Tiger Security and Facility Management Services, Nashik V. Assistant Director of Income-Tax, CPC, Bengaluru

ITA 675/PUN/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 2987 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 13-12-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

आयकर अपीलीय अधिकरण “बी” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.675/PUN/2021 धििाारण वर्ा / Assessment Year : 2019-20 Tiger Security and Facility Management Services, Row House No. 6, Shivanandan, Hari Om Nagar, Artillery Centre Road, Nashik Road, Nashik – 422102 PAN : AAABT3184A ......अपीलार्थी / Appellant बिाम / V/s. ADIT (CPC), Bengaluru ......प्रत्यर्थी / Respondent Assessee by : Shri Naimish S. Dixit & Shri Sanket M. Joshi Revenue by : Shri M.G. Jasnani सुनवाई की तारीख / Date of Hearing : 25-08-2022 घोषणा की तारीख / Date of Pronouncement : 26-08-2022 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 31-08-2021 passed by the National Faceless Appeal Centre, Delhi (‘NFAC’) for assessment year 2019-20. 2. We find that this appeal was filed with a delay of 44 days. Upon hearing both the parties, we find that the delay of 44 days is saved by the 2 ITA No.675/PUN/2021, A.Y. 2019-20 decision of Hon’ble Supreme Court passed during National Lockdown imposed on account of pandemic Covid-19. Therefore, the delay of 44 days is condoned. 3. The assessee raised four grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(A), NFAC, Delhi justified in confirming the disallowance u/s. 36(1)(va) of the Act to an extent of Rs.15,48,880/- 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 company engaged in the business of providing security services. The CPC, Bangalore vide intimation u/s. 143(3) of the Act made addition of Rs.15,48,880/- 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.Y. 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.Y. 2019-20, the amendment is not applicable on the facts in hand. We note that the CIT(A) did not 3 ITA No.675/PUN/2021, A.Y. 2019-20 dispute the same and it is evident from para no. 2 of 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 grounds raised by the assessee are allowed. 5. In the result, the appeal of assessee is allowed. Order pronounced in the open court on 26 th August, 2022. Sd/- Sd/- (R.S. Syal) (S.S. Viswanethra Ravi) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 26 th August, 2022. रदव आदेश की प्रधिधलधप अग्रेधर्ि / 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. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, “बी” बेंच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune