RT Vision Technologies Pvt. Ltd. , Delhi V. ACIT Circle 20(2), Delhi

ITA 274/DEL/2022

AI Insights

The case involves RT Vision Technologies Pvt. Ltd., the appellant, contesting the order of the Commissioner of Income Tax (Appeals) - NFAC, Delhi, which confirmed the disallowance made by the Central Processing Center (CPC), Income Tax Department. The disallowance pertained to the alleged delay in depositing employees' contributions to PF and ESI funds under Section 36(1)(va) of the Act for the Assessment Year 2019-20. The primary legal contention was the retrospective applicability of amendments made in the Finance Act, 2021 under Sections 36(1)(va) and 43B, which the assessee argued were arbitrarily and unlawfully applied. The Tribunal, referencing a similar case and precedent, found in favor of the assessee, allowing the deduction claimed under Section 80-IC of the Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121673 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 06-06-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 07-02-2022
• Other Referred Cases: CIT vs. Green dot Health Foods Pvt. Ltd., CIT vs. Contimeters Electricals (P.) Ltd., CIT vs. G. M. Knitting Industries (P.) Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.274/DEL/2022 Assessment Year 2019-20 RT Vision Technologies Pvt. Ltd., 131/8 Krishna Nagar Safdarjung Enclave, Delhi. Vs. ACIT Circle-20(2) Delhi TAN/PAN: AACCR4395J (Appellant) (Respondent) Appellant by: Shri Sidharth Arora, CA Respondent by: Shri Anuj Garg, Sr.DR Date of hearing: 07 06 2023 Date of pronouncement: 13 06 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T h e c a p t i on e d a p p e a l ha s be e n f i l ed b y th e a s s e ss e e a g a i n s t t h e or de r o f t h e l d. C o m m i s si o n e r o f In c o m e T a x ( A p p e a ls) - N F A C , D e l h i ( ‘ C I T ( A ) ’ i n s ho r t ) d a t ed 1 3. 1 2. 2 0 2 1 a r i si n g fr o m the i n t i m a t i on o r d e r da t e d 15 . 09 . 2 0 20 pa s s e d b y t h e A s s e ss i n g O f f i c e r ( AO ) u n d e r S e c ti o n 14 3( 1) o f th e In c om e Ta x A c t, 1 96 1 ( t h e A c t ) c o n c e rn in g A Y 20 1 9 - 2 0. 2. T h e gr o un d s o f a p p e a l r a i se d b y t he a s s e s s e e r ea d a s un de r : “ T h e Ld . C I T ( A ) h a s e r r e d i n l a w a n d fa c t s o f t h e ca s e b y c o n f i r m i n g t h e d i s a l l o w a n c e m a d e b y C e n t r a l P r o c e s s i n g C e n t e r ( C P C) , I n c o m e T a x D e p a r t m e n t a m o u n t i n g t o R s . 2 , 7 2 , 9 0 1 / - o n a c c o u n t o f a l l e g e d d e l a y i n d e p o s i t o f e m p l o y e e s c o n t r i b u t i o n t o P F a n d E S I F u nd u n d e r s e c t i o n 3 6 ( 1 ) ( v a ) o f t h e A c t a s p r e s c r i b e d i n t h e r e s p e c t i v e A c t, w i t h o u t c o n s i d e r i n g th e f a c t t h a t t h e sa m e h a s b e e n d e p o s i t e d b e f o r e d u e d at e o f f i l i n g i n c o m e t a x r e t u r n a n d h e n c e t h e a d d i t i o n s o m a d e w h i c h i s h i g hl y a r b i t r a r y , u n c a l l e d f o r a n d b a d i n l a w . 2 . Th e Ld . C I T ( A ) h a s e r r e d i n l a w a n d f a c t s o f t h e c a s e i n h o l d i n g t h a t t h e a m e n d m e n t s m a d e i n F in a n c e A c t , 2 0 2 1 u n d e r s e c t i o n 3 6 ( 1 ) ( v a ) a n d 4 3 B o f I.T.A. No.274/Del/2022 2 t h e A c t a r e a p p l i c a b l e r e t r o s p e c t i v e l y w h i c h i s c o mp l e t e l y a r b i t r a r y a n d b a s e l e s s . 3 . T h e L d . C I T ( A ) h a s e r r e d i n c o n f i r m i n g t h e d i s a ll o w a n c e m a d e b y C P C w i t h r e s p e c t t o d e d u c t i o n c l a i m e d u n d e r s e c t i o n 8 0 -I C o f t h e A c t i n r e g a rd t o t h e p r o f i t o f u n d e r t a k i n g s i t u a t e d a t s p e c i f i e d a r e a a m o u n t i n g t o R s . 1 , 5 8 , 3 1 , 2 1 0 / - , w h i c h i s h i g h l y u n c a l l e d f o r a n d b a d i n la w . ” 3. G r ou nd s N o . 1 a nd 2 a r e d i s m i s se d a s no t pr e s s e d. 4. G r ou nd N o . 3 c on c e r ns d e d uc t i o n c l ai m e d un d e r S e ct i o n 80 I C o f t he A c t . 5. B r i e fl y s t a t e d, t he as s e s se e i n t h e i ns t a nt c a s e fi l e d r e t u r n o f i nc om e u nd e r S e c t i on 1 3 9 ( 1 ) o f t he A c t o n 15 . 1 0 . 20 19. In t he r e t ur n, t he a s s e s s e e i n t e r al i a c l a i m e d d e d uc t i o n un de r S e ct i o n 8 0 I C a mo un t i n g t o R s. 1 , 5 8 , 31 , 21 0 / - . H o w e ve r , th e pr e s cr ib e d r e p o r t i n F o r m N o. 1 0 C C B t o sup p o r t t h e c l a im o f 80 IC w a s fi l e d b e lat e dl y o n 30 . 11 . 20 19 . Th e r e t ur n w a s f ur t h e r r e vi s e d o n d i f f er e nt po i n t s o n 14 . 03 . 20 20 . A n e s ti m a t i o n u n d er S e ct i o n 1 4 3( 1) w a s d r a w n o n 15 . 09 . 20 20 w he r e i n t he d e d u c t i o n c l a im e d u n de r S e cti o n 8 0 I C a mo un t i n g t o R s. 1 , 58 , 3 1, 2 1 0 / - w a s de n i e d o n th e g r ou n d t h at t he pr e sc r i b e d F o r m N o . 10 C C B t o w a r d s c l a i m o f d e d u c ti o n u n d e r S e c t i o n 80 IC h a s n ot b e e n fi l e d a l on g w it h r e t ur n o f i n c o m e. T h e C I T ( A ) i n fi r st a p p e a l c o n f ir m e d t h e a c t i o n o f t h e A ss e s si n g O f f i c e r t ow a r d s di sa l l o w a n c e o f d e d uc t i o n o n t he g r o un d t h a t F o r m No. 1 0 C C B w a s fi l e d h o w e v e r t h e d ue d a t e o f f il i n g of r e t ur n o f in c o m e p r e sc r ib e d un d e r S e c t i on 13 9( 1 ) of t he A c t . 6. W e f i n d t h a t t h e i s su e i s sq ua r el y c ov er e d i n f av o ur o f t he a s s e s se e b y t h e or d e r o f t h e C o- or d i n a t e B e n c h r e nde r e d i n t he c a s e o f C I T v s. G r ee n do t H e a l t h F o o d s P vt . Lt d . i n ITA N o .84 1 4 / D e l/ 2 0 1 9 or de r da t e d 0 9. 0 2. 2 02 3. T h e C o - o r d i n a t e B e n c h ha s de a lt w it h t he i s su e a s u nd er : “ W e h a v e h e a r d t h e r i v a l s u b m i s s i o n s a n d p e r u s e d t he m a t e r i a l a v a i l a b l e o n r e c o r d . T h e i s s u e i n t h e p r e s e n t g r o u nd i s a b o u t t h e d e n i a l o f c l a i m o f d e d u c t i o n u s 8 0 I C o f t h e A c t b y A O b u t a l l o w i n g t h e c l a i m o f t h e a s s e s s e e b y C I T ( A ) . T h e o n l y r e a s on f o r d e n y i n g t h e I.T.A. No.274/Del/2022 3 c l a i m o f d e d u c t i o n u s 8 0 I C o f t h e A c t b y A O w a s t h at t h e F o r m 1 0 C C B w a s u p l o a d e d b y t h e a s s e s s e e o n t h e w e b s i t e of t h e I n c o m e - t a x D e p a r t m e n t o n 1 0 . 1 1 . 2 0 1 7 w h e r e a s t h e r e t u r n o f i n c o m e w a s f i l e d o n 2 4 . 1 0 . 2 0 1 7 a n d t h e r e t u r n o f i n c o m e w a s p r o c e s s ed u / s . 1 4 3 ( 1 ) o f t h e A c t o n 3 0 . 1 0 . 2 0 1 8 . W e f i n d t h a t C I T ( A ) w h i l e d ec i d i n g t h e i s s u e i n f a v o u r o f t h e a s s e s s e e h a s g i v e n t h e f i n d i n g t h at t h o u g h t h e r e w a s d e l a y i n u p h o l d i n g F o r m 1 0 C C B b u t t h e s a m e w a s u p l oa d e d b e f o r e t h e r e t u r n o f i n c o m e w a s p r o c e s s e d u / s 1 4 3 ( 1 ) o f t he A c t . F o r a l l o w i n g t h e g r o u n d o f a s s e s s e e , C I T ( A ) h a d r e l i e d o n t h e d e c i s i o n o f H o n ' b l e D e l h i H i g h C o u r t i n t h e c a s e o f C I T v s . C o n t i m e t e r s E l e c t r i c a l s ( P . ) L t d . [ 2 0 0 9 ] 1 7 8 T a x m a n 4 2 2 ( D e l h i ) a n d o t h e r d e c i s i o n s . W e f i n d t h a t H o n ' b l e A p e x C o u r t i n t h e ca s e o f C I T v s . G . M . K n i t t i n g I n d u s t r i e s ( P . ) L t d . ( 2 0 1 7 ) 7 1 t a x m a n n .c o m 3 5 ( S C ) h a s h e l d e v e n t h o u g h F o r m 1 0 C C B w a s n o t f i l e d a l o n g w i th t h e r e t u r n o f i n c o m e b u t w h e n t h e s a m e w a s f i l e d b e f o r e t h e f i n a l o r d e r o f a s s e s s m e n t w a s m a d e , a s s e s s e e w a s e n t i t l e d t o c l a i m d e d u c t i o n . B e f o r e u s , R e v e n u e h a s n o t p o i n t e d t o a n y c o n t r a r y b i n d i n g d e c i s i o n i n i t s s u p p o r t n o r h a s p o i n t e d t o a n y f a l l a c y i n t he f i n d i n g s o f C I T ( A ) . W e , t h e r e f o r e , f i n d n o r e a s o n t o i n t e r f e r e w i t h t h e o r d e r o f C I T ( A ) a n d t h u s t h e g r o u n d o f R e v e n u e i s d i s m i s s e d .” 7. I n c on so n a nc e w i t h t he vi e w t a k e n b y t h e Co - o r d in a t e B e nc h, w e fi n d m e r it in t he p l e a o f t h e a s se s s e e f o r r e s t or a ti o n o f t h e d e du ct i o n c la i m e d an d r e v e r s a l o f t he d e ni a l t he r e o f b y t h e Re v e n u e A ut h or i t i e s on t e c h n i c a l gr o un d s. 8. I n t h e r e su l t , t he a p p e al o f t h e a s s e s s ee i s a l lo w e d . Order pronounced in the open Court on 13/06/2023 Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /06/2023 prabhat Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar