A S Infotech E- Solution Private Limited, New Delhi V. Circle-1(1), New Delhi

ITA 1710/DEL/2021

• Counselvise Citation: [NaN] 107 COUNSELVISE.COM (IT) 2183 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2019-2020
• Appeal Filed On: 22-11-2021
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJIV MAHAJAN
• Assessee Lawyers: AMIT GOEL; NIPPUN MITTAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 143(1)

Judgement Text

Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “SMC” BENCH: NEW DELHI (THROUGH VIDEO CONFERENCING ) BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER ITA No.1710/Del/2021 [Assessment Year : 2019-20] A S Infotech E-Solution Pvt.ltd., 61, Ground Floor, Sant Nagar, East of Kailash, New Delhi-110065. PAN-AAKCA1067E vs CPC, Bangalore. APPELLANT RESPONDENT Appellant by Shri Amit Goel, CA & Shri Nippun Mittal, CA Respondent by Shri Sanjiv Mahajan, Sr.DR Date of Hearing 02.03.2022 Date of Pronouncement 02.03.2022 ORDER PER KUL BHARAT, JM : This appeal filed by the assessee for the assessment year 2019- 20 is directed against the order of Ld. CIT(A), National Faceless Appeal Centre (“NFAC”) dated 25.08.2021. 2. The assessee has raised following grounds of appeal:- 1. “On the facts and circumstances of the case and in law, the disallowance of Rs.1,57,277/- made in the Intimation u/s 143(1) without jurisdiction and beyond the scope of provisions of section 143(1) and CIT(A)/National Faceless Appeal Centre erred in not holding so. 2. On the facts and circumstances of the case and in law, the CIT (A)/National Faceless Appeal Centre erred in confirming Page | 2 the addition of Rs. 1,57,277/- made by the assessing officer/CPC on the account of disallowance u/s 36(l)(va) of the Act. 3. The appellant craves leave to add one or more ground of appeal or to alter/modify the existing ground before or at the time of hearing of appeal.” 3. Facts giving rise to the present appeal are that the assessee had filed the return of income for Assessment Year 2019-20 on 24.10.2019 declaring a total income of Rs.3,21,769/-. Thereafter, the return was processed u/s 143(1) of the Income Tax Act, 1961 (“the Act”) by the Central Processing Centre (“CPC”), Bengaluru who made adjustment regarding delay in deposit of employees contribution to PF & ESI. 4. Aggrieved against this, the assessee preferred appeal before Ld.CIT(A), who confirmed the addition. 5. Now, the assessee is in appeal before this Tribunal. 6. Ld. Sr. DR vehemently submitted that law is clear in this respect and he relied upon the decision of Ld.CIT(A). 7. I have heard Ld. Representatives of both the parties and perused the material available on record and gone through the orders of the authority below. The issue in this appeal is related to disallowance of expenditure on account of delay in deposit of employees contribution Page | 3 related to EPF & ESI. The issue is squarely covered by the judgement of Hon’ble Jurisdictional High Court of Delhi in the case of PCIT vs Pro Interactive Service (India) Pvt.Ltd. in ITA No.983/2018 [Del.] order dated 10.09.2018 held as under:- “In view of the judgement of the Division Bench of Delhi High Court in Commissioner of Income Tax versus AIMIL Limited, (2010) 321 ITR 508 (Del.) the issue is covered against the Revenue and, therefore, no substantial question of law arises for consideration in this appeal. The legislative intent was/is to ensure that the amount paid is allowed as an expenditure only when payment is actually made. We do not think that the legislative intent and objective is to treat belated payment of Employee’s Provident Fund (EPD) and Employee’s State Insurance Scheme (ESI) as deemed income of the employer under section 2(23)(x) of the Act.” Therefore, respectfully following the ratio laid down by the Hon’ble Jurisdictional High Court in the above-mentioned binding precedent, I hereby direct the Assessing Officer to delete the disallowance. Thus, grounds raised by the assessee are allowed. 8. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 02 nd March, 2022. Sd/- (KUL BHARAT) JUDICIAL MEMBER *Amit Kumar* Page | 4 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI