CMI Ltd., New Delhi V. DCIT, Circle 5(2), New Delhi

ITA 2319/DEL/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 3714 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 14-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘B’: NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.2319/DEL/2019 [Assessment Year: 2013-14] M/s CMI Ltd. C-483, Yojna Vihar, Delhi-110092 Vs DCIT, Circle-5(2), New Delhi PAN-AAACC2156L Assessee Revenue Assessee by Sh. Neelesh Kumar Jain, CA Revenue by Sh.Vivek Vardhan, Sr.DR Date of Hearing 27.04.2022 Date of Pronouncement 27.04.2022 ORDER PER R.K. PANDA, AM, This appeal filed by the assessee is directed against the order dated 31.01.2017 of the learned CIT(A)-2, New Delhi, relating to AY 2013-14. 2. The addition of Rs.2,35,239/- by the AO on account of delayed contribution to PF & ESI and upheld by the ld. CIT(A) is the only issue raised by the assessee in the grounds of appeal. 2.1. Facts of the case, in brief, are that the assessee is a company engaged in the business of manufacturing of power 2 ITA No.2319/Del/2019 cables and insulated wires and cables. It filed its return of income on 29.03.2014 declaring total income of Rs.2,99,04,190/-. The AO completed the assessment u/s143(3) on 14.03.2016, wherein, he made addition of Rs.2,35,239/- u/s 36(i)(va) of the Act on account of late deposit of PF and ESI contributed by employees as per the following details:- S.No. Name of Fund Employees Share Actual Date of Payment Due Date 1 Provident Fund 65731 22.05.2012 15.05.2012 2 Provident Fund 61885 28.08.2012 15.08.2012 3 Provident Fund 10885 22.09.2012 15.09.2012 4 Provident Fund 74999 22.02.2013 15.02.2013 5 Employees State Insurance 10707 26.02.2013 21.02.2013 6 Employees State Insurance 11032 03.05.2013 21.04.2013 235239 3. In appeal, the ld. CIT(A) sustained the addition u/s 36(i)(va) r.w.s. 2(24)(x) of the Act. 4. Aggrieved with such order of the Ld. CIT, the assessee is in appeal before the Tribunal. 5. We have heard the rival arguments made by both the sides and perused the record. Admittedly, the employee’s 3 ITA No.2319/Del/2019 contribution to PF & ESI has been deposited by the assessee prior to the due date of filing of return u/s 139(1) of the Act. The Co-ordinate Benches of the Tribunal are taking the consistent view that if the employee’s contribution to PF & ESI are deposited prior to the due date of filing of the return u/s 139(1) then no disallowance u/s 36(i)(va)r.w.s 2(24)(x) shall be made. It has also been held that the amendment to provisions of section 36(i)(va) are prospective in nature and not retrospective. Since, the assessee in the instant case has admittedly deposited the employee’s contribution to PF & ESI before the due date of filing of return, therefore, we set-aside the order of the ld. CIT(A) and direct the AO to delete the addition. The ground raised by the assessee is accordingly allowed. 6. In the result, the appeal filed by the assessee is allowed. The Order was pronounced in the open court at the time of hearing itself i.e. on 27.04.2022. Sd/- Sd/- [ANUBHAV SHARMA] [R.K.PANDA] JUDICIAL MEMBER ACCOUNTANT MEMBER Delhi; Dated: 27.04.2022. f{x~{tÜ? f{x~{tÜ?f{x~{tÜ? f{x~{tÜ? fÜA fÜA fÜA fÜA P.S P.SP.S P.S 4 ITA No.2319/Del/2019 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi