Nichino India Private Limited , Hyderabad V. Deputy Commissioner of Income Tax ,Circle-5(1), Hyderabad

ITA 546/Hyd/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 8677 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2018-2019
• Appeal Filed On: 23-12-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T. SUNIL GOUTAM
• Section: 43B; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘ A ‘ BENCH, HYDERABAD. BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCE) ITA No.546/Hyd/2021 (Assessment Year : 2018-19) M/s. Nichino India Pvt. Ltd., Hyderabad. PAN AAECV 6642E Vs. Dy. Commissioner of Income Tax, Circle 5(1), Hyderabad. Appellant Respondent Appellant By : None. Respondent By : Shri T. Sunil Goutam (D.R.) Date of Hearing : 17.02.2022. Date of Pronouncement : 17.02.2022. O R D E R Per Shri S.S. Godara, J.M. : This assessee’s appeal for Asst. Year 2018-19 arises from the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi’s order dt.28.10.2021 passed in case No.ITBA/NFAC/S/250/2021-22/1036615110(1) in proceedings under Section 143(3) of Income Tax Act, 1961 (‘the Act’). 2 ITA No.546/Hyd/2021 Case called twice. Nobody appears on assessee's behest. We proceed ex-parte against assessee. Heard learned department representative. 2. Coming to the sole substantive issue of ESI/PF disallowance of Rs.4,09,324/- made in both the lower proceedings, assessee's and Revenue’s rival stands adopted in their pleadings 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(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 3 ITA No.546/Hyd/2021 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 17th Feb.,2022. Sd/- Sd/- (A.MOHAN ALANKAMONY) (S.S. GODARA) Accountant Member Judicial Member Hyderabad, Dt.17.02.2022. * Reddy gp Copy to : 1. M/s. Nichino India Pvt. Ltd., A-24/25, Balanagar APIE, Hyderabad- 500 037. 2. DCIT, Circle 5(1), Hyderabad. 3. C I T(Appeals), NFAC, Delhi. 4. DR, ITAT, Hyderabad. 5. Guard File. By Order Sr. Pvt. Secretary, ITAT, Hyderabad.