Progressive Enterprises, Nashik V. Assistant Director of Income-Tax, CPC, Bengaluru

ITA 669/PUN/2021

• Counselvise Citation: [2022] 107 COUNSELVISE.COM (IT) 1113 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 12-12-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 143(1)

Judgement Text

आयकर अपीलीय अधिकरण “बी” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.668 & 669/PUN/2021 धििाारण वर्ा / Assessment Years : 2018-19 & 2019-20 Progressive Enterprises, Flat No. 1 & 2, Shree Sadguru Apartment, Near Kale Nagar No. 2, Ajani Nagar, Gangapur Pipeline Road, Anandwalli, Nashik – 422013 PAN : AAKFP0789R .......अपीलार्थी / Appellant बिाम / V/s. ADIT (CPC), Bengaluru ......प्रत्यर्थी / Respondent Assessee by : Shri Sanket Joshi Revenue by : Shri M.G. Jasnani सुिवाई की तारीख / Date of Hearing : 30-08-2022 घोर्णा की तारीख / Date of Pronouncement : 01-09-2022 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : Both these appeals by the assessee against the common order dated 25-06-2021 passed by the National Faceless Appeal Centre, Delhi (‘NFAC’) for assessment years 2018-19 and 2019-20. 2. We find that both these appeals were filed with a delay of 110 days. Upon hearing both the parties, we find that the delay of 110 days is saved 2 ITA Nos.668 & 669/PUN/2021, A.Ys. 2018-19 & 2019-20 by the decision of Hon’ble Supreme Court passed during National Lockdown imposed on account of pandemic Covid-19. Therefore, the delay of 110 days is condoned in both the appeals. 3. The only issue emanates for our consideration in both the appeals is as to whether the CIT(A), NFAC, Delhi justified in confirming the disallowance u/s. 36(1)(va) of the Act on account of employee’s contribution to ESIC/PF in the facts and circumstances of the case. 4. We note that the assessee is a partnership firm engaged in the business of service provider under the name of “M/s. Progressive Enterprises” at Nashik. The CPC, Bangalore vide intimation u/s. 143(1) of the Act made additions of Rs.17,44,225/- and Rs.12,59,043/- for A.Ys. 2018-19 and 2019-20, respectively on account of disallowance u/s. 36(1)(va) towards delayed payment of employee’s contribution to provident fund. The assessee contended that the employee’s contribution towards PF has been paid before the due date of filing of return of income for A.Ys. 2018-19 and 2019-20 but however the CPC, Bangalore as well as CIT(A), NFAC, Delhi did not accept the submissions of assessee and the CIT(A), NFAC held that the assessee would be entitled to deduction only if the contribution to the employee’s welfare fund stood credited on or before the due date under the respective Act. We note that the NFAC by following the amendment made by Finance Act, 2021 to section 36(1)(va) of the Act found the submissions of assessee regarding deposit of employees contribution before the due date of filing return of income not acceptable. We note that the said amendment is applicable from 1 st April, 2021 and since the assessment under consideration is A.Ys.2018-19 and 2019-20, the amendment is not applicable on the facts in hand. We note that the 3 ITA Nos.668 & 669/PUN/2021, A.Ys. 2018-19 & 2019-20 CIT(A) did not dispute the same and it is evident from the impugned order that the assessee paid the employee’s contribution towards provident fund before the due date of filing of Income Tax Return. Therefore, the order of CIT(A) is not justified and it is set aside. Thus, the assessee is entitled for deduction and grounds raised by the assessee are allowed in both the appeals. 5. In the result, both the appeals of assessee are allowed. Order pronounced in the open court on 01 st September, 2022. Sd/- Sd/- (Inturi Rama Rao) (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ददिांक / Dated : 01 st September, 2022. रधव आदेश की प्रधतधलधप अग्रेधर्त / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A), NFAC, Delhi. 4. The CIT concerned. 5. धवभागीय प्रधतधिधि, आयकर अपीलीय अधिकरण, “बी” बेंच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गार्ा फ़ाइल / Guard File. //सत्याधपत प्रधत// True Copy// आदेशािुसार / BY ORDER, वररष्ठ धिजी सधचव / Sr. Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune