 0 1 9 - 2 0 Vijay Kumar Singh, H.No. 47, Phase-3, Near Shiv Mandir, Housing Board Colony, Baddi-173205 बनाम The DCIT, CPC, Banglore थायी लेखा सं./PAN NO: ATZPS6604A अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Sh. Ravinder Kumar Sharma, CA राज व क ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR आयकर अपील सं./ ITA No. 78/C H D / 2 0 2 2 नधा रण वष / Assessment Year: 2 0 1 8 - 1 9 Tegsons India, Sherpur Bye Pass, Near Yuvraj Motors, Distt. Ludhiana बनाम The DCIT, CPC, Banglore (For ITO, Ward 1(3), Ludhiana ) थायी लेखा सं./PAN NO: AAAFT7638K अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Sh. Rishabh Marwaha, CA राज व क ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 4 आयकर अपील सं./ ITA No. 16/C H D / 2 0 2 2 नधा रण वष / Assessment Year: 2 0 1 9 - 2 0 Sh. Vidyadhar Tiwari, Ward No.1,Near Govt. High School, Village Baddi, Solan 173205 बनाम The DCIT, CPC, Banglore थायी लेखा सं./PAN NO: AGXPT3125G अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Sh. Ravinder Kumar Sharma, CA राज व क ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR स ु नवाई क तार$ख /Date of Hearing : 05.04.2022 and 06.04.2022 उदघोषणा क तार$ख/Date of Pronouncement : 21. 04.2022 आदेश/Order P er Ben c h : T he c a pt i o n e d a pp ea l s a nd Cr os s O bj ec t io n h av e b e en pre fe rre d by t h e a s se s s e e / Re v en u e a g a i ns t t he s e pa r a t e o rd e rs o f t h e L d . F ir s t A ppe l la t e A ut ho r it y a s per th e de t ai l s g iv e n b e l ow: - S . N o. I TA N o . A p p ea l b y Fi r s t A p p e l la te A u t h or it y 1 18/ C hd / 2 02 2 Re ve n ue 11. 1 1. 2 02 1 2 9/ Ch d/ 20 21 Re ve n ue 24. 1 1. 2 02 1 3 12/ C hd / 2 0 2 2 A s s es s e e 22. 1 1. 2 02 1 4. 31/ C hd / 2 0 2 2 A s s es s e e 02. 1 2. 2 02 1 5 32/ C hd / 2 0 2 2 A s s es s e e 08. 1 2. 2 02 1 6 39 4 / Ch d/ 2 0 21 A s s es s e e 25. 1 0. 2 02 1 7 41 8 / Ch d/ 2 0 21 Re ve n ue 25. 1 0. 2 02 1 8 C. O . 1 /C h d/ 20 2 2 A s s es s e e 25. 1 0. 2 02 1 ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 5 9. 14/ C hd / 2 0 2 2 A s s es s e e 03. 1 2. 2 02 1 10 . 15/ C hd / 2 0 2 2 A s s es s e e 03. 1 2. 2 02 1 11 . 78/ C hd / 2 0 2 2 A s s es s e e 22. 1 2. 2 02 1 12 . 16/ C hd / 2 0 2 2 A s s es s e e 23. 1 2. 2 02 1 1. 1 S i nc e t h es e a p p ea l s i n vo lv e d a n i d e nt i c a l qu es ti on, t h ey w er e he a rd i n a bu nc h o n t w o s e pa r a t e da t e s a nd t he y ar e b e i n g di s pos e d o ff by t h i s c o mm o n or d er fo r t he s a k e o f c o n ve n i e nc e . 1. 2 F or th e sa ke o f c on ve n i e nc e , t he g r ou nd s ta ke n b y t h e va r i o us pa r t i es i n th ei r re s p e ct i v e a p pe a ls / cr o s s o bj ec t io n a r e be i n g re p r od uc e d he r e i n un de r : - 2. 0 ITA No. 18/Chd/2022: 1 That the Ld.CIT(A) erred in law, in deleting addition/disallowance of Rs.1,01,770/-made by the Assessing Officer in respect of delayed payment of employee's contribution, beyond the prescribed time, to the welfare Funds like PF. 1(a) That the Ld CIT(A) erred on facts and law ignoring the distinction between provision of section 36(l)(v) r.w.s 43B and provisions of section 36(l)(va) r.w.s 2(24)(x) of the Income Tax Act, 1961, which clearly provide for different treatment While the delayed payment of employers contribution is allowable if found before the filing of return wherever employee's contribution is disallowed for once and all if payment is delayed beyond the prescribed time. 1(b) That the Ld.CIT(A) erred in ignoring and failing to take into account the amendment carried out by Finance Act, 2021 by way of inserting Explanation 1 & Explanation 2 below section 36(l)(va) of the Act which has been interpreted by the Hon'ble Appellate Tribunal, Delhi Bench in M/s Vedvan Consultants ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 6 Pvt Ltd., New Delhi ITA No.l312/Del/2020 dated 26.08.2021 which was held that the aforesaid explanation was clarificatory. 2. That the Ld. ClT(A) erred in ignoring the Circular No.22/2015 issued by the CBDT. 2.1 ITA No. 9/Chd/2022 1. That the Ld. Commissioner of Income Tax- (Appeals) has wrongly upheld the disallowance of Rs 1353040 on account of delay in deposit of employee share of ESI and EPF without considering the fact that the assessee had deposited before due date of filing of itr and he also ignored the jurisdictional Punjab and Haryana High court decision in favour of appellant. 2. That the Ld. Commissioner of Income Tax- (Appeals) has wrongly upheld the disallowance of Rs 1353040 made by CPC under section 143(1) on debatable issue. 3. That the assessee craves for permission to add, amend, alter or withdraw any grounds of appeal with the approval of the Hon'ble Bench. 2.2 ITA No. 12/Chd/2022 1. That the order of the learned C.I.T. (Appeals), National Faceless Appeal Centre is illegal, wrong, arbitrary and against law and the facts of the case. 2. That the learned CIT (Appeals) is not justified in concurring with the Ld. A.O and thereby confirming the addition of Rs. 2,24,740/- by disallowing expenditure related to Bonus which is covered u/s 43 B and such action/order of the CIT(A) is perverse and needs interference by this Hon'ble Tribunal for which the appellant respectfully prayeth vide this present appeal. 3. That the learned CIT (Appeals) is not justified in concurring with the Ld. A.O and thereby confirming the addition of Rs. ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 7 13,069/- u/s 36(l)(va) when such amount has been paid before the due date and the amendment regarding insertion of explanation 2 in section 36(l)(va) and explanation 5 in section 43B in the Finance Bill 2021 is with prospective effect. 4. That the Appellant craves for leave to add, modify amend or delete any of the grounds of appeals at the time of hearing and all the above grounds are without prejudice to each other . 2.3 ITA No. 31/Chd/2022 1. That the impugned Order is bad in law, since it has been passed as it has been passed without giving any opportunity to the appellant to present his case. 2. It is settled law before the amendments were made by the Finance Act 2021, that no disallowance can be made under section 36 (1) (va) of the Act, when the assesse has deposited the amount of ESI before due date of filling the return of Income. 3. That the Ld. CIT Appeals has wrongly interpreted the provisions of Finance Act 2021 with regard to clause (va) of sub section (1) of the section 36 of the Act, since the amendments are not applicable from retrospective effect. 4. That the appellant craves leave to amend, alter or delete any of the above grounds of appeal. Any other relief as Your Honour may deem fit and desirable may kindly be allowed. 2.4 ITA No. 32/Chd/2022 1. The Ld. Commissioner of Income Tax (Appeals), NFAC has erred in law and on facts of the case by arbitrarily and wrong! / confirming the adjustment, by way of disallowance of revenue business expenses, made by CPC of employee contribution to ESI/Provident Fund for Rs 6,55,889/-, paid after the due date prescribed under the respective A c t but before the due date of filing of return of income u/s 139(1). ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 8 2. The Ld. Commissioner of Income Tax (Appeals), NFAC has erred in law and on facts of the case by not following the judgments of the Hon'ble Supreme Court of India and Hon'ble Jurisdictional Punjab and Haryana High Court on similar facts as it constitutes mistake apparent on record arising as a result of interpretation of law. 3. The assessee craves permission to file/raise/amend any other ground of appeal before or at the time of hearing. 2.5 ITA No. 394/Chd/2021: 1. That the appellant denies its liability to be assessed at total income of Rs. 1922100/- as against returned income of Rs. 1141500/- and accordingly denies its liability to pay tax, cess and interest demand thereon. 2. That having regard to the facts and circumstances of the case, the Ld. CIT(A) has erred in law and on the facts in confirming the action of the Ld. Assessing officer in making adjustments u/s 143(1) of the Income Tax Act, 1961 by disallowing the contribution received form employees towards ESI and EPF amounting to Rs. 780599/-. 3. That the action of the Assessing officer as well as of CIT(A) is under challenge since not having appreciated the facts, documents, paper book, evidence, decision relied & provision of act in its true sense & spirits. 2.6 ITA No. 418/Chd/2021: 1. That the Ld. CIT(A) erred in law, in deleting addition/disallowance of Rs. 46,992/- made by the Assessing Officer in respect of delayed payment of employee's contribution, beyond the prescribed time, to the Welfare Funds like EPF. 1(a) That the Ld. CIT(A) erred on facts and law ignoring the distinction between provision of section 36(1 )(v) r.w.s 43B and provisions of section 36(l)(va) r.w.s 2(24)(x) of the ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 9 Income Tax Act, 1961, which clearly provide for different treatment. While the delayed payment of employers contribution is allowable if found before the filing of return whereas employee's contribution is disallowed for once and all if payment is delayed beyond the prescribed time. 1(b) That the Ld. CIT(A) erred in ignoring and failing to take into account the amendment carried out by Finance Act, 2021 by way of inserting Explanation 1 & Explanation 2 below section 36(1 )(va) of the Act which has been interpreted by the Hon'ble Appellate Tribunal, Delhi Bench in M/s Vedvan Consultants Pvt Ltd., New Delhi ITA No.l312/Del/2020 dated 26.08.2021 which was held that the aforesaid explanation was clarificatory. 2. That the Ld. CIT(A) erred in ignoring the Circular No. 22/2015 issued by the CBDT. 2.7 C.O. No. 1/ Chd/ 2022 (aris ing in I TA 418/ Chd/ 2021) 1. That the Ld. ITO, Ludhiana has erred in law and on the fact of the case while making disallowance of Rs. 46922/- against the payment of PF and added back to the taxable income. 2. That the respondent craves leave and sanction to file additional evidence, if so, required for proper prosecution of the case, based on facts and circumstances, which has not been or could not be adduced or filed before the lower authorities either because proper and sufficient opportunity/ time was not provided or because it was not solicited or its need was not provided or because its need was appreciated. 2.8 ITA No. 14/Chd/2022: 1 The Ld. CIT(A) has wrongly confirmed the addition of Rs. 173490 under section 36, when in fact the actual EPF payments were made before the due date of filing the ITR as per challans submitted before CIT(A) and several judicial pronouncements are in favour of the assessee. ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 10 2 Any other ground of grounds as may be urged at the time of hearing. “The appellant craves leave to add, amend, alter vary and / or withdraw any or all the above grounds of appeal.” 2.9 ITA No. 15/Chd/2022: 1 The Ld. CIT(A) has wrongly confirmed the addition of Rs. 5011008/- under section 36, when in fact the actual ESI and EPF payments were made before the due date of filing the ITR as per challans submitted before CIT(A) and several judicial pronouncements are in favour of the assessee. 2 Any other ground of grounds as may be urged at the time of hearing. “The appellant craves leave to add, amend, alter vary and / or withdraw any or all the above grounds of appeal.” 2.10 ITA No. 78/Chd/2022: 1. The Ld. CIT(A), National Faceless Appeal Centre, Delhi erred on facts and law in confirming the action of the AO of disallowing the amount of Rs 4,78,732/- u/s 36(i)(va) on account of payment of employees contribution beyond the due date as prescribed under the relevant Act as the issue is covered by the judgments of the Hon'ble P&H High Court. 2. The Ld. CITA), National Faceless Appeal Centre, Delhi erred on facts and law in confirming the action of the AO of disallowing the amount of Rs. 4,78,732/- u/s 36(i)(va) on account of payment of employees contribution beyond the due date as prescribed under the relevant act because the amendment by Finance Bill 2021 is prospective and not retrospective as held by the Chandigarh/ Ahmadabad ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 11 bench of the ITAT and CIT(A), National Faceless Appeal Centre, Delhi in various cases. 3. The Ld. CIT(A), National Faceless Appeal Centre, Delhi erred on facts and law in confirming the action of the AO of disallowing the amount of Rs. 4,78,732/- u/s 36(i)(va) on account of payment of employees contribution beyond the due dates as prescribed under the relevant Act because the CIT(A), National Faceless Appeal Centre, Delhi has acted against the principals of judicial consistency as held by the Hon'ble Supreme Court in various cases. 4. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off. 2.11 ITA No. 16/Chd/2022: 1 The Ld. CIT(A) has wrongly confirmed the addition of Rs. 452475/- under section 36, when in fact the actual ESI and EPF payments were made before the due date of filing the ITR as per challans submitted before CIT(A) and several judicial pronouncements are in favour of the assessee. 2 Any other ground of grounds as may be urged at the time of hearing. “The appellant craves leave to add, amend, alter vary and / or withdraw any or all the above grounds of appeal.” 3. 0 A t t he r e q ue s t o f th e Ld. S r . D R, t he c a s e b e a ri ng I TA N o. 18/ Ch d/ 2 0 22 i n t h e ca s e o f D CI T , Ce n t r a l Ci r c l e , P at i a l a V s . S mt. M ad h ub a l a fo r a s se s s me nt y e a r 2 0 19- 20 w as t a k en as t he l e a d c a s e. T he Ld . A u th ori s e d Re pr es e nt at i v e s (A Rs ) re p re s e n t in g t he as s e s s ee s ha d n o o b j e c t i o n t o t he s a me . ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 12 4. 0 T he Ld. S r . D e pa r t me nt a l R e p r es e nt a t i ve (S r. D R) s ub m i t t e d t h a t t he s o l e is s ue in t he s e bu nc h o f ap pe al s i s w het he r e mp l o y e e s ’ c on t r i b ut i o n t o P rov i de nt F u nd d epo s i t e d i n th e a cc o un t o f t he go ver n me n t a ft e r t he du e da t e bu t b e f ore f il i ng t h e re tu r n o f in c o m e i s a n a l l ow a bl e d e d u c t i o n. T he L d. S r. D R s ub mi tt e d tha t, i nv a r i a b l y, i n a ll t h e a p p e al s , d ur i n g t h e c ou rs e o f a s s es s m en t p ro c e e di ng s , t h e A s s es s i ng O ff ic e r (A O ) ha d n o t i c e d t ha t t he p a y me nt ma de by t h e a s s es s e e/ s t ow ar ds e mp l o ye es ' c on t ri b ut i on to P ro vi de n t F und (P F ) a nd E S I w a s de pos i t e d a f t e r t he du e d at e pr e s c ri be d i n t he r es p ec t i ve S t at u t e s a nd h e nc e pr oce e d e d t o m ak e a d d i ti on u n d er s e c t i o n 3 6( l ) (v ) re a d w i t h s ec t i o n 2 (2 4 ) (x ) o f t h e In c o m e T ax A c t, 19 6 1 ( he r e i n a ft e r c al l e d ‘ th e A c t) . 4. 1 T he L d. S r. D R d re w o ur a tt e n t i o n to S e c t i o n 3 6( 1 ) (v a ) o f t h e A ct w hi ch r ea ds a s u nde r: "S ec t i o n 3 6( 1 ) : T he d e du c t i ons pr ov i ded f or i n t he fo l l o wi ng c l a u se s s ha l l b e a l l o we d i n r e s pe ct o f t he m a tt e r s de al t w i t h t he r e in , in co m p ut i n g t he i n c o m e r ef e rr e d t o i n s ec t i o n 28— (v a) a n y s um r ec e i v e d by t h e as s e s se e f r om a ny o f hi s em p l o y e es t o w hi c h th e pr ov is i on s of s ub - cl au se (x ) o f c l aus e ( 24 ) of s e c t i o n 2 a p p l y, i f s uc h s um i s cr e di te d by t h e as s e s s ee t o t h e e m p lo y e e' s a c c o un t i n th e r e l e v a nt f u n d o r f unds o n or be fo r e t he d ue d a te. Ex p l a na t i on. — F or th e p ur p os es of t hi s c l aus e , " due dat e" m e ans t he d at e by w hi c h t h e a s s es s e e i s r equ ir e d as an e m pl oy e r t o c re di t a n e m p l oy ee 's ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 13 co n tr i b u t i o n t o t h e e m p l o y e e ' s ac c ou nt i n t he r el e v an t f u n d u n de r an y A c t, r ul e, o r de r or not i f i c a t i o n i s s ue d th er e un d er or un de r any s t an di ng or de r , a war d, c on t r ac t o f s e r vi c e or ot he r wi s e ; " 4. 2 It w a s s ub mi t t ed t h at c la us e ( 24 ) o f s ec t i on 2 o f t h e I n c o me T ax A ct , 19 61 p ro vi de s a n i nc lu s i v e d e fi n i t i o n o f i n co me . It w as s u b mi t t e d t ha t s ub - c l a u s e (x ) t o t he s a i d c l au se p rov id es th at i nc o m e i n c l ud e s a n y s u m r e c e i ve d b y th e as s e s s ee fro m h is e mp l o ye e s a s c ont ri b u t i o n t o a n y pr o vi de nt fu n d o r s up er an n u a t i o n fun d o r an y f un d set up u nd er t h e pr o vi s i o ns o f E S I A c t or an y o t h e r fu nd fo r t he w elfa r e o f s u c h e mpl o y e e s . 4. 3 T he L d. S r. D R ar gue d t ha t o n a p l a i n r ea di ng of t h e s e ct i o n, i t w oul d b e c l ea r t h a t th e as s e s s ee w o ul d be e n t it l e d fo r de d uc t i o n q u a th e s u m r ec ei ve d fro m a ny e mp l o y e e t o w h ic h pr o v is i o n s o f s ub -s ec t i o n ( x ) o f c l a us e ( 24 ) o f s ec t io n 2 i s a p pl ie d, o nl y, i f s uc h s u m i s cr e d i t e d b y a s s es s e e t o th e e m p lo ye e s ’ a c co unt i n t he r e l e v a n t fu n d or fu n ds on or be fo r e t he d u e d at e . It w as s ub mi tt e d t ha t t h e d ue da t e i s fur th er d e f in ed i n t h e E xp l a na ti on , w hi c h me an s th e da t e by w h i c h th e a s s e s s ee is re q u i r e d a s an e mp lo y er t o c re di t e mp lo y e e 's c on t r ibu t i on t o t he e mpl o y e e s ’ a c c ou nt in t he r e l e va n t fu n d u nde r a ny Ac t o r Ru l e or O rd e r or N o ti fi c at i o n i s s ue d t h e r e u nd e r or a n y s t a ndi ng or d e r o r a w a rd or s e rvi c e o r o t h e r w i s e . S he a r gu e d th a t , t he re f o re , i n c a s e , w her e t h e e mpl o y e r fa il s t o de p os i t t h e e n t i re a m ou n t t ow a r ds e mp lo ye e ' s c on t r i b ut i o n o n a c c ou nt o f P F a nd E S I w it h t h e c o n ce rn ed d ep a r t me n t o n or b e fo r e t he d ue d a t e un d e r P F and ES I A c ts , th e a ss e s s e e s ha l l n ot b e ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 14 e nt it l e d fo r de du c t io n to t ha t e xt e n t . S he und er l i ne d th at ac c o rd i n g t o t he E m p l o ye es P r ovi d e n t F und s S che m e o f 19 5 2, a ll pa y m en ts o w e d t o e mpl o y e e s r e g ar d i n g w a g es f or a g iv e n m o nt h m us t b e p a i d w it hi n 1 5 da ys o f t he mo n t h 's e nd. 4. 4 T he L d. D R fu rt he r ar g ue d t ha t p ro vi s i on s o f S ec t io n 3 6( 1 ) (v a ) o f t he A c t a re ve ry c l e a r a n d un a mb i g u ous . T he re i s no s c op e fo r l i b e r a l i nt er pr e t a t i on o r f or t h at m a tt e r i n t e rpr e t at i on at a l l w he n t he l a w is s t at e d i n c l e a r a n d u na mb i g u o us t e r ms w h a t e v er t he co n s eq uen ti a l e ffe c ts be . T he L d . S r. D R s ubm it t ed t ha t m a n y as s es s e es re l y on t he j ud g m e n t o f H o n 'b l e S up r e m e Co ur t o f Ind i a i n t h e cas e o f CI T v . A l o m E xt rus i ons Lt d. [2 00 91 1 85 Ta x m a n 41 6 /3 19 IT R 30 6. S he su b mi t t e d t ha t t hi s j u d g e m en t i s n ot a p p l i c a bl e t o t h e f ac t s b ec a u s e t he H on ' bl e S upr e m e C o u rt ha s d ec i de d t h e i s s ue i n A l o m E xt rus ion s L t d. ca s e [ s upr a ) qu a e m pl oy e rs ' c on tr ib ut io n as pe r s e c t i on 43 B( b) of t he A c t a nd no t q u a e mp l o y e e 's c on t r i b ut i o n u/ s 36( 1) ( v a) o f the A c t . 4. 5 It w a s fu rt he r a r g ue d t ha t m an y a s s es s e es al s o re l y o n t h e j ud g e m e nt o f t h e H o n' bl e S u p re me Co ur t o f In d i a i n c a s e o f C IT v s. V i nay S t e e l s L td . [ 20 0 7] 21 3 C T R 26 8 (S C) b u t th e s a i d ju dg e me n t is a ls o n ot a p pl i ca bl e as h e r e t he H on' bl e S upr e m e Co u r t ha s n o t di s c us s ed s ec t i o n 3 6 (1 ) (v a ) r ea d w i t h s e ct i o n 2 ( 24) (x ) a t al l w hi c h is t he su bj ec t ma t t e r o f a p p ea l i n t he i n s ta nt ap pe al s. S h e s ub mi t t e d t h a t S e ct i on 43 B pe r t a i ns o nl y t o E m p l o ye r ’ s c o nt ri b ut i on an d no t e mpl o y e e 's c on t r i b ut i o n w hi c h i s cl e a rl y me n t i on e d i n t h e A ct . S h e al s o dr ew ou r a t t e n ti o n t o C i rc ul ar N o. 22 / 2 01 5 da t ed 17 t h D e c e mb e r ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 15 w he re in , i t is cl a ri fi e d t ha t no d is a l lo w a nc e s hal l be m ad e fo r e mpl o y e r s’ s h ar e o f c o n t r i b ut i o n w h i c h is de pos i te d b e fo r e ' du e d a t e ' o f fi l in g o f r et ur n o f I n co me . H ow e v e r, it fu rt he r cl ari fi es t h a t t h i s Ci r cu la r do es n ot a pp ly t o c l a i m o f de du c ti on r e l a t i ng t o e mpl o y e e ' s c on t r i b ut i o n t o w el fa re fun ds w h ic h a re go ve rn ed b y s ec t io n 36( 1) (v a) o f t he A c t. 4. 6 A not he r a r g u me nt o f t he L d. D R w a s t ha t S e c t i on 3 6 (l )( va ) o f t h e In c o m e T a x A c t , 19 61 c a n n o t b e r e ad w it h S e c ti on 4 3B as S e ct i ons 36 ( l ) (v a ) a n d 43 B (b) fu nc ti on in di s t in c t s ph er es , w i t h t h e fo r me r a dd r es s i n g e m pl o y e e c on tr ib ut i o ns a nd t he la t t e r a dd r es s i n g e mpl oy e r c o nt r i b u t i o ns . A s a re s u l t, a n a s s e ss ee is o nl y e nt it l e d t o t h e de d uc t i o n u n de r s e c t i o n 4 3 B a s al l ow e d by t h e p r ov i s o fo r t he p or ti on o f t he a mo u nt p a i d by t he e mpl oy er t o t h e co n t r i b u t o ry fu n d. In t he c as e o f t h e e mp l oy e e 's co n t r i b ut io n, the a s s e ss ee is onl y e nt it l e d t o a de d u c ti on u nd er s e ct i o n 3 6( 1 ) ( va ) i f t h e s u ms r ec e i ve d fr o m t he e mp l o y ee is c re d i t e d in a sp ec i fi e d a c c o u nt b y t h e d ue da t e e s ta b l i s h ed by t h e a pp li c a bl e s t at ut e . T he L d. S r. D R a l s o d re w o ur a tt e n t i o n t o t h e j ud g e m en t o f t he H on ' bl e M a d r as H ig h C ou r t i n U n i fa c M an a g e m en t S er vi c e s ( In d i a ) (P . ) L t d. vs D CI T i n 4 09 I T R 2 25 w h er e i n i t h a s b e e n s t a t e d t h at "T h e s c o p e of s e ct i o n 4 3B an d s e c ti o n 3 6( 1 ) (v a) ar e d i f fe r e n t a n d t hus , t h e r e i s n o q u e s ti o n of r ead i n g b ot h p r o v is i ons t og e t her t o c ons i de r as t o whe th er t h e a ss e s s e e i s e n t i t l e d t o d ed uc t i on i n r es p e c t of t h e s um be la te dl y p a id t ow ar d s s uc h co nt ri bu ti on , e s pe c i a l ly w he n s uc h s um i s , adm i tt e dl y, a s um re c ei v ed b y t he as s e s s ee / em pl oy e r f r om hi s e m p l o y e e . T he r ef or e , f or c o ns i de r i n g s u c h ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 16 qu es t i o n, a pp li c at i on o f s e c t i on 3 6( 1 ) (v a) re ad with s e ct i on 2 (2 4)( x ) a l one is t h e pr op er c o ur s e a n d a ny o t h e r i nt e r pr e t at i on wo u l d on l y de f ea t t he o bj ec t an d s co p e of b o t h t he pr o v i si on s v iz . , 4 3B (b ) a nd 3 6( l )( va ). ” 4. 7 T he L d. S r . D R fur th e r s u b mi t t e d t h a t vi de F ina nc e A c t 2 0 2 1, th e G ove r n me n t h a s fu r th e r a me nd e d th e l aw to br in g ce rt ai n t y t o t h e is s ue . S he s ub m i t t ed t ha t e xp l a na t i o n t o s e ct i o n 36 ( l) (v a ) h a s be e n a dde d c la ri fy i n g th a t p ro v is i on o f se c t i o n 4 3 B do e s n ot app ly a nd i s de e me d t o ne v e r h av e b e e n a p pl i e d f or th e p u rp o se o f de t e r m i ni n g t he " du e da t e" un der t h is c l au s e ; a nd fu rt he r s ec t i o n 4 3 B h a s bee n a me nd e d b y i ns e r t i n g E xp l a na t i on 5 t o t he s a i d s e ct i on t o c l ari f y t ha t t he pr ov i s i o ns o f t h e s a i d s e c t i on do n ot ap p l y a nd ar e d e e m e d t o ne v er h a ve b ee n a pp l i ed t o a s u m re ce i v e d b y t h e a s s es s e e fr o m a n y o f h is e mp l o ye e s t o w hi ch p ro vi s i ons o f 2 ( 2 4) ( x ) a p pl i es . Thi s ma ke s i t a mp l y c le a r t h at t he pr o vi s i o ns w i l l b e a pp l i e d re t r os p e c t i v e l y b ut t h e M e m ora nd u m e xp l a i n i n g F i n a nc e B i ll s a ys t h at t h e s e a m e nd me nt s w i l l t a k e e f fe c t fr o m 1s t A p ri l , 20 2 1 a nd w il l a cc ord in gl y a pp l y to t he as s e s s me n t y e a r 20 21- 2 2 an d s u bs e q ue n t a s s es s men t y e ar s . H ow e ve r, t h e l a n gu a g e o f S e ct i on 3 6 ( 1)( va ) a n d s e ct i on 4 3 B h a v e e x p la na ti on s 2 a n d 5, re s pe ct i ve ly w h e r e i t i s s t a t e d t h a t t hi s a me nd me nt i s t o c l a r i fy th at t h e pr o vi s i o ns o f s e c ti on 4 3B do n ot a pp ly a nd a re d e e me d n ev er t o h a ve be e n ap pl i e d t o e m pl o ye es ' co nt r i b u t i o n. ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 17 4. 8 T he L d. S r. D R a l s o s u b mi t te d t ha t f urt he r i n th e c a s e o f A l l i e d M ot o rs (P ) Lt d v s . Co m mi s s i o n e r o f I nco me T a x , D el hi ( T a x Re fe re nc e N o. 1 /9 4, C A N os . 3175 / 9 1 a n d 23 80 / 9 1 v i de J ud ge m e n t d a t e d 10 . 0 3. 1 99 7), t h e H on' b l e S up re m e Co u rt o f In d i a h as up h el d t he c ur a t in g a nd re t r os pe c ti ve ap p l i c a t i on o f a m e n d me n t t o S e ct i on 43 o f In c o m e T a x A c t. S he fu rt he r s u b m i t t e d t ha t e v e n i n t he ca s e o f A l o m E xt rus i ons L t d . ( s upr a) t h e H o n 'b le S upr e m e Co urt ha s h el d t ha t a me nd m e n t, a s e n a ct e d b y F in a n c e A c t 2 0 03, l e d t o eq u a t i n g t a x, du ty , c es s a nd fe e w i t h c ont ri bu t i ons t o w e l fa r e fu n ds . Th e H o n' bl e S upr e m e Co u rt a l s o he l d t h a t th e a me nd m e n ts t o t he s a i d s ect i o n b r o u ght a bo ut by t he F i n a n c e A c t , 20 03 w i t h e ff e c t f r o m 1 s t A p r i l 2 004 w er e re t ros p e c t i v e i n n a t u re a n d w ou ld o p e r a t e fro m 1 s t A pri l 19 8 8, a s t he s e w er e c l ar i f i c a t or y i n na t u r e. 4. 9 T he L d. S r. D R fu rt h er s ub m i t t ed t h a t as a me nd me nt s t o S e ct i on 36 ( 1) ( v a ) an d S e ct i on 43 B a r e c ur a t iv e a n d cl a r i f i ca to ry, s o t he s e a r e t o be a p pl i e d r et ro s p e ct i v el y. S he a rg u ed t h a t p l a i n re a di ng o f t h e s e s e ct i ons b e fo r e t h e a me nd m e nt s w er e e f fe ct e d, c l ea rl y s ta t e a bo ut t h e no n-a va il a b i li t y o f d e d uc t i on t o t he a s s e ss ee i n c as e o f l a t e d e p os i t o f e mpl o y e e s co n tr i b u t io n. 4. 10 T he L d. S r. D R al s o pl a ce d re l ia nc e o n th e fo ll ow i ng j u d g me nt s : - i ) C IT v . B h a r a t H o te l s Lt d [ 2 0 1 9 ] 1 0 3 t a x m a n n . c om 2 9 5 / 4 1 0 I TR 4 1 7 ( D e l h i ) : i i ) C I T v. G u j a ra t St a t e R o a d Tr a n s p o rt C o r p o r a t i o n [ 2 0 1 4 ] 4 1 t a x m a n n . c o m 1 0 0 /2 2 3 T a x m a n 3 9 8 / 3 6 6 I TR 1 7 0 ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 18 i i i ) U n i f a c M a n a g e m e n t S e r v i c e s ( In d i a ) ( P. ) L t d . vs D C IT i n 4 0 9 IT R 2 2 5 o f H o n ' b l e M a d r a s H i gh C o u r t ( Su p r a ) 5. 0 P e r co n t r a , t he L d . A ut ho r i s ed R e p re se nt a ti ve s ap pe a ri ng o n be h a l f o f t h e c ap t i o ne d as s e s s ee s s ub m it t ed t h a t i t i s s et t l e d l a w by now t ha t e m p l o ye es ’ c o nt r i b ut i o n to E S I a nd P F , th ou gh n ot pai d w it hi n t h e du e d at e s pr e s c ri be d u n d er t h e r e s pe ct i ve A ct , b u t pa id w e l l be for e t he du e d a t e o f fi l i n g o f t h e re tu rn o f i nc o me u/ s 13 9(1 ) o f t h e A ct , w a s a n a ll ow a b l e e x pe ns e. It w a s t h e c on te nt i on o f t h e L d. A Rs t ha t i n t he c ap ti on e d a pp e a l s , th e re s pe ct i v e a s s es s e es ha d d e pos i t ed t he e mp l o y ee s c on t r i b ut i o n t o w a r d s ES I a n d P F w e ll be f o re t he du e da t e o f fi l i ng o f t he r e t u r n o f i n co m e u /s 13 9 ( 1) o f th e A ct a nd t h at t h i s f ac t o f fi l i ng o f re t ur n be fo re t he d ue da t e p r es c ri be d u/ s 13 9( 1 ) o f th e A ct w a s n ot i n di s pu t e . T he L d . A Rs pl a ce d r e l i a n ce o n a p le t h or a o f o rde rs o f t h e va r i o us Be nc h es o f t h e T r i b u na l a c ro s s t he c o un t ry a s w e ll a s o f j ur i s di c t i o na l H i g h Co u rt na me l y H on ' b l e P u nj ab & Ha rya na H i gh Co u rt . I t w a s s u b mi t te d t ha t t he H o n ' bl e K a rn a t a k a H ig h C o ur t, H on ' b l e D el hi H i gh C ou r t, H o n' b l e R a j a s t ha n H i gh C ou r t , H on' b le P at n a H i g h Co u rt , H on ' bl e A l l a h a b a d H i gh C o urt a n d H o n ' b l e G auh a t i H i g h Co u rt h a d r u le d i n f av our o f t he a s se s s e e o n t he i ss u e . Re l ia n c e w a s pl a ce d o n t he f ol l ow i n g j ud i c i a l p r e ce d e n t s l a id dow n b y th e H on ' b l e P unj a b & H a ry a n a H i gh C our t : - a. CIT vs M/s Mark Auto Industries Limited reported in 358 ITR 43 b. CIT vs M/s Hemla Embroidery Mills Pvt. Ltd., ITA No. 16 of 2009 order dated 27.09.2012 ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 19 c. CIT vs Nuchem Ltd., ITA No. 609 of 2009 order dated 22 September, 2014 d. Lakhani Rubber Udyog Punjab and Haryana, 312 ITR 0014. 5. 1 I t w as s ub mi t t e d th at f u rt he r m o re , s i mi l ar j u dg m e n ts h av e be e n pa s s ed by a l m os t a l l t he o t h e r H on ' b le H ig h C our ts a s und e r: - a) Essae Teraoka Pvt. Ltd. 366 ITR 408, Karnataka HC. b) Karnataka High Court in the case of Peerless General Finance and Investment Co. c) Bombay High Court in the case of Ghatage Patil Transports Ltd. [2014] 368 ITR 749 (Bom.) d) Delhi High Court in the case of AIMIL Limited [2010] 321 ITR 508 (Delhi) e) Rajasthan High Court in the case of TATE Bank of Bikaner & Jaipur 363 ITR 70 f) Punjab & Haryana High Court in the case of Lakhani Rubber Udyog (2009) 312 ITR 0014 (154 order) g) Patna High Court in the case of Bihar State Warehousing Corporation Ltd. [2017] 393 ITR 386 h) Allahabad High Court in the case of Sagun Foundry Pvt. Ltd. (2017) 145 DTR 0265 (All) i) Gauhati High Court in the case of George Williamson (Assam) Limited [2006] 284 ITR 619 5. 2 In ad di ti on , o ur at t e nt i o n w a s a ls o dr a w n t o t he fol l ow i ng o r de rs o f t h e I T A T , Ch a nd i ga rh Be nc h , w h er e i n t h e d e d u c t io n o f e mpl oy e e s ’ c on t r i b ut i o n, i f pa i d , b e fo re t h e d u e d a t e o f fi li ng o f re tu rn u / s 139 (1) o f t he A c t , w a s al l ow e d :- a . Digiqal Solution Services Pvt. Ltd. In ITA No.176/Chd/2021 dated 04.10.2021 b. Ajay Piplani Vs ADIT, CPC, Bengaluru in ITA No. 114/CHD/2021 order dated 04.10.2021 ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 20 c. M/s Jupiter Aqua Lines Pvt. Ltd vs DCIT, Circle 6(1) Mohali in ITA No.83/Chd/2021 dated 27th August 2021 (DB) d. The Sirsa Coop. Marketing- cum-Processing LC Society, vs CPC Bengaluru in ITA no. 274/CHD/2021 dated 02.12.2021 e. Mohan Bakery, vs DCIT in ITA no. 273/CHD/2021 dated 02.12.2021 f. Raja Ram Vs. ITO, Yamunanagar in ITA Nos.191 & 192/Chd/2021 dated 20/10/2021 5. 3 It w as t h e c o nt e nt i o n o f t he L d. A Rs t ha t i n th e l i g h t o f th e a bo ve j ud i c ia l pr ec ed en t s , t he a s s e s se e s s houl d b e a l l owe d th e be n e f it o f de d uc t i o n o f E mp l o ye e s ’ Co nt r i bu ti o n t o E S I an d P F , if t he s a me h a ve be e n d e po s i t e d b e f ore t he d ue d a t e o f fi l i ng o f r etur n u /s 13 9(1 ) o f t he A ct . I t w as fa i r l y a c c e p t e d b y t he p a r ti e s t ha t t he i s s ue w a s c o m mo n i n a ll t he c a pt io n e d a p p ea l s a nd w ou ld a p p ly m ut at i s mut a n d i s in a l l c a s es . 6. 0 We ha ve h e a r d th e ri va l s u b m i s s io ns a n d ha ve a ls o p er us e d t h e m at er ia l o n r e c or d . The fa c t t h a t i n a ll t h e c ap ti on e d a p pe a l s , t he e mpl o y e e s ’ c on t r i b u ti on o f E S I a nd P F h a d b ee n d e po s i t e d b e for e t he du e da te o f fi l i ng o f re t ur n u / s 139 ( 1 ) o f t h e A ct i s n o t i n d is p u te . It i s s e e n th a t t h e s a i d i s s ue, a s fa r a s t h e p re s e nt F o r u m i s c on c e rn e d, s t an ds ful l y c o v e r e d i n f av our o f t he a s s e s se e s not onl y b y t he c ons i s t e n t or d er s o f t h e v a r i o us B e n c h e s o f t h e I T AT ac r o s s t he c ou nt r y bu t a l s o b y th e c o n s is t e nt or de rs o f t h e C ha n d i g a r h B en c h o f t he I T A T. It is s ee n th at a l l al o n g, t h e C o -o r d i nat e Be nc he s ha ve h el d t h a t t h e a me nd m e n ts t o S e c t i o ns 36 (1 ) (v a ) a n d u/ s 43 B o f t h e In co m e T a x A ct e ffe c te d b y t he F i n an c e A ct , 2 0 2 1 a re a p pl i ca bl e p ro s p e c t i v el y a nd n ot re t ros p e c t i v e l y. Wh il e c o m in g t o t he s a i d c on cl us io n, t h e Be nc he s h av e ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 21 re l ie d u p on th e N o te s o n Cl au s es a t t he t i m e o f i ntro d uc ti on o f t he F i na n ce A ct , 2 02 1 a nd h a v e he ld t ha t t h e a m en d me n t i s a ppl i ca bl e i n re l at i o n t o t h e a s s es s me n t ye a r 2 02 1 -22 a n d s u bs e q ue nt y ea rs a n d no t re t ros p e c t i v e l y. Th u s , i n v i e w o f t h is l eg al pos i t io n, as c ons i de re d b y t he C o- or d i na t e Be n ch es a nd d ul y t a k i ng n ot e o f t h e j ud ge m en ts o f t h e j ur i s di c t i o na l H i g h C our t i n t h e ca s e o f C I T V s N u ch e m Li mi t ed ( I TA 32 3 o f 2 00 9) a nd C IT V s H e ml a E mb r oi d e r y M il l s P vt . L t d. ( 20 14 ) 3 6 6 IT R 1 6 7, w e a re o f t h e v i e w t ha t t h e a d di t io ns c an not be ma de o r s us t a in e d on t h e s t re n gt h o f t he a me nd m e n t e f fe c t e d b y F i n a nc e A ct , 20 21 t o S ec t io ns 3 6 (1 ) ( va )/ 43 B o f t he A ct a s t h e l eg a l p os i ti on t he r e o n i s ver y c le ar . T h e d e pa r t m e nt a l s ta nd t ha t i t is c la ri f i c at or y i n n at ur e ha s c ons i s t e n t l y b e e n r e j e c t ed. Th u s , i n t h e fa ce o f the c l e a r le ga l po s it i o n, w e fi n d t ha t t h e c l ai m o f th e a s s es s e e i s to b e a l low e d. A lt ho ug h, th e L d. D R h a s a rg ue d a t l e n gt h a n d ha s fo rw ar de d ma n y r e a s o ns i n s up po rt o f h e r co n te nt i o n, w e a r e u n a bl e t o s ubs c r i b e to t he s a m e a s t h e y a re c on t r a r y t o th e l a w la i d d o w n by t h e J ur is d i c t io nal H i g h C o ur t i . e. t h e H on’ bl e P u n ja b & H a ry a n a H i g h C o u rt a n d w e ar e b o u nd t o a p p l y t h e l aw a s l a i d d ow n by t he J u r i sd i c t i o n a l H i g h Co u r t . We a ls o no te t h a t on l y f o ur H on ' bl e H i gh C o ur t s i. e . G u ja r a t H i g h Cour t , M a dr as H i g h Co u rt , M P H ig h C o ur t a n d K e r e l a H i gh C ou rt ha ve g i ve n d is s e nt i ng vi e w as o f n ow on th e s a i d i s s ue . Ho w e ve r, w e ar e b o un d by t he l aw l ai d d ow n b y t he H on 'b l e P u n j a b an d H a rya na H i gh Cou r t i n t h e c as e o f CI T V s . H eml a E mb roi de ry M i l l s ( P ) L t d (s u pra ) w he re i n i t w as c at e g or i c a l l y h e l d t ha t t h e re s p on d en t – a s s e ss e e wa s en t i t le d t o ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 22 de d uc t i o n i n r e s pe ct o f e m p l o ye r a n d e m p lo ye e’ s c o nt ri b ut i o n t o E S I a nd P ro v i d e nt F u nd a s th e s a me h a d b e e n de pos i t ed pr i o r t o t he fi l i ng o f t he re t u rn u/ s 1 39 ( 1) o f t he A c t. T he j u dg me nt o f th e H o n 'b l e G u j a r a t H i gh Co ur t h a s b ee n d i s ti n g u is h e d b y Ch an d ig ar h B ench o f t he I TA T i n t he c as e o f G il c o E xp o rt s L t d . V s . A CI T, Cir cl e 2 ( 1) r e p or t e d i n ( 2 01 9 ) 17 8 IT D 86 5 (C h d . T ri b. ) a n d i t ha s b ee n h e l d th a t a n y su m re c ei ve d fr o m e mp lo ye es t o w ar ds E P F & ES I c on tr ib ut i on de po si te d l a t e b ut be fo r e t he d u e da t e o f fi l in g o f re tu r n w o ul d be e nt i t l e d t o de du c t i o n . It i s al s o t o be n ot e d t ha t i n t er ms o f A r ti c le 2 27 o f t he Co ns t i t u t i o n o f In d i a, w h e n de c is i on o f J u r is d ic t io na l H ig h C o u rt is av ai l ab le o n th e i s s ue , non -J u r is d i c t io n al H i g h C ou r t c an n ot b e fo l low ed . It i s t ri t e t ha t w he n t h er e i s j u dg m e n t o f J ur i s di c ti o na l H i g h Co ur t f o r a n y a u t h or i t y w i th i n i t s t er ri t o r i al j u ri s d i c t i on s u bj e ct ed t o i ts s upe r i n t e nd e nc e, de c is i o n r e c o r de d b y H i g h Co ur t i s a bi n di ng p r ec eden t t o b e f ol lo w e d. It i s a ls o t o be no t e d t ha t ev en t h e M e mo r a n d u m ex pl a i n i n g t he a me nd m e n ts ha s l ai d d ow n t h a t t h e a m e nd m e n ts s h al l b e e ff ec t iv e fr o m a s s es s men t y e a r 20 20 - 21 a n d , t he re fo r e, c ons i de r i n g t he e nt i re ty o f fa c t s a nd ci r c u ms ta nc es (w hi c h a r e i de n t i c a l i n th is bun ch o f a p pe a l s ) a n d re s pe ct fu l l y fo ll ow i ng t he j u d g e m en t o f t h e J ur i s dict i o na l H i gh Co u r t as w el l as t h e Co or di n a t e Be nc hes o f t he Tr ib u n a l, w e a r e o f t h e c ons i de re d v i e w t ha t th e c l a i m o f t he as s e s s ee s w ith r es p e c t t o t he de p os i t o f e mp l o y e e s ’ c o nt r i b u t i o n t o w ar ds E S I a nd P F pa i d b e for e t h e du e d a t e o f fi li ng o f r e t u r n o f i nc o me u /s 1 3 9( 1 ) of t h e A ct d e s e rv e t o s uc c e e d. ITA Nos. 18,09,12,14,15,16,31,32,78-c-22, 394 & 418-c-21 & C.O. 1-c-22- Smt. Madhubala, Punjab & Others , 23 7. 0 A cc or di ng l y, th e a ppe al s o f t h e D ep a rt m e nt be a ri n g I T A N os . 18 / C h d/ 20 2 2 a n d 41 8/ Ch d/ 2 0 2 1 a r e di s mi s s e d an d a pp ea ls o f t h e a s s es s e es be ar in g IT A N os . 0 9 / C hd / 20 2 2, 1 2/ Ch d/ 2 022 , 31/ Ch d/ 20 22, 32 / C h d/ 20 2 2 , 39 4 / C h d/ 20 2 1, 1 4 & 15 / C h d/ 20 2 2 , 78/ Ch d/ 2 0 22 a n d 16 / C h d/ 20 2 2 a r e a l l o w e d. A l s o, t h e C . O . N o 0 1/ Ch d/ 202 2 b e i ng s up p ort i v e i n n a t u r e i s a l lo w ed. O rde r p ro no un c e d o n 21 s t A pr il , 202 2. Sd/-- Sd/- ( N. K. SAINI) (SUDHANSHU SRIVASTAVA) Vice President Judicial Member Dated : 21.04.2022 “आर.के.” आदेशक त+ल,पअ-े,षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु .त/ CIT 4. आयकरआय ु .त (अपील)/ The CIT(A) 5. ,वभागीय त न1ध, आयकरअपील$यआ1धकरण, च3डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar