Anmol Feeds (P) Ltd, Howrah V. DCIT, Cir. 13(1), Kolkata

ITA 277/KOL/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6350 (ITAT-KOLKATA)
• Duration Of Justice: 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 31-08-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Section: 139(1); 43

Judgement Text

1 ITA NO.239/KOL/2021, A.Y. 2019-20 ROYAL TOUCH FABLON PVT. LTD., ITA NO.241/KOL/2021, A.Y. 2017-18 PANNA TEXTILE INDUSTRIES PVT. LTD., ITA NO. 277/KOL/2021, A.Y. 2019-20 ANMOL FEEDS PVT. LTD., , A , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOLKATA [BEFORE SHRI P. M .JAGTAP, VICE-PRESIDENT (KZ) AND SHRI A. T. VARKEY, JM] I.T.A. NO. 239/KOL/2021 ASSESSMENT YEAR: 2019-20 ROYAL TOUCH FABLON PVT. LTD. (PAN: AABCR5842F) VS. DCIT, CIRCLE-4(1), KOLKATA APPELLANT RESPONDENT & I.T.A. NO. 241/KOL/2021 ASSESSMENT YEAR: 2017-18 PANNA TEXTILE INDUSTRIES PVT. LTD. (PAN: AABCP5508J) VS. DCIT, CIRCLE-11(1), KOLKATA APPELLANT RESPONDENT & I.T.A. NO. 277/KOL/2021 ASSESSMENT YEAR: 2019-20 ANMOL FEEDS PVT. LTD. (PAN: AACCM8399M) VS. DCIT, CIRCLE-13(1), KOLKATA APPELLANT RESPONDENT DATE OF HEARING (VIRTUAL) 03.09.2021 DATE OF PRONOUNCEMENT 09.09.2021 FOR THE APPELLANT SHRI SUNIL SURANA, AR FOR THE RESPONDENT SHRI JAYANTA KHANRA, JCIT, SR. DR ORDER PER BENCH: ALL THESE CAPTIONED APPEALS FILED BY DIFFERENT ASSESSEES ARE AGAINST THE SEPARATE ORDERS OF LD. CIT(A)- [NATIONAL FACELESS APPEAL CENTRE (NFAC)], DELHI DATED 30.07.2021, 29.07.2021 AND 15.07.2021 RESPECTIVELY FOR ASSESSMENT YEARS 2019-20 AND EXCEPT FOR ITA NO. 241/KOL/2020 WHICH IS AY 2017-18. SINCE GROUNDS ARE COMMON AND FACTS ARE IDENTICAL, WE DISPOSE OF ALL THESE APPEALS BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2 ITA NO.239/KOL/2021, A.Y. 2019-20 ROYAL TOUCH FABLON PVT. LTD., ITA NO.241/KOL/2021, A.Y. 2017-18 PANNA TEXTILE INDUSTRIES PVT. LTD., ITA NO. 277/KOL/2021, A.Y. 2019-20 ANMOL FEEDS PVT. LTD., 2. AT THE OUTSET, THE LD. AR SHRI SUSHIL SURANA SUBMITTED THAT THE SOLE ISSUE PERMEATING IN ALL THE THREE (3) CAPTIONED APPEALS ARE REGARDING THE IMPUGNED ACTION OF THE LD. CIT(A) (NFAC) IN CONFIRMING THE ADDITION MADE BY AO ON ACCOUNT OF DELAY IN PAYMENT OF EMPLOYEES CONTRIBUTION TOWARDS PF & ESI, EVEN THOUGH THE ASSESSEE HAS REMITTED THE EMPLOYEES CONTRIBUTION TOWARDS PF & ESI BEFORE FILING OF RETURN U/S. 139(1) OF THE INCOME-TAX ACT, 1961[ HEREIN AFTER THE ACT] ACCORDING TO LD. AR, THE AMENDMENT MADE BY THE FINANCE 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 ALREADY HELD THAT THE AMENDMENT/EXPLANATION BROUGHT IN BY FINANCE ACT, 2021 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 BISWAS VS. DCIT, AY 2019-20 DATED 16.07.2021; AND THEREFORE, ACCORDING TO LD. AR, THE ISSUES IN ALL THE APPEALS ARE RES-INTEGRA AND THE ASSESSEE IS ALSO RELYING ON THE DECISION OF 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 ORDER 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 RECORD. WE NOTE THAT THE SOLE ISSUE PERMEATING IN ALL THESE APPEALS ARE RELATING TO CONFIRMATION OF ADDITION OF RS.5,16,222/- IN THE APPEAL OF M/S. ROYAL TOUCH FABLON PVT. LTD.; AND RS.2,32,592/- IN THE APPEAL OF M/S. PANNA TEXTILE INDUSTRIES PVT. LTD.; AND RS.8,49,016/- IN THE APPEAL OF M/S. ANMOL FEEDS PVT. LTD. BY THE LD. CIT(A) (NFAC) ON ACCOUNT 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 AO OR THE LD. CIT(A) THAT THE ASSESSEE HAS REMITTED THE EMPLOYEES CONTRIBUTION TOWARDS PF & ESI BEFORE FILING OF RETURN U/S. 139(1) OF THE ACT. HAVING TAKEN NOTE OF THIS FACT AND ALSO THE FACT THAT THIS TRIBUNAL HAS ALREADY TAKEN A VIEW THAT THE AMENDMENT BROUGHT IN 3 ITA NO.239/KOL/2021, A.Y. 2019-20 ROYAL TOUCH FABLON PVT. LTD., ITA NO.241/KOL/2021, A.Y. 2017-18 PANNA TEXTILE INDUSTRIES PVT. LTD., ITA NO. 277/KOL/2021, A.Y. 2019-20 ANMOL FEEDS PVT. LTD., BY FINANCE ACT, 2021 ON THIS ISSUE HAS BEEN HELD TO BE PROSPECTIVE IN NATURE IN THE CASE OF SHRI HARENDRA NATH BISWAS (SUPRA), THEREFORE, WE REITERATE THE SAME VIEW THAT THE AMENDMENT/EXPLANATION BROUGHT IN BY FINANCE ACT, 2021 WITH EFFECT FROM 01.04.2021 ON THIS ISSUE IS PROSPECTIVE; AND TAKING NOTE THAT THE RELEVANT ASSESSMENT YEARS ARE 2019-20 AND 2017-18, THE IBID EXPLANATION BROUGHT IN BY FINANCE ACT, 2021, CANNOT BE USED/APPLIED TO UNSETTLE THE SETTLED POSITION OF LAW PASSED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF VIJAYSHREE LTD. (SUPRA), SINCE THERE IS NO RETROSPECTIVE LEGISLATIVE OVER-RULING. THEREFORE, WE ARE INCLINED TO ALLOW THE APPEALS OF THE ASSESSEE BY FOLLOWING OUR OWN DECISION 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 LTD. (SUPRA) AND ALLOW THE APPEALS OF THE ASSESSEE AND DIRECT THE AO TO DELETE THE ADDITION MADE IN THIS REGARD IN ALL THE ABOVE THREE APPEALS. 4. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 09TH SEPTEMBER, 2021. SD/- SD/- (P. M. JAGTAP) (A. T. VARKEY) VICE-PRESIDENT JUDICIAL MEMBER DATED: 09.09.2021 JD, SR. PS 4 ITA NO.239/KOL/2021, A.Y. 2019-20 ROYAL TOUCH FABLON PVT. LTD., ITA NO.241/KOL/2021, A.Y. 2017-18 PANNA TEXTILE INDUSTRIES PVT. LTD., ITA NO. 277/KOL/2021, A.Y. 2019-20 ANMOL FEEDS PVT. LTD., COPY OF THE ORDER FORWARDED TO: 1. APPELLANT- I) M/S. M/S. ROYAL TOUCH FABLON PVT. LTD., 4, SYNAGOUGE STREET, KOLKATA-700 001. II) M/S. PANNA TEXTILE INDUSTRIES PVT. LTD.,176, JAMUNALAL BAJAJ STREET, KOLKATA-700 007. III) M/S. ANMOL FEEDS PVT. LTD. BIPRANNAPARA JALAN INDUSTRIAL ESTATE, DOMJUR, P.O. BEGRI, JUNGLEPUR, HOWRAH-711411. 2.RESPONDENT DCIT, CIRCLE-4(1), 11(1) & 13(1), KOLKATA. 3. THE CIT(A)- NATIONAL FACELESS APPEAL CENTRE (NFAC), DELHI 4. CIT- , 5. DR, KOLKATA BENCHES, KOLKATA (SENT THROUGH E-MAIL) TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY/DDO ITAT, KOLKATA BENCHES, KOLKATA