360 Degree Property and Engineering Services Private Limitred , Hyderabad V. Income Tax Officers ,Ward -11(1), Hyderabad

ITA 380/Hyd/2021

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8443 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 23-09-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHASKAR
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “SMC”, HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER I.T.A. No.380/HYD/2021 Assessment Year: 2018-19 M/s.360 Degree Property and Engineering Services Pvt. Ltd. HYDERABAD [PAN: AAACZ8306R] Vs ADIT, CPC, Bangalore Presently with Income Tax Officer, Ward-11(1), HYDERABAD (Appellant) (Respondent) For Assessee : Shri A.V.Raghuram, AR For Revenue : Shri Bhaskar, DR Date of Hearing : 18-10-2021 Date of Pronouncement : 16-11-2021 O R D E R This assessee’s appeal for AY.2018-19 arises from the National Faceless Appeal Centre (NFAC), Delhi’s order dated 01-09-2021 passed in appeal No.NFAC / 2017-18 / 10013499, involving proceedings u/s.143(3) of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case file perused. 2. Coming to the assessee’s sole substantive issue raised herein of Section 36(1)(va) ESI/PF disallowance of Rs.5,70,349/- made in both the lower proceedings, the assessee’s and Revenue’s pleas before us are that the same has been paid before the due date of filing Sec.139(1) return ITA No. 380/Hyd/2021 :- 2 -: and after the due date prescribed in the corresponding statute(s); respectively. I 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. There is further no issue that the foregoing legislative amendments have proposed employers’ contribution/disallowance u/s.43B as against employee’s contribution u/s.36(va) of the Act; respectively. However, keeping in mind the fact that the same has been clarified to be applicable only with prospective effect from 01-04-2021 only, I hold that the impugned disallowance is not sustainable in view of all these legislative developments. The impugned ESI/PF disallowance is deleted therefore. No other ground has been pressed. 3. This assessee’s appeal is allowed in above terms. Order pronounced in the open court on 16 th November, 2021 Sd/- (S.S.GODARA) JUDICIAL MEMBER Hyderabad, Dated: 16-11-2021 TNMM ITA No. 380/Hyd/2021 :- 3 -: Copy to : 1.M/s.360 Degree Property and Engineering Services Pvt. Ltd., C/o.Flat No.610, 6 th Floor, Babukhan Estate, Basheerbagh, Hyderabad. 2.ADIT, CPC, Bangalore. Presently with Income Tax Officer, Ward-11(1), Hyderabad. 3.National Faceless Appeal Centre (NFAC)-Delhi. 4.D.R. ITAT, Hyderabad. 5.Guard File.