Crescent Roadways Private Limited , Secunderabad V. Dy. Commissioner of Income Tax , Circle-1(2), Hyderabad

ITA 1952/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1421 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 10-06-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 25-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43B; 201; 139(1); 20

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. 1 952 /HYD./20 18 ASSESSMENT YEAR: 201 5 - 16 M/S C RESCENT ROADWAYS PRIVATE LIMITED . VS. DY.CIT, CIRCLE 1(2) SECUNDERABAD HYDERABAD [PAN: AA BC C 9003F ] (APPELLANT) (RESPONDENT) FOR APPELLANT : SRI S.RAMA RAO, ADV . FOR RESPONDENT : S RI ROHIT MUJUMDAR, DR DATE OF HEARING : 10 /0 6 /2021 DATE OF PRONOUNCEMENT : 01 /0 7 /2021 O R D E R PER S.S. GODARA, J.M. THIS ASSESSEES APPEAL FOR A.Y. 201 5 - 16 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] - 1 , HYDERABADS ORDER DATED 11.06.2018 PASSED IN CASE NO. 0 109 /2018 - 19 IN PROCEEDINGS U/S 14 3(3) OF THE INCOME TAX ACT, 1961 [IN SHORT THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. THE ASSESSEE HAS RAISED THE FOLLOWING SUBSTANTIVE GROUNDS IN ITS APPEAL. 2. THE LD.CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS . 2,83,203/ - MADE BY THE ASSESSING OFFICER REPRESENTING DELAY IN REMITTANCE OF EMPLOYEES CONTRIBUTION TOWARDS PROVIDENT FUND. ITA 1952 /HYD/ 20 18 AY: 201 5 - 16 M/S CRESCENT ROADWAYS PVT. LTD. 2 3. THE LD.CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS . 44,129/ - MADE BY THE ASSESSING OFFICER REPRESENTING DELAY IN REMITTANCE OF EMPLOYEES CONTRIBUTION TOWARDS ESI . 2. COMING TO THE SOLE SUBSTANTIVE ISSUE OF ESI/PF DISALLOWANCE OF RS. 3,27,332 / - , THE ASSESSEES AND REVENUES PLEA THAT THE SAME HAS BEEN PAI D BEFORE THE DUE DATE OF FILING SEC. 139(1) RETURN AND AFTER THE DUE DATE PRESCRIBED IN THE CORRESPONDING STATUTES; RESPECTIVELY. WE NOTICE IN THIS FACTUAL BACKDROP THAT THE LEGISLATURE HAS NOT ONLY INCORPORATED NECESSARY AMENDMENT IN SECTIONS 36 (1) (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 FURTHER NOT AN ISSUE THAT THE FOREGOING LEGISLATIVE AMENDMENTS HAVE PROPOSED EMPLOYERS C ONTRIBUTION/ 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 BEEN 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 . THE IMPUGNED ESI/PF DISALLOWANCE IS DELETED THEREFORE. THIS ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 01 ST /0 7 /2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 01 ST JU LY , 2021 *GMV ITA 1952 /HYD/ 20 18 AY: 201 5 - 16 M/S CRESCENT ROADWAYS PVT. LTD. 3 COPY OF ORDER FORWARDED TO: 1. M/S CRESCENT ROADWAYS PRIVATE LIMITED, NO. 512, CHENOY TRADE CENTRE, NO.116, PARK LANE, SECUNDERABAD 500 003 , TELANGANA 2. DY.CIT, CIRCLE 1(2), HYDERABAD 3. JCIT, RANGE 1, HYDERABAD 4 CIT(A) - 1 , HYDERABAD 5 PR.CIT - 1, HYDERABAD . 6 D.R. ITAT HYDERABAD 7 GUARD FILE