Alfa Securities & Allied Services , Hyderabad V. Deputy Commissioner of Income Tax ,Circle -1(1) , Hyderabad

ITA 230/Hyd/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4625 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2019-2020
• Appeal Filed On: 15-06-2021
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D J PRABHAKAR ANAND
• Assessee Lawyers: M V ANIL KUMAR
• Section: 43B; 201; 139(1); 13

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 S . 229 & 230 /HYD./20 21 ASSESSMENT YEAR: 201 8 - 19 & 2019 - 20 M/S ALFA SECURITIES & ALLIED SERVICES VS. DY.CIT, CIRCLE 1(1) HYDERABAD HYDERABAD [PAN: AAIFA5318H ] (APPELLANT) (RESPONDENT) FOR APPELLANT : SRI M.V. ANIL KUMAR, C.A. FOR RESPONDENT : S RI D.J. PRABHAKAR ANAND, DR DATE OF HEARING : 13 /0 9 /2021 DATE OF PRONOUNCEMENT : 30 /0 9 /2021 O R D E R PER S.S. GODARA, J.M. TH ESE ASSESSEES APPEAL S FOR A.Y. 201 8 - 19 & 2019 - 20 ARISE AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] - 1 , HYDERABADS ORDER S ; BOTH DATED 17.04.2021 PASSED IN CASE NO S . 1032485634(1) & 1032485715(1) RESPECTIVELY ; IN PROCEEDINGS U/S 14 3( 1 ) OF THE INCOME TAX ACT, 1961 [IN SHORT THE ACT]. ITA NOS. 229 & 230 /HYD/ 2021 AY: 20 18 - 19 & 2019 - 20 M/S ALFA SECURITIES & ALLIED SERVICES, HYD. 2 HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE IN FORMER APPEAL ITA 229/H/2021 AND FIRST ISSUE IN LATTER APPEAL ITA 230/HYD/2021 IS THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN INVOKING SEC. 36(1) (VA) R.W.S. 43B DISALLOWANCE OF ESI A N D PF DESPITE THE FAC T THAT THE SAME HAD BEEN PAID WELL BEFORE DUE DATE OF FILING RETURN (S) U/S 139(1) OF THE ACT, IS FOUND TO BE NO MORE RES INTEGRA. WE NOTICE IN THIS FACTUAL BACKDROP THAT THE LEGISLATURE HAS NOT ONLY INCORPORATED NECESSARY AMENDMENT 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 FURTHER 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 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 . ACCORDINGLY THE IMPUGNED ESI/PF DISALLOWANCE IS DIRECTED TO BE DELETED IN BOTH CASES . ASSESSESS FORMER APPEAL ITA 229/HYD/2021 RAISING THIS SOLE ISSUE IS ALLOWED WHE REAS THE CORRESPONDING FIRST GRIEVANCE IN LATTER APPEAL ITA 230/HYD/2021 IS ACCEPTED. 3. WE ARE NOW LEFT WITH ASSESSEES LATTER SUBSTANTIVE GRIEVANCE IN ITA 230 / HYD/2021 CHALLENGING DISALLOWANCE OF RS.25,278/ - REPRESENTING THE ALLEGED INCONSISTENCY BETWEEN FORM 3CD AND ITR . LD.COUNSELS SOLE ARGUMENT IS THAT THE ASSESSEE HAS ALREADY DISALLOWED THE SAME IN ITS COMPUTATION. WE THEREFORE RESTORE THE INSTANT LATTER ISSUE T O THE ASSESSING OFFICER FOR HIS AFRESH VERIFICATION AS PER LAW WITHIN THREE EFFECTIVE OPPORTUNITIES OF HEARING. ITA NOS. 229 & 230 /HYD/ 2021 AY: 20 18 - 19 & 2019 - 20 M/S ALFA SECURITIES & ALLIED SERVICES, HYD. 3 NO OTHER GROUND HAS BEEN PRESSED BEFORE US. THE A SSESSEES FORMER APPEAL ITA 229/HYD/2021 IS ALLOWED AND THE LATTER APPEAL ITA 230/HYD/2021 IS PARTLY ALLOWED IN ABOVE TERMS. A COPY OF THIS COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN OPEN COURT ON 30 /0 9 /2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 30 TH SEPTEMBER, 2021 *GMV COPY OF ORDER FORWARDED TO: 1. M/S ALFA SECURITIES & ALLIED SERVICES, C/O M. ANANDAM & CO., CHARTERED ACCOUNTANTS, FLAT NO. 7A, SURYA TOWERS, S.P. ROAD, HYDERABAD 500 00 3 , TELANGANA 2. DY.CIT, CIRCLE 1(1), HYDERABAD 3. CIT(A), NATIONAL FACELESS APPEAL CENTRE [NFAC], DELHI 4 D.R. ITAT HYDERABAD 5 GUARD FILE