Cigniti Technologies Limited , Hyderabad V. Deputy Commissioner of Income Tax ,Circle-1(1), Hyderabad

ITA 527/Hyd/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 8934 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2019-2020
• Appeal Filed On: 16-12-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A ‘ Bench, Hyderabad (Through Video Conferencing) Before Shri A. Mohan Alankamony, Accountant Member AND Shri S.S. Godara, Judicial Member O R D E R Per S. S. Godara, J.M. This assessee’s appeal for A.Y. 2019-20 arises from the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi’s order dated 09.11.2021 in case No.ITBA/ NFAC/S/250/2021-22/1036793544(1) involving proceedings u/s 250 of the Income Tax Act, 1961 [in short, ‘the Act’]. 2. Coming to the sole substantive issue of ESI/PF disallowance of Rs.52,75,976/- made in both the lower proceedings, the assessee’s and Revenue’s plea(s) 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 ITA No.527/Hyd/2021 Assessment Year: 2019-20 M/s. Cigniti Technologies Limited, Hyderabad – 500082. PAN : AABCC1969J. Vs. The Deputy Commissioner of Income Tax, Circle-1(1), Hyderabad. (Appellant) (Respondent) Assessee by: Shri P. Murali Mohan Rao. Revenue by : Shri Sunil Gowtham. Date of hearing: 10.02.2022 Date of pronouncement: 14.02.2022 ITA No.527/Hyd/2021 2 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. 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 only with prospective effect from 01- 04-2021, 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. This assessee’s appeal is allowed in above terms. Order pronounced in the Open Court on 14 th February, 2022. Sd/- Sd/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (S.S. GODARA) JUDICIAL MEMBER Hyderabad, dated 14 th February, 2022. TYNM/sps ITA No.527/Hyd/2021 3 Copy to: S.No Addresses 1 M/s. Cigniti Technologies Limited, C/o. P. Murali & Co., Chartered Accountants, 6-3-655/2/3, Somajiguda, Hyderabad – 500082. 2 The Deputy Commissioner of Income Tax, Circle 1(1), Hyderabad 3 CIT(Appeals), National Faceless Appeal Centre (NFAC), Delhi. 4 DR, ITAT Hyderabad Benches 5 Guard File By Order