Jai Balajee Security Services Private Limited , Tirupathi V. Assistant Commissioner of Income Tax ,Circle-1(1), Tirupathi

ITA 485/Hyd/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 9867 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2019-2020
• Appeal Filed On: 23-11-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROHIT MAJUMDAR
• Section: 43B; 250

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.485/Hyd/2021 (Assessment Year : 2019-20) M/s. Jai Balajee Security Services Pvt. Ltd., Hyderabad. PAN AABCJ 5273C Vs. Ass. Commissioner of Income Tax, Circle 1(1), Tirupathi. Appellant Respondent Appellant By : Shri Sashank Dundu, Adv. Respondent By : Shri Rohit Majumdar (D.R.) Date of Hearing : 13.01.2022. Date of Pronouncement : 21.01.2022. O R D E R Per Shri S.S. Godara, J.M. : This assessee’s appeal for Asst. Year 2019-20 arises from the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) Delhi’s order dt.06.10.2021 passed in case No.ITBA/NFAC/S/250/2021-22/1036184823(1) in proceedings under Section 250 of Income Tax Act, 1961 (‘the Act’). Heard both parties. Case file perused. 2. Coming to the sole substantive issue of ESI/PF disallowance of Rs.4,85,47,471/- made in both the lower proceedings, the assessee's and Revenue’s rival stands adopted 2 ITA No.485Hyd/2021 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 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. 4. This assessee’s appeal is allowed in above terms. Order pronounced in the open court on 21 st Jan.,2022. Sd/- Sd/- (L.P. SAHU) (S.S. GODARA) Accountant Member Judicial Member Hyderabad, Dt. 21.01.2022. * Reddy gp 3 ITA No.485Hyd/2021 Copy to : 1. M/s. Jai Balajee Security Services Pvt. Ltd., No.20-3- 1/12A, Sivajyothinagar, Tirupathi, Chittoor. 2. ACIT, Circle 1(1), Tirupathi. 3. CIT(Appeals), National Faceless Appeal Centre (NFAC), Delhi. 4. DR, ITAT, Hyderabad. 5. Guard File. By Order Sr. Pvt. Secretary, ITAT, Hyderabad.