Salzgitter Hyderaulics Private Limited , Hyderabad V. Income Tax Officer, Ward-3(1) , Hyderabad

ITA 644/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3258 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 25-03-2021
• Assessment Year: 2019-2020
• Appeal Filed On: 12-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N SRIKANTH
• Assessee Lawyers: P VINOD
• Section: 43B; 201; 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER ITA NO. 644 /HYD./20 20 ASSESSMENT YEAR: 201 9 - 20 SALZGITTER HYDRAULICS PRIVATE LIMITED VS. ITO, WARD 3 (1) HYDERABAD HYDERABAD [PAN: AABCS8228A ] (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P. VINOD, AR FOR REVENUE : SHRI N. SRIKANTH, D.R. DATE OF HEARING : 2 5 /03/2021 DATE OF PRONOUNCEMENT : 15 /0 6 /2021 O R D E R THIS ASSESSEES APPEAL FOR A.Y. 201 9 - 20 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] - 3 , HYDERABADS ORDER DATED 11.09.2020 PASSED IN CASE NO. 11120/2019 - 20 IN PROCEEDINGS U/S 14 3(1) OF THE INCOME TAX ACT, 1961 [IN SHORT THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. ASSESSEE HAS RAISED THE FOLLOWING SUBSTANTIVE GROUNDS IN ITS APPEAL. 2. THE LD.CIT(A) - 3 ERRED IN SUSTAINING THE ADDITION ON ACCOUNT OF EMPLOYEES CONTRIBUTION TO PF & ESI WITHOUT CONSIDERING THAT THEY WERE PAID BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME. 3 . THE LD.CIT(A) - 3 ERRED IN HOLDING THAT THE AMOUNT PAID BEYOND DUE DATE IS INCOME WITHOUT CONSIDERING THE VARIOUS CASE LAWS BY VARIOUS HIGH COURTS HOLDING THAT THE SAME IS ALLOWABLE. THERE IS NO JUDGEMENT BY JURISDICTIONAL ITA NO. 644 /HYD/ 20 20 AY 20 19 - 20 SALZGITTER HYDRAULICS PVT. LTD. HYD. 2 HIGH COURT ON THIS ISSUE . HOWEVER, THERE ARE VARIOUS OTH ER HIGH COURTS DECISION IN FAVOUR OF ASSESSEE. 2. COMING TO THE SOLE SUBSTANTIVE ISSUE OF ESI/PF DISALLOWANCE OF RS.1,09,343/ - AND RS.3,52,622/ - , THE ASSESSEES AND REVENUES STAND IS 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 STATUTES; RESPECTIVELY. I NOTICE IN THIS FACTUAL BACKDROP THAT THE LEGISLATURE HAS NOT ONLY INCORPORATED NECESSARY AMENDMENTS IN SECTIONS 36(VA) AS WELL AS 43B VIDE FINANCE ACT, 2021 TO THIS EFFECT BUT ALSO THE CBDT HAS I SSUED MEMORANDUM OF EXPLANATION THAT THE SAME APPLIES W.E.F. 1.4.2021 ONLY. IT IS FURTHER NOT AN ISSUE THAT THE FORERGOING LEGISLATIVE AMENDMENT S HA VE PROPOSED EMPLOYE R S CONTRIBUTIONS ; DISALLOWANCES U/S 43B AS AGAINST EMPLOYE E 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 1 . 4 . 2021, I HOLD THAT THE IMPUGNED DISALLOWANCE IS NOT SUSTAINABLE IN VIEW OF ALL THESE LATEST DEVELOPMENTS EVEN IF THE R EVENUES CASE IS SUPPORTED BY THE FOLLOWI NG CASE LAW . (I) CIT VS. MERCHEM LTD, [2015] 378 ITR 443(KER) (II) CIT VS. GUJARAT STATE ROAD TRANSPORT CORPORATION (2014) 366 ITR 170 (GUJ.) (III) CIT VS. SOUTH INDIA CORPORATION LTD. (2000) 242 ITR 114 (KER) (IV.) CIT VS. GTN TEXTILES LTD. (2004) 269 ITR 282 (KER) (V) CIT VS. JAIRAM & SONS [2004] 269 ITR 285 (KER) THE IMPUGNED ESI/PF DISALLOWANCE IS DIRECT ED TO BE DELETED THEREFORE. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 15 TH JUNE, 2021 . SD/ - (S.S. GODARA) JUDICIAL MEMBER DATED: 15 TH JUNE, 2021 GMV ITA NO. 644 /HYD/ 20 20 AY 20 19 - 20 SALZGITTER HYDRAULICS PVT. LTD. HYD. 3 COPY OF ORDER FORWARDED TO: 1. SALZGITTER HYDRAULICS PRIVATE LTD., # 59 - B, CIE, GANDHI NAGAR EXTENSION, BALANAGAR, HYDERABAD 2. ITO, WARD 3 (1), HYDERABAD 3. ACIT, RANGE 3 , HYDERABAD 4. DY.DIT, CPC, BENGALURU 5. CIT(A) - 3 , HYDERABAD. 6 . PR.CIT - 3, HYDERABAD 7. D.R. ITAT HYDERABAD 8 . GUARD FILE