Vision Property Management Services , Secunderabad V. Income Tax Officers ,Ward -10(2) , Hyderabad

ITA 376/Hyd/2021

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6205 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2021
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB-B
• Assessment Year: 2019-2020
• Appeal Filed On: 20-09-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43B; 143(3); 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘B’ BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L. P. SAHU, ACCOUNTANT MEMBER (Through Virtual Hearing) ITA No.376/Hyd/2021 (Assessment Year : 2019-20) M/s. Vision Property Management Services, Secunderabad. PAN AAFFV0933N .....Appellant. Vs. Income Tax Officer, Ward 10(2), Hyderabad. .....Respondent. Appellant By : None. Respondent By : Ms. Matta Padma (D.R.) Date of Hearing : 09.12.2021. Date of Pronouncement : 17.12.2021. O R D E R Per Shri S.S. Godara, J.M. : This assessee’s appeal for Asst. Year 2019-2020 arises from the National Faceless Appeal Centre (NFAC), Delhi’s order dt.16.08.2021 passed in DIN & Order No. ITBA/NFAC/ S /250/ 2021-22 / 1034903936(1) in 2 ITA No.376/Hyd/2021 proceedings under Section 143(3) of Income Tax Act, 1961 (‘the Act’). Heard both the parties. Case file perused. 2. Coming to assessee's first and foremost substantive ground challenging ESI, PF disallowance of Rs.47,11,812 made in both the lower proceedings, the assessee’s and Revenue’s plea before us are that the same had been paid before the due date of filing Sec.139(1) return and after the due date prescribed in the corresponding statutes; respectively. We notice in this factual backdrop that the legislature has not only incorporated necessary amendment in Sections 36(1)(va) as well as u/s. 43B vide Finance Act, 2021 to this effect but also the CBDT has issued Memorandum of Explanation that the same applies w.e.f. 01-04-2021 only. It is further not an issue that the foregoing legislative amendments have proposed employers’ contribution/ disallowance u/s.43B as against employee’s contribution u/s.36(1)(va) of the Act; respectively. However, keeping in mind the fact that the 3 ITA No.376/Hyd/2021 same has been clarified to be applicable only with prospective effect from 01-04-2021 only, we hold that the impugned disallowance is not sustainable in view of all these latest developments. The impugned ESI/PF disallowance is deleted therefore. 3. The factual position appears to be very much different regarding the assessee's second substantive grievance of business expenditure disallowance amounting to Rs.2,89,434 wherein it could not file the necessary evidence since involving 143(1) proceedings and the lower appellate order under challenge being relating during the outbreak of Covid-19 Pandemic, we restore it back to the Assessing Officer for his fresh factual verification as per law within three effective opportunities of hearing. 4. This assessee's appeal is partly allowed in above terms. Order pronounced in the open court on 17th Dec., 2021. Sd/- Sd/- (L.P. SAHU) (S.S. GODARA) Accountant Member Judicial Member Hyderabad, Dt. 17.12.2021. * Reddy gp 4 ITA No.376/Hyd/2021 Copy to : 1. M/s. Vision Property Management Services, Plot No.36,Sri Rama Nilayam, Ground Floor, New Bowenpally, Secunderabad-500 011 2. ITO, Ward10(2), Hyderabad. 3. Pr. C I T, Hyderabad. 4. NFAC, CPC, Bangalore. 5. DR, ITAT, Hyderabad. 6. Guard File. By Order Sr. Pvt. Secretary, ITAT, Hyderabad.