Shrishti Electricals Private Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-3(1), Hyderabad

ITA 578/Hyd/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5656 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2018-2019
• Appeal Filed On: 22-10-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A VENKATA RAO
• Assessee Lawyers: RAUNAK SINGHVI
• Section: 43B; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO.578/HYD/2020 ASSESSMENT YEAR: 2018-19 SHRISHTI ELECTRICALS PRIVATE LIMITED, HYDERABAD [PAN: AANCS3617H] VS DCIT, CIRCLE-3(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI RAUNAK SINGHVI, AR FOR REVENUE : SHRI A.VENKATA RAO, DR DATE OF HEARING : 16-08-2021 DATE OF PRONOUNCEMENT : 20-09-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2018-19 ARISES FROM TH E CIT(A)-3, HYDERABADS ORDER DATED 04-09-2020 PASSED IN CASE NO.10231 / 2019-20 / B3 / CIT(A)-3, INVOLVING PROCE EDINGS U/S. 143(1) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. 2. COMING TO THE SOLE SUBSTANTIVE ISSUE OF ESI/PF DISALLOWANCE OF RS.7,81,469/- MADE IN BOTH THE LOWER PROCEEDINGS, THE ASSESSEES AND REVENUES PLEA BEFORE US IS THAT THE SAME HAS BEEN PAID BEFORE THE DUE DATE OF FILIN G SEC.139(1) RETURN AND AFTER THE DUE DATE PRESCRIBED IN THE CORRESPONDING STATUTES; RESPECTIVELY. WE NOTICE IN TH IS ITA NO. 578/HYD/2020 :- 2 -: FACTUAL BACKDROP THAT THE LEGISLATURE HAS NOT ONLY INCORP ORATED NECESSARY AMENDMENT IN SECTIONS 36(1)(VA) AS WELL A S U/S. 43B VIDE FINANCE ACT, 2021 TO THIS EFFECT BUT ALSO THE C BDT HAS ISSUED MEMORANDUM OF EXPLANATION THAT THE SAME APP LIES W.E.F. 01-04-2021 ONLY. IT IS FURTHER NOT AN ISSUE THAT THE FOREGOING LEGISLATIVE AMENDMENTS HAVE PROPOSED EMPLO YERS CONTRIBUTION/DISALLOWANCE U/S.43B AS AGAINST EMPLOYEE S CONTRIBUTION U/S.36 (VA) OF THE ACT; RESPECTIVELY. HOWEV ER, KEEPING IN MIND THE FACT THAT THE SAME HAS BEEN CLARIFIE D TO BE APPLICABLE ONLY WITH PROSPECTIVE EFFECT FROM 01-04-20 21 ONLY. WE HOLD THAT THE IMPUGNED DISALLOWANCE IS NOT SUSTAINABL E IN VIEW OF ALL THESE LATEST DEVELOPMENTS. THE IMPUGNED ES I/PF DISALLOWANCE IS DELETED THEREFORE. 3. THIS ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH SEPTEMBER, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 20-09-2021 TNMM ITA NO. 578/HYD/2020 :- 3 -: COPY TO : 1.SHRISHTI ELECTRICALS PRIVATE LIMITED, LUHARUKA AN D ASSOCIATES, 5-4-187/3&4, 2 ND FLOOR, SOHAM MANSION, M.G.ROAD, RANIGUNJ, SECUNDERABAD. 2.DCIT, CIRCLE-3(1), HYDERABAD. 3.CIT(APPEALS)-3, HYDERABAD. 4.PR.CIT-3, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.