Dy. Commissioner of Income Tax , Circle-2(1), Hyderabad V. Kapston Facilities Management Limited, Hyderabad

ITA 1710/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7698 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 15-07-2021
• Assessment Year: 2017-2018
• Appeal Filed On: 22-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T CHAITANYA KUMAR
• Keywords: Tax effect
• Section: 43B; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 1710 /HYD./20 1 9 ASSESSMENT YEAR: 201 7 - 18 DY.CIT, CIRCLE 2(1) VS. M/S KAPSTON FACILITIES MANAGEMENT LTD. HYDERABAD HYDERABAD [PAN: AADCK5952F ] ( APPELLANT) (RESPONDENT) FOR DEPARTMENT : SRI ROHIT MUJUMDAR, D.R. FOR A SSESSEE : SRI T. CHAITANYA KUMAR, AR DATE OF HEARING : 15 /0 7 /2021 DATE OF PRONOUNCEMENT : 27 /0 8 /2021 O R D E R PER S.S. GODARA, J.M. THIS REVENUES APPEAL FOR A.Y. 201 4 - 15 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] - 2 , HYDERABADS ORDER DATED 25/06/2019 PASSED IN CASE NO. 10017 /201 9 - 20 IN PROCEEDINGS U/S 14 3( 1 ) OF THE INCOME TAX ACT, 1961 [IN SHORT THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. THE REVENUE HAS RAISED THE FOLLOWING SUBSTANTIVE GROUNDS IN ITS APPEAL. 'THE LD.CIT(A) ERRED IN HOLDING THAT THE DELAYED REMITTANCE OF EMPLOYEES CONTRIBUTION TOWARDS PF/ES IS ALLOWABLE U/S 43B IN SPITE OF SPECIFIC PROVISIONS OF THE INCOME TAX ACT U/S 36(1)(VA) PRO VIDING FOR DISALLOWANCE OF THE SAME' ITA NO. 1710/HYD /2019 AY 2017 - 18 DCIT, CIRCLE 2(1) VS. KAPSTON FACILITIES MANAGEMENT LTD.,HYD. 2 'THE LD. CIT(A) ERRED IN ALLOWING RELIEF RELYING ON THE DECISION OF HON'BLE SUPREME COURT IN THE CASE OF PR.CIT VS. RAJASTHAN STATE BEVERAGES CORPORATION LIMITED IGNORING THE FACT THAT THE APEX COURT HAS NOT DIS CUSSED THE ISSUE WITH REFERENCE TO THE PROVISIONS OF SECTION 36(1)(VA)' [ TOTAL TAX EFFECT : RS. 1,01,72,187/ - ] 'ANY OTHER GROUNDS THAT BE URGED AT THE TIME OF HEARING.' 2. COMING TO THE SOLE SUBSTANTIVE ISSUE OF E SI/PF DISALLOWANCE OF RS. 3,07,66,069/ - THE ASSESSEES AND REVENUES PLEA THAT THE SAME HAS BEEN PAID BEFORE THE DUE DATE OF FILING RETURN AND AFTER THE DUE DATE PRESCRIBED IN THE CORRESPONDING STATUTES; RESPECTIVELY. WE NOTICE IN THIS FACTUAL BACKD ROP THAT THE LEGISLATURE HAS NOT ONLY INCORPORATED NECESSARY AMENDMENTS IN SECTIONS 36(VA) AS WELL AS 43B VIDE FINANCE ACT, 2021 TO THIS EFFECT BUT ALSO THE CBDT HAS ISSUED MEMORANDUM OF EXPLANATION THAT THE SAME APPLIES W.E.F. 1.4.2021 ONLY. IT IS F URTHER NOT AN ISSUE THAT THE FOREGOING LEGISLATIVE AMENDMENTS HAVE PROPOSED EMPLOYERS CONTRIBUTION; DISALLOWANCE U/S 43B AS AGAINST EMPLOYEES CONTRIBUTION U/S 36 (VA) OF THE ACT; RESPECTIVELY. HOWEVER, KEEPING IN MIND THE FACT THAT THE SAME HAS BEE N CLARIFIED TO BE APPLICABLE ONLY WITH PROSPECTIVE EFFECT FROM 1.4.2021, WE HOLD THAT THE IMPUGNED DISALLOWANCE IS NOT SUSTAINABLE IN VIEW OF ALL THESE LATEST DEVELOPMENTS . THIS REVENUES GROUND IS REJECTED THEREFORE AND CIT(A)S ORDER IS UPHELD. THIS REVENUES APPEAL IS DISMISSED IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 27 /0 8 /2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 27 TH AUGUST, 2021 *GMV ITA NO. 1710/HYD /2019 AY 2017 - 18 DCIT, CIRCLE 2(1) VS. KAPSTON FACILITIES MANAGEMENT LTD.,HYD. 3 COPY OF ORDER FORWARDED TO: 1. DY.CIT, CIRCLE 2(1), HYDERABAD 2. M/S KAPSTON FACILITIES MANAGEMENT LIMITED, NO 287, MIG II, IX PHASE, KPHB, KUKATPALLY, HYDERABAD 3. A CIT, RANGE 2 , HYDERABAD 4 CIT(A) - 2 , HYDERABAD 5 PR.CIT - 2 , HYDERABAD . 6 D.R. ITAT HYDERABAD 7 GUARD FILE