M/s Reeford Ventures Pvt. Ltd., Zirakpur V. DCIT/ACIT, Chandigarh

ITA 343/CHANDI/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0291 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 07-11-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 250; 43; 72; 13

Judgement Text

आयकर य कर , य य “ब ”, IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B’, CHANDIGARH BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER ITA No. 343/Chd/2021 (Assessment Year: 2018-19) M/s Reeford Ventures Pvt. Ltd., KA 17/160 Behind Oasia Resort, Zirakpur. बनाम Deputy Commissioner of Income Tax, CPC, Bangalore. थायी लेखा सं./PAN NO: AAGCR3442N नधा रती क ओर से/Assessee by: Shri Vineet Krishan, Adv. राज व क ओर से/ Revenue by : Dr.Ranjit Kaur, Sr.DR स ु नवाई क तार ख/Date of Hearing: 06.01.2022 उदघोषणा क तार ख/Date of Pronouncement: 11.01.2022 (Hearing through Webex) आदेश/ORDER Per Vikram Singh Yadav, Accountant Member: This is an appeal filed by the asses se e against t he order of Learned Commis sioner of I ncome Tax ( A p p e a l s ) , N a t i on a l Fa c e le s s A p pe a l C e n t re ( N F A C ) , D e l h i [ i n s h o r t t h e ‘ Ld . C I T( A ) ’ ] passed u/s 250 of the Income Tax Act, 1961 (in short ‘the Act ’) dated 28.07.2021 for assessme nt year 2018-19, whe rein the asse ssee has taken the following grounds: “1. That the order passed under section 250 by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi in Appeal No. ITB ITA No.343/Chd/2021 A.Y.2018-19 2 A/NFAC/S/250/2021-22/1034482645(1)dated 28.07.2021 is contrary to law and facts of the case. 2. That in the facts and circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) gravelly erred in not following the judgments of the Hon'ble Punjab and Haryana High Court and orders passed by the Hon'ble Income Tax Appellate Tribunal, Chandigarh which are binding on the Commissioner of Income Tax (Appeals). 3. That in the facts and circumstances of the case Learned Commissioner of Income Tax (Appeals) gravelly erred in upholding the action of the Id. Assessing Officer who had made addition of Rs. 8,72,0967- on the alleged ground that the payments in respect of ESI/PF were made late. Although, the appellant had made the payments much before the due date of filing of the Income Tax Return. 4. That the appellant craves to add, amend or alter any ground of appeal before or at the time of hearing of appeal, with the permission of the Hon'ble Income Tax Appellate Tribunal, Chandigarh.” 2. B r ie fl y , t he fa c t s o f t he c a se a re t ha t t he a s se s s e e f ile d it s r e t u r n o f i nc ome o n 30 . 10 . 2 018 d e c l a r in g t o t a l i nc o me o f R s . 82 , 1 6, 5 2 5/- , w hi c h wa s pr o c e s s e d u /s 14 3 ( 1) o f the A c t a nd i n t e r ms o f i nt ima t i o n u /s 1 4 3 (1 ) d a t e d 1 6. 1 0. 20 19 is s u e d by C P C , ha d ma d e di s a l l o w a nc e o f R s .8 , 72 , 0 96/- t o w a r ds l a t e de po s it o f e mpl o y e e s ’ c o n t r ib u t io n t o E SI & PF . 3. O n a p p e a l , t he Ld . C I T( A ) , N F A C h a s c o nf ir me d t h e di s a l l o w a nc e a nd a g a i n s t t he s ai d o r d e r , t he a s s e s se e h a s no w c o me u p i n a pp e a l be f o re u s . 4. D u r i ng t h e c o u rs e o f he a r in g , t he Ld . A R s u b m i t te d t ha t t he a s se s se e h a s de p o s i te d e mpl o y e e s ’ c on t r ib ut i o n ITA No.343/Chd/2021 A.Y.2018-19 3 t o w a r ds E S I a n d P F t h o u g h w i t h t he de la y o f f e w d a ys fr o m t he d ue da t e me nt i o n e d i n t he re s pe c t i ve St a t u t e s, h o w e ve r , t he s a me w a s de p o s i t e d we ll be f or e t he d u e d a te o f f il i ng o f re t u r n o f in c o me u /s 1 3 9 ( 1) o f t h e A c t . I t w a s s u b mi t t e d t ha t t h e s a i d fa c t is n o t u nde r d is p u t e a n d whe re su c h c o n t r ib u t io n ha s b e e n de p o s i te d be fo re t he du e d a te o f fi lin g o f t he re t u r n o f inc o me , n o d i s a l lo w a n c e u /s 3 6 (1 ) (v a ) o f t he A c t c a n b e ma de . I n s u pp o r t , r e li a nc e wa s p l a c e d o n de c i s i o n o f t he H o n ' bl e P u n ja b & H a r y a n a H i g h C o u r t in t h e c a s e o f CI T V s . H e ml a E mb r o i d e r y Mi ll s ( P) Lt d. , 36 6 I TR 11 7 a n d t he de c is io n o f t he H o n 'b le S u p re me C ou r t in t h e c a s e o f C I T V s . A l o m E x t r u s io n Lt d . , 31 9 I TR 3 06 . It w a s fu rt he r s u b mit t e d t h a t t h e a fo r e s a i d d e c i s i o ns ha v e s i nc e be e n fo l l o we d by t he Ho n' b le P u nj a b & H a r y a na H i g h C o u r t in t h e c a s e o f CI T V s . Ma r k A u t o I n d u s t r ie s Lt d. , 35 8 I TR 43 , C I T V s . K a m a l Fa mi l y Tr u s t ( 2 0 1 3 ), 2 1 9 Ta x ma n 81 a n d C I T V s . N u c he m Li mit e d , 5 9 Ta x ma n n. c o m 4 5 5. I t w as s u b mi t t e d t h a t t he Ld . C I T( A ) ha s r e l ie d u p o n t h e a me nd me nt b r o u g ht i n b y t he Fi na n c e A c t , 2 021 w he rei n E x p la n a t i o n - 5 h a s b e e n i ns e r te d. I t w a s s u b mi t t e d th a t the s a i d a me nd me nt h a s b e e n in se rt e d w .e .f . a s se s s me nt y e ar 20 2 1 - 2 2 o nw a r d s a n d ha v e t o b e r e a d p r o s pe c t i ve ly and n o t re t r o s pe c t i ve l y and v a ri o u s B e nc he s o f t he Tr i bu na l h a s be e n t a k i ng a c o ns is t e n t v ie w i n t hi s re g a r d a n d o ur ITA No.343/Chd/2021 A.Y.2018-19 4 re fe re nc e w a s d r a w n t o t he d e c i s i o n o f t h e C ha n d i g ar h B e n c he s o f t h e Tr i b u n a l in t he c a s e o f M /s C za r s F au c e t s Li mi t e d V s . C PC in I TA N o . 25 5 /C hd /2 0 2 1 da t e d 0 2. 1 1 .2 0 21 wh e re in t he re le v a nt f in d in g s r e a d a s u n de r : “ 4 . W e h a v e h e a r d t h e s u b m i s s i o n s a n d p e r u s e d t h e 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 . I t i s s e e n t h a t i n t h e p r e s e n t a p p e a l , t h e a s s e s s e e h a s o n l y a s s a i l e d t h e d i s a l l o w a n c e s u s t a i n e d b y t h e C I T ( A ) v i d e h i s o r d e r p a s s e d u / s 2 5 0 ( 6 ) o f t h e A c t a m o u n t i n g t o R s . 4 , 5 2 , 2 3 1 / - o n t h e g r o u n d s t h a t t h e E S I & P F p a y m e n t s w e r e n o t m a d e w i t h i n t i m e a s p e r t h e r e l e v a n t S t a t u t e . T h e c l a i m o f t h e a s s e s s e e t h a t t h e p a y m e n t s w e r e m a d e b e f o r e t h e d u e d a t e o f f i l i n g o f t h e r e t u r n u / s 1 3 9 ( 1 ) w a s h e l d t o b e n o t r e l e v a n t . I t i s s e e n t h a t t h e s a i d i s s u e a s f a r a s t h e p r e s e n t F o r u m i s c o n c e r n e d , s t a n d s f u l l y c o v e r e d i n f a v o u r o f t h e a s s e s s e e n o t o n l y b y t h e c o n s i s t e n t o r d e r s o f t h e v a r i o u s B e n c h e s o f t h e I T A T n a m e l y ; t h e o r d e r d a t e d 0 3 . 0 8 . 2 0 2 1 o f t h e D e l h i B e n c h e s i n t h e c a s e o f I n s t a E x h i b i t i o n P v t . L t d . V s A C I T i n I T A 6 9 4 1 / D e l / 2 0 1 7 ; o r d e r d a t e d 0 1 . 0 7 . 2 0 2 1 o f t h e H y d e r a b a d B e n c h i n t h e c a s e o f C r e s c e n t R o a d w a y s P v t . L t d . V s D C I T i n I T A N o . 1 9 5 2 / H y d / 2 0 1 8 b u t a l s o c o n s i s t e n t o r d e r s o f t h e C h a n d i g a r h B e n c h . I t i s s e e n t h a t a l l a l o n g t h e C o - o r d i n a t e B e n c h e s h a v e h e l d t h a t t h e a m e n d m e n t s t o S e c t i o n s 3 6 ( 1 ) ( v a ) a n d u / s 4 3 B o f t h e I n c o m e T a x A c t e f f e c t e d b y t h e F i n a n c e A c t , 2 0 2 1 i s a p p l i c a b l e p r o s p e c t i v e l y a n d n o t r e t r o s p e c t i v e l y . W h i l e c o m i n g t o t h e s a i d c o n c l u s i o n , t h e B e n c h e s h a v e r e l i e d u p o n a n d r e a d f r o m t h e N o t e s o n C l a u s e s a t t h e t i m e o f i n t r o d u c t i o n o f t h e F i n a n c e A c t , 2 0 2 1 a n d h a v e h e l d t h a t t h e a m e n d m e n t i s a p p l i c a b l e i n r e l a t i o n t o t h e a s s e s s m e n t y e a r 2 0 2 1 - 2 2 a n d s u b s e q u e n t y e a r s a n d n o t r e t r o s p e c t i v e l y . T h u s , i n v i e w o f t h i s l e g a l p o s i t i o n a s c o n s i d e r e d b y t h e C o - o r d i n a t e B e n c h e s a n d t a k i n g n o t e o f t h e d e c i s i o n s o f t h e j u r i s d i c t i o n a l H i g h C o u r t i n t h e c a s e o f C IT V s N u c h e m L i m i t e d IT A 3 2 3 o f 2 0 0 9 a n d C I T V s H e m l a E m b r o i d e r y M i l l s P v t . L t d . ( 2 0 1 4 ) 3 6 6 I T R 1 6 7 we a r e o f t h e v i e w t h a t t h e a d d i t i o n s c a n n o t ITA No.343/Chd/2021 A.Y.2018-19 5 b e m a d e o r s u s t a i n e d o n t h e s t r e n g t h o f t h e a m e n d m e n t e f f e c t e d b y F i n a n c e A c t , 2 0 2 1 t o S e c t i o n s 3 6 ( 1 ) ( v a ) / 4 3 B o f t h e A c t a s t h e l e g a l p o s i t i o n t h e r e o n i s v e r y c l e a r . T h e d e p a r t m e n t a l s t a n d t h a t i t i s c l a r i f i c a t o r y i n n a t u r e h a s c o n s i s t e n t l y b e e n r e j e c t e d . T h u s , i n t h e f a c e o f t h e c l e a r l e g a l p o s i t i o n , a s s e t o u t h e r e i n a b o v e , w e f i n d t h a t t h e c l a i m o f t h e a s s e s s e e i s t o b e a l l o w e d i n t h e y e a r u n d e r c o n s i d e r a t i o n w h i c h i s 2 0 1 8 - 1 9 a s s e s s m e n t y e a r . T h e i m p u g n e d o r d e r , a c c o r d i n g l y , i s s e t a s i d e a n d t h e A O i s d i r e c t e d t o d e l e t e t h e d i s a l l o w a n c e . T h e a p p e a l o f t h e a s s e s s e e i s a l l o w e d . S a i d o r d e r w a s p r o n o u n c e d i n t h e p r e s e n c e o f t h e p a r t i e s v i a W e b e x . ” 5. P e r c o nt ra , t he Ld . D R r e l ie d u p o n t h e a me nd me nt br o u g h t i n by t h e F i na n ce A c t , 20 2 1 w h e re i n E x pl a nat i o n t o s e c t io n 36 ( 1 )( v a ) o f t h e A c t ha s b e e n in t r o d u c e d . It w a s s u b mi t t e d t ha t f ro m t h e r e a d i ng of t h e s a i d a me n d ment i t is e v i de n t t h a t t he l a w i s a nd ha s a l wa y s b e e n v e r y c le a r t h a t e mp lo y e e s ’ c o nt r ib u t io n t o s pe c i fi e d fu nd w i l l no t b e a ll o we d a s d e d u c t i o n u /s 3 6 (1 ) (v a ) o f t h e A c t i f t he re is de l a y in de po s i t e v e n b y a s in g l e d a y a s p e r t he d ue d a t e s spe c i fie d in t h e re s pe c t i ve St a t u t e s . I t w a s fu rt he r s u b mi t t ed t h a t t h e s a i d a me n d me nt i s o nl y de c l a r a to r y /c l a r i fi c a t o r y i n na t u re a nd , i s , t h e re f o re , a p p l ic a ble wit h r e t r o s pe c t i ve effe c t b y ne c e s s a r y in te n dme n t o f d e e mi n g n a t u re e x p re ss ly s ta t e d t he re i n. The Ld . DR a c c o r di n g l y s u b mit t e d t h a t i n vi e w o f t he u n a mb ig u o u s w o r d in g o f t h e no w a me nd me n t p r o v i sio n s o f s e c t i o ns 3 6 (1 ) (v a ) a nd 4 3 B , i t i s c le a r t h a t t he e mp l o y e e s’ c o n t r ib u t io n c a n b e a ll o we d a s a d e d u c t i o n o nl y i f i t ha d be e n pa i d w it hi n t he p r e s c r i be d d u e d a t e s u nd e r t he ITA No.343/Chd/2021 A.Y.2018-19 6 re le v a n t S t a t u te s a n d t h is p o s i t i o n ha s b e e n c la r i fie d by t he a fo r e s a i d a me ndme n t . I t w a s a c c o r d i ng ly s u b m i t t e d th a t t he re i s n o i n fi r mit y i n t he o r d e r p a s s e d b y t he Ld.C I T(A ) wh e re in he h a s s u s t a in e d t he di s a ll o w a nc e ma d e u /s 1 43 ( 1 ) o f t he A c t , b y the C P C o n a c c o u n t o f a s s e s se e ’s fa il u r e to pa y t he e mpl o y e e s ’ c o n t r ib u t i o n t o w a r d s E S I a n d P F wi t h in t he p re s c ri be d d u e d a te s a s p e r s e c t i o n 3 6( 1 )( v a ) of t he A c t . He a c c o r d in g l y su pp o r t e d t he o r de r o f t he l o we r au tho r i t i e s . 6. W e h a v e h e a r d th e ri v a l c o n t e n t io ns a n d p e r u s e d t he ma t e r i a l a v a i la b l e o n re c o rd . I n t he i ns t a nt c a s e , i t i s no t i n di s p u t e t ha t e mp l o y e e s ’ c o n t r ibu t io n t o E S I a n d P F ha d be e n de p o s i te d we l l be fo re t he du e da t e o f f il i ng of r e t u r n o f in c o me u /s 13 9 ( 1 ) o f t he A c t . We f u r t he r n o te t ha t t h o u g h t he l d . CI T( A ) h a s no t d is p u t e d t h e v a r io u s de c i s i on s o f Ho n ' b l e P u n j a b & Ha r y a na H i g h C o u r t b u t h a s de c i de d t o fo l l o w t he de c i s io n r e n de re d b y t h e H o n' b le G u ja r a t H ig h C o u r t . Gi v e n t he d i v e rg e n t v i e w s t a ke n b y t h e v a ri ou s H ig h C o u r t s a n d i n t he i ns t a n t c a se , t he f a c t t ha t t he ju r is d ic t i o n o v e r t he A s se s s ing o f f ic e r l ie s w i t h t he H o n ' b le Pu nj a b & Ha r y a n a H i g h C o u r t , i n o u r c o n s i d e re d v ie w , t he I d C I T( A ) o u g h t t o h a v e c o n s i de re d an d f o ll o w e d t he dec is io n o f t he ju ri s di c t io n al Pu nj a b & Ha r ya na H ig h C o u r t , a s e v i de nt fr o m s e r ie s o f d e c is io n s r e fe rre d s u p r a , a s t he s a me i s bi n di n g o n a l l t he a p pe l l a te a u t ho r i t i e s a s we ll a s t he ITA No.343/Chd/2021 A.Y.2018-19 7 A s s e s s i ng o f fi ce r u n d e r i t s j u ri s d i c t i o n i n t h e St at e o f Pu nj a b & H a r y a n a . W e fu rt he r n o t e t ha t t he ld C I T( A) h a s re fe rre d t o t h e ame nd me n t br o u g h t i n b y t he F in a n c e A c t , 20 2 1 w h e re i n a n e x pl a n a t i o n ha s b e e n i nt ro du c e d to Se c t i o ns 3 6 (1 ) (v a) a nd u /s 4 3 B o f t h e I nc o me Ta x A ct . I t i s a c o ns i s t e n t p o s it io n a c r o s s v a r i o u s B e nc he s o f t h e Tr i b u n a l in c l u d i ng C ha n d ig a rh B e n c he s t ha t t he a me nd me n t w h ic h ha s b e e n b r o u g ht i n by t he Fi n anc e A c t , 2 0 2 1 sh a l l a p pl y w. e . f. a s s e s s me nt y e a r 2 02 1 - 2 2 a nd s u b s e q ue n t a s s e ss me n t y e a r s a n d t he imp u g n e d a s s e s s me n t y e a r be i ng a s s e s sme n t y e a r 2 0 1 8- 1 9 , t he s a i d a me n d me n t c a n n o t b e a p pl ie d in the in s t a n t c a s e . The re fo re , c o n s i de r ing t h e e n t ire t y of fa c t s a nd c i rc u ms t a nc e s o f t he c a s e a nd fo l l o w i ng t h e de c i s i on s o f v a r io u s Hi g h C o u r t s a s w e ll a s C o o r d i na t e Be n ch e s of the Tr i b u n a l re fe rre d a b o v e , t he add i t i o n ma de b y w a y of a dj u s t me n t w h il e pr o c e s s i ng t he re t u r n o f i nc o me u /s 14 3 ( 1) o f t he A c t , a mo u nt in g t o R s .8 , 72 , 0 96 /- s o mad e b y t he C PC t o w a rd s t he d e po s i t of e mpl o y e e s ’ c o n t r ib u ti o n t o w a r ds E S I a n d P F p a i d b e f o re th e d u e d a te o f fil in g o f t he re t u r n o f i nc o me u / s 1 39 ( 1 ) o f t h e A c t , i s he re by di re c te d t o be de le t e d . ITA No.343/Chd/2021 A.Y.2018-19 8 7. I n t he re s u l t , t he a p p e a l o f t he a s s e s se e i s a l lo we d. O r d e r p r o n o u n c e d o n 11 . 0 1 . 20 2 2 . Sd/- Sd/- (DIVA SINGH) (VIKRAM SINGH YADAV) /Judicial Member /Accountant Member Dated: 11.01.2022 *रती* आदेश क % त&ल'प अ*े'षत/ Copy of the order forwarded to : 1. अपीलाथ+/ The Appellant 2. %,यथ+/ The Respondent 3. आयकर आय ु -त/ CIT 4. आयकर आय ु -त (अपील)/ The CIT(A) 5. 'वभागीय % त न0ध, आयकर अपील य आ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File # $ स / By order, सह (ंज / Assistant Registrar