S M Logistics & Warehousing Co. Pvt Ltd, New Delhi V. ITO WARD - 22(4), New Delhi

ITA 1675/DEL/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 1251 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2017-2018
• Appeal Filed On: 11-10-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.1675/DEL/2020 Assessment Year 2017-18 S.M. Logistics & Warehousing Co. Pvt. Ltd., E-155, Lodhi Road, Karbala, B.K. Dutt Colony, Delhi. v. ITO, Ward-22(4) Delhi. TAN/PAN: AARCS9285P (Appellant) (Respondent) Appellant by: Shri Manoj Kumar, CA Respondent by: Shri Abhishek Kumar, Sr.DR Date of hearing: 25 05 2022 Date of pronouncement: 05 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The c apt io ne d ap p eal ha s be en f i le d at th e i ns ta nc e o f the ass es se e a ga in st t he or der of t he Co mmi s si on er of Inc o me Ta x (Ap pe al s) -V III , [ ‘ CI T( A)’ i n sh or t], dat ed 2 8. 08 .2 02 0 a ris in g f r o m the i nt i mat io n or d er da te d 15 .0 3. 20 19 p as sed b y t he D y. C IT , Ce ntr al Pr oc es si ng Ce nt er, B an ga lo re , u nd er Se ct io n 1 4 3(1 ) of th e Inc o me Ta x Ac t, 19 61 (t he A ct) c on ce r nin g A Y 2 01 7- 18 . 2. As pe r i ts gr ou n ds of ap pe al , t h e a ss ess ee h ere in ha s cha ll en ge d t he di sa llo wa nc e of R s. 5, 3 9,4 74 /- on ac co un t of del a ye d pa yme nt of e mpl o yee’ s co ntr ib ut io n to war ds E P F a nd E SI . 3. W h en t he mat te r was ca lle d f or h ea rin g, ld. co unse l f or t he ass es se e, S hri M a noj K u mar , CA s ub mit te d th at th e impu gn ed I.T.A. No.1675/Del/2020 2 e mplo ye e ’ s c on tr ib uti on t ow ar ds P F and E SI C ha s b een p ai d a nd dep os it ed b ef or e t he d ue d ate a ll o we d u/ s.1 3 9(1 ) altho ug h t he ass es se e h as re mi t ted th e p a yme nt b ela te dl y a nd be yo nd the d ue dat es s pe cif ie d in res pe ct s Act s. I t w as th us c ont en de d tha t wh er e the a ss es se e ha s co mpli ed wit h th e o bli ga ti on of payme nt to wa rd s e mplo ye e ’ s co nt ri b uti on bef or e t he d ue d at e, t he d ed u cti on s ar e all ow ab le u /s .3 6( 1 )(v a) of t he Act as h eld in sev e ral ju dic ia l pro no un ce me nt s in clu di ng t he dec is io n of Hon ’b le D el hi Hig h co ur t in th e c as e of Pr. CI T v s. Pr o In ter a cti ve Se rv ic e (In di a) Pv t. Lt d. vid e or de r d at ed 1 0 .09 .2 01 8 in I TA N o .98 3/ 20 18 . 4. Ld. D R f or the R e ven ue re li ed up on the in ti ma ti on or de r an d the f ir st ap pe ll ate o rde r. 5. On p er us al of th e rec ord s, we o bs e rve tha t t he Ass e ssi ng Of f icer ha s mad e the i mpu gn ed ad di tio n o n t he gr ou nd t hat th e ass es se e ha s de po s ite d e mpl o ye e ’s c o ntr ib ut io n to ward s Pro vi den t Fu nd an d ES I a mo un tin g to R s. 5 ,39 ,4 74 /- af te r du e dat e a s pre sc ri be d u nd er th e re le va nt Ac t/ R ul es in br ea ch of Ex pla na ti on 5 to Se ct io n 4 3B o f the Ac t. T he A sse ss in g Of f icer a cco rd in gl y res or te d to t he ad d iti on s u nde r S ec tio n 36 (1 )( va) rea d w ith Se cti on 2(2 4) (x ) of th e Ac t. 6. It i s t he ca se of t h e as se ss ee bef or e l ow er a ut ho ri tie s t h at i t has dep os it ed t he e mp lo ye e ’s c on tr ib u tio n in E P F and ES I bef or e th e due dat e of f ilin g of retur n of inc o me st ip ula te d un der Sec ti on 13 9(1 ) of t he Ac t. 7. W e f in d t ha t th e i d ent ic al i ss ue ha s b een de ci ded in f a v our of the a ss es see b y t he Ho n’ bl e Del hi H ig h C ou rt i n t he ca se of P r. CI T vs. Pr o In te ra ct iv e Se rv ice (In di a ) Pvt . Lt d. vi de o rde r d at ed 10. 09 .2 01 8 in IT A No. 98 3/ 20 18. Th e ext ra ct of th e j ud g ment is I.T.A. No.1675/Del/2020 3 rep ro du ce d a s un de r: “ I n v i e w o f t h e j u d g m e n t o f t h e D i v i s i o n B e n c h o f De l h i H i g h C o u r t i n C o m m i s s i o n e r o f I n c o m e - T a x v e r s u s A i m i l L im i t e d , ( 2 0 1 0 ) 3 2 1 I T R 5 0 8 ( D e l ) t h e i s s u e i s c o v e r e d a g a i n s t t h e R e v e n u e a n d , t h e r e f o r e , n o s u b s t a n t i a l q u e s t i o n o f l a w a r i s e s f or c o n s i d e r a t i o n i n t h i s a p p e a l . T h e l e g i s l a t i v e i n t e n t w a s / i s t o e n s u r e t h a t t h e am o u n t p a i d i s a l l o w e d a s a n e x p e n d i t u r e o n l y w h e n p a y m e n t i s a c t ua l l y m a d e . We d o n o t t h i n k t h a t t h e l e g i s l a t i v e i n t e n t a n d o b j e c ti v e i s t o t r e a t b e l a t e d p a y m e n t o f E m p l o y e e ' s P r o v i d e n t F u n d ( E P F ) a n d E m p l o y e e ' s S t a t e I n s u r a n c e S c h e m e (E S I ) a s d e e m e d in c o m e o f t h e e m p l o y e r u n d e r S e c t i o n 2 ( 2 4 ) ( x ) o f t h e A c t . ” 8. Re spe ctf u ll y f o ll o wi ng t he bi ndi n g pre ce den ts of H on’ bl e Del hi Hi gh Co urt , we d ir ect th e As se s sin g Of f ice r to al lo w th e cl ai m of the as ses se e a nd del et e th e a dd it io n. Hen ce , t he g ro un d s of ap pea l rai se d b y th e as se ss ee ar e a ll ow ed . 9. W h ile co nc lu di ng so, we al so tak e not e of t he p le a o f the ass es se e th at d el a ye d pa yme n t of e mp lo ye e ’s c on t ribut io n to PF /E SI C i s no t d is a llo wa bl e a s th e a m end me nt s to Sect io n 3 6( 1) (va ) and Se cti on 43 B ef f ected b y F in an c e Ac t, 2 02 1 we re app lic ab le pro sp ec ti vel y in rela ti on t o As ses s men t Ye ar 2 02 1-22 an d su bse qu en t ye ar s. The ref o re, th e c lai m of de du ct io n of con tr ib ut io n to E mp lo ye e ’s St a te In su ra nc e Sc he me ( ES I) a nd P ro vid en t F un d u/s .3 6( 1) (v a) c ou ld not be de ni ed to th e as se ss ee in As se s s ment Y ear 20 17- 18 i n qu est io n o n th e b as is of a me nd me nt s ma de b y Fi na nc e Act , 20 21 . F or th is pro po si ti on , we f in d su pp ort f ro m th e dec is io n of the C o- or di nat e Be nch of Tri bu na l in th e c as e of Th e Co nti ne nt al Res ta ur an t an d Ca f é C o mp any v s. I TO as r ep or te d in (2 0 21 ) 9 1 IT R (Tr ib . )(S .N . ) 6 0 (B an g. ) an d Ad ya r A na nd a Bh av an Sw e ets In di a P. I.T.A. No.1675/Del/2020 4 Lt d. vs . AC IT , I TA N o. 40 2 an d 40 3/ Ch ny/ 20 21 o r der dat ed 08. 12 .2 02 1. C on se que nt l y, the a ct io n of re ve nue o n th is sco re i s s et asi de a nd ca nc el le d . 10. W e f u rt he r not ic e tha t th e i mpu gn ed add it io n of R s. 53 9 47 4/- has b ee n mad e wh i le pr oce ss in g the r etu rn of i nc o me u n der S ect io n 14 3(1 ) of t he A ct. The Co- or di na te B e nch of th e Tribu na l in t he c ase of Kal pe sh S yn th et ics (P. ) L td . vs . D CI T (2 02 2 ) 1 37 taxm an n.c om 47 5 (Mu m. Tr ib ) o bse rv ed th at sc op e of pr im a f ac ie di sal lo wa nc e un der Sec ti on 14 3 (1) i s i nh ere nt l y ver y li mi te d an d onl y s uc h dis al lo wa nc e can b e mad e un de r th is sta tu to r y p ro visio n as can b e con cl us iv el y he ld t o be in ad mi ss ib le bas ed on ma te ria l on r ec or d. The cl ai m of t he a ss es see f o r all ow ab ili t y of e mp loye e ’ s con tr ib ut io n t o P F/ ES IC un de r S ect io n 3 6(1 )( va ) r .w.s. 2(2 4) (x ) of the Act is b ac ked b y bi nd in g ju di ci al pr ec ed en t of th e Ho n’ ble Jur is di ct io nal Hi gh Cou rt a nd h en ce s uch adj us t men ts un der Sec ti on 14 3(1 ), a t t he min i mu m, c an no t f all i n th is c at eg ory. H e nce on t hi s sco re al so , t he a dju st me nt s t o war d s e mp lo ye e s co nt rib ut io n t o PF /E SI C res ul ti ng i n d is al lo wa nce t he r eof i s no t p er mi ss ib le in la w. 11. In th e res ul t, t he ap pea l of th e as se ss ee is a ll ow ed. Order was pronounced in the open Court on 25/05/2022. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 25/05/2022 Prabhat