R K S Motors Private Limited , Hyderabad V. Deputy Commissioner of Income Tax ,Circle-3(1), Hyderabad

ITA 432/Hyd/2021

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 7095 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2018-2019
• Appeal Filed On: 26-10-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SIDDARTH TOSHNIVAL
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B” : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER I.T.A. No.432/HYD/2021 Assessment Year: 2018-19 RKS Motors Private Limited, HYDERABAD [PAN: AAACR9764P] Vs Deputy Commissioner of Income Tax, Circle-3(1), HYDERABAD (Appellant) (Respondent) For Assessee : Shri Siddarth Toshnival, AR For Revenue : Shri Rohit Mujumdar, DR Date of Hearing : 01-12-2021 Date of Pronouncement : 02-12-2021 O R D E R PER S.S.GODARA, J.M. : This assessee’s appeal for AY.2018-19 arises from the from the National Faceless Appeal Centre (NFAC), Delhi’s order dated 31-08-2021 passed in DIN & Order No.ITBA/NFAC/S/250/2021-22/1035197769(1), involving proceedings u/s.250 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) r.w.s.2(24)(x) ESI/PF disallowance of Rs.28,13,730/- made in both the lower proceedings, the ITA No. 432/Hyd/2021 :- 2 -: 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 and after the due date prescribed in the corresponding statute(s); 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(va) of the Act; respectively. However, keeping in mind the fact that the same has been clarified to be applicable 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. No other ground has been pressed before us. 3. This assessee’s appeal is allowed in above terms. Order pronounced in the open court on 2 n d December, 2021 Sd/- Sd/- ( A. MOHAN ALANKAMONY ) ( S.S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 02-12-2021 TNMM ITA No. 432/Hyd/2021 :- 3 -: Copy to : 1.RKS Motors Private Limited, C/o.Siddharth Toshnival, Advocate, 3-5-144/5, Eden Garden, Hyderabad. 2.Deputy Commissioner of Income Tax, Circle-3(1), Hyderabad. 3.CIT(Appeals)-NFAC, Delhi. 4.D.R. ITAT, Hyderabad. 5.Guard File.