Electromech Company, Kolkata V. ADIT (CPC), Bangalore

ITA 247/KOL/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7846 (ITAT-KOLKATA)
• Duration Of Justice: 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 05-08-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Keywords: Capital asset
• Section: 139(1); 43

Judgement Text

1 ITA NO.244/KOL/2021(AKS POWER EQUIPMENTS (P) LTD. A .Y. 2019-20, 246/KOL/2021 (ROHAN GLOVES MANUFACTURING P. LTD. A .Y. 2019-20, 247/KOL/2021 (ELECTROMECH COMPANY) A.Y. 2019-20, 253/KOL/2021 (CLASSIC TANNERY P. LTD. A.Y. 2019-20 & 254/KOL/2021 (S. CHATTERJEE & SONS (INDIA)(P) LTD. A.YS. 2018-19 , B , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA [BEFORE SHRI P. M .JAGTAP, VICE-PRESIDENT (KZ) AND SHRI A. T. VARKEY, JM] I.T.A. NO. 244/KOL/2021 ASSESSMENT YEAR: 2019-20 AKS POWER EQUIPMENTS (P) LTD. (PAN: AAGCA4040B) VS. DCIT, (CPC), BANGALORE APPELLANT RESPONDENT & I.T.A. NO. 246/KOL/2021 ASSESSMENT YEAR: 2019-20 ROHAN GLOVES MANUFACTURING PVT. LTD. (PAN: AAGCR9053D) VS. ADIT, (CPC), BANGALORE APPELLANT RESPONDENT & I.T.A. NO. 247/KOL/2021 ASSESSMENT YEAR: 2019-20 ELECTROMECH COMPANY (PAN: AACFE6715G) VS. ADIT, (CPC), BANGALORE APPELLANT RESPONDENT & I.T.A. NO. 253/KOL/2021 ASSESSMENT YEAR: 2019-20 CLASSIC TANNERY (P) LTD. (PAN: AABCC2803R) VS. DCIT, (CPC), BANGALORE APPELLANT RESPONDENT & I.T.A. NO. 254/KOL/2021 ASSESSMENT YEAR: 2018-19 S.CHATTERJEE & SONS (INDIA) (P) LTD. (PAN: AAHCS2755C) VS. ADIT, (CPC), BANGALORE APPELLANT RESPONDENT DATE OF HEARING (VIRTUAL) 27.08.2021 DATE OF PRONOUNCEMENT 01.09.2021 FOR THE APPELLANT SHRI SUBASH AGARWAL, ADVOCATE FOR THE RESPONDENT SHRI JAYANTA KHANRA, JCIT, SR. D R ORDER 2 ITA NO.244/KOL/2021(AKS POWER EQUIPMENTS (P) LTD. A .Y. 2019-20, 246/KOL/2021 (ROHAN GLOVES MANUFACTURING P. LTD. A .Y. 2019-20, 247/KOL/2021 (ELECTROMECH COMPANY) A.Y. 2019-20, 253/KOL/2021 (CLASSIC TANNERY P. LTD. A.Y. 2019-20 & 254/KOL/2021 (S. CHATTERJEE & SONS (INDIA)(P) LTD. A.YS. 2018-19 PER BENCH: ALL THESE CAPTIONED APPEALS FILED BY DIFFERENT ASS ESSEES ARE AGAINST THE SEPARATE ORDERS OF LD. CIT(A)- [NATIONAL FACELESS A PPEAL CENTRE (NFAC)], DELHI DATED 27.07.2021, 28.04.2021, 28.07.2021, 31.07.20 21 AND 30.07.2021 RESPECTIVELY FOR ASSESSMENT YEARS 2019-20 AND EXCEPT FOR ITA N O. 254/KOL/2021 WHICH IS AY 2018-19. 2. AT THE OUTSET, THE LD. AR SHRI SUBASH AGARWAL, A DVOCATE SUBMITTED THAT THE SOLE ISSUE PERMEATING IN ALL THE FIVE CAPTIONED APP EALS ARE REGARDING THE IMPUGNED ACTION OF THE LD. CIT(A) (NFAC) IN CONFIRMING THE A DDITION MADE BY AO ON ACCOUNT OF DELAY IN PAYMENT OF EMPLOYEES CONTRIBUT ION TOWARDS PF & ESI, EVEN THOUGH THE ASSESSEE HAS REMITTED THE EMPLOYEES CON TRIBUTION TOWARDS PF & ESI BEFORE FILING OF RETURN U/S. 139(1) OF THE INCOME-T AX ACT, 1961[ HEREIN AFTER THE ACT] ACCORDING TO LD. AR, THE AMENDMENT MADE BY THE FINA NCE ACT, 2021 IS NOT APPLICABLE IN THIS CASE, AND THE LD CIT(A) ERRED IN APPLYING THE EXPLANATION BROUGHT IN BY FINANCE ACT, 2021, SINCE THIS TRIBUNAL HAS AL READY HELD THAT THE AMENDMENT/EXPLANATION BROUGHT IN BY FINANCE ACT, 20 21 IS PROSPECTIVE IN NATURE AND NOT APPLICABLE TO THESE ASSESSMENT YEAR BEFORE US AND CITED THE DECISION OF THIS TRIBUNAL IN ITA NO. 186/KOL/2021 HARENDRA NATH BISW AS VS. DCIT, AY 2019-20 DATED 16.07.2021; AND THEREFORE, ACCORDING TO LD. A R, THE ISSUES IN ALL THE APPEALS ARE RES-INTEGRA AND THE ASSESSEE IS ALSO RELYING ON THE DECISION O F THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. M/ S VIJAYSHREE LTD. REPORTED IN [2014] 43 TAXMAN.COM 396(CAL) AND THE TRIBUNALS OR DER CITED SUPRA. PER CONTRA, THE LD. DR SUPPORTS THE ACTION OF THE LD. CIT(A) (NFAC) AND DOES NOT WANT US TO INTERFERE WITH THE ORDER OF LD. CIT(A) (NFAC). 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORD. WE NOTE THAT THE SOLE ISSUE PERMEATING IN ALL THESE APPEALS ARE RELATING TO CONFIRMATION OF ADDITION OF RS.5,21,166/- IN THE APPEAL OF M/S. AKS POWER EQUIP MENTS; AND RS.2,99,752/- IN THE APPEAL OF M/S. ROHAN GLOVES MANUFACTURING P. LT D.; AND RS.71,50,281/- IN THE 3 ITA NO.244/KOL/2021(AKS POWER EQUIPMENTS (P) LTD. A .Y. 2019-20, 246/KOL/2021 (ROHAN GLOVES MANUFACTURING P. LTD. A .Y. 2019-20, 247/KOL/2021 (ELECTROMECH COMPANY) A.Y. 2019-20, 253/KOL/2021 (CLASSIC TANNERY P. LTD. A.Y. 2019-20 & 254/KOL/2021 (S. CHATTERJEE & SONS (INDIA)(P) LTD. A.YS. 2018-19 APPEAL OF M/S. ELECTROMECH COMPANY; AND RS.5,64,186 /- IN THE APPEAL OF M/S. CLASSIC TANNERY P. LTD. AND RS.8,61,565/- IN THE AP PEAL OF M/S. S. CHATTERJEE & SON (INDIA) (P) LTD. BY THE LD. CIT(A) (NFAC) ON ACCOUN T OF ASSESSEES MAKING DELAYED PAYMENT OF EMPLOYEES CONTRIBUTION TOWARDS PF & ESI. IT IS AN ADMITTED FACT WHICH HAS NOT BEEN DISPUTED BY EITHER BY THE A O OR THE LD. CIT(A) THAT THE ASSESSEE HAS REMITTED THE EMPLOYEES CONTRIBUTION T OWARDS PF & ESI BEFORE FILING OF RETURN U/S. 139(1) OF THE ACT. HAVING TAKEN NOTE O F THIS FACT AND ALSO THE FACT THAT THIS TRIBUNAL HAS ALREADY TAKEN A VIEW THAT THE AME NDMENT BROUGHT IN BY FINANCE ACT, 2021 ON THIS ISSUE HAS BEEN HELD TO BE PROSPEC TIVE IN NATURE IN THE CASE OF SHRI HARENDRA NATH BISWAS (SUPRA), THEREFORE, WE REITERA TE THE SAME VIEW THAT THE AMENDMENT/EXPLANATION BROUGHT IN BY FINANCE ACT, 20 21 WITH EFFECT FROM 01.04.2021 ON THIS ISSUE IS PROSPECTIVE; AND TAKING NOTE THAT THE RELEVANT ASSESSMENT YEARS ARE 2019-20 AND 2018-19, THE IBID EXPLANATION BROUGHT IN BY FINANCE ACT, 2021, CANNOT BE USED/APPLIED TO UNSETTLE THE SETTLE D POSITION OF LAW PASSED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF VI JAYSHREE LTD. (SUPRA), SINCE THERE IS NO RETROSPECTIVE LEGISLATIVE OVER-RULING. THERE FORE, WE ARE INCLINED TO ALLOW THE APPEALS OF THE ASSESSEE BY FOLLOWING OUR OWN DECISI ON IN HARENDRA NATH BISWAS (SUPRA). IN THE LIGHT OF THE AFORESAID DECISION OF THE COORDINATE BENCH OF THIS TRIBUNAL, WE RESPECTFULLY FOLLOW THE SAME WHICH IS IN CONSONANCE WITH THE DECISION OF THE HONBLE CALCUTTA HIGH COURT IN VIJAYSHREE LT D. (SUPRA) AND ALLOW THE APPEALS OF THE ASSESSEE AND DIRECT THE AO TO DELETE THE ADD ITION MADE IN THIS REGARD IN ALL THE ABOVE FIVE APPEALS. 4. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE A RE ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 1 ST SEPTEMBER, 2021. SD/- SD/- (P. M. JAGTAP) (A. T. V ARKEY) VICE-PRESIDENT JUDICIAL MEMBER DATED: 01.09.2021 JD, SR. PS 4 ITA NO.244/KOL/2021(AKS POWER EQUIPMENTS (P) LTD. A .Y. 2019-20, 246/KOL/2021 (ROHAN GLOVES MANUFACTURING P. LTD. A .Y. 2019-20, 247/KOL/2021 (ELECTROMECH COMPANY) A.Y. 2019-20, 253/KOL/2021 (CLASSIC TANNERY P. LTD. A.Y. 2019-20 & 254/KOL/2021 (S. CHATTERJEE & SONS (INDIA)(P) LTD. A.YS. 2018-19 COPY OF THE ORDER FORWARDED TO: APPELLANT- I) M/S. AKS POWER EQUIPMENTS (P) LTD. II) M/S. ROHAN GLOVES MANUFACTURING PVT. LTD. III) M/S. ROHAN GLOVES MANUFACTURING PVT. LTD. IV) M/S. ELECTROMECH COMPANY V) M/S. CLASSIC TANNERY (P) LTD. VI) M/S. S.CHATTERJEE & SONS (INDIA) (P) LTD. C/O SUBASH AGARWAL & ASSOCIATES, ADVOCATES, SIDDHA GIBSON, 1, GIBSON LANE, SUITE 213, 2 ND FLOOR, KOLKATA-700069. 2.RESPONDENT DCIT/ADIT, (CPC), BANGALORE 3. THE CIT(A)- NATIONAL FACELESS APPEAL CENTRE (N FAC), DELHI 4. CIT- , 5. DR, KOLKATA BENCHES, KOLKATA (SENT THROUGH E-MAI L) TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY/DDO ITAT, KOLKATA BENCHES, KOLKATA