Jaguar Security Services Pvt. Ltd., Ghaziabad V. Circle-13(1), Delhi

ITA 737/DEL/2022

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 1859 (ITAT-DELHI)
• Duration Of Justice: 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2018-2019
• Appeal Filed On: 19-04-2022

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH ‘G’, NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER Sr. Nos ITA No(s) Asst. Year(s) Appeal(s) by Appellant vs. Respondent Assessee By Revenue By Appellant Respondent 1. 324/Del/2022 2019-20 Manifold E-Connect Limited, EF-R/8, 3 rd Floor, Inderpuri, New Delhi – 110012. PAN : AABCV7718C ITO, New Delhi --None-- Shri Sanjay Kumar Nargas, Sr. DR 2. 342/Del/2022 2018-19 Ankit Aggarwal, 503, FIE, Patparganj, Delhi-110092. PAN-ADQPA8599K ACIT, Central Circle-18, Delhi --None-- --do— 3. 343/Del/2022 2019-20 --do-- --do-- --None-- --do-- 4. 351/Del/2022 2018-19 Om Innovation Call Services Pvt.Ltd., C-7, Community Centre, Janak Puri, Delhi-110058. PAN-AAACO7862P CIT(A), Circle-19(1), NFAC, Delhi Shri Anil Chopra, CA --do-- 5. 352/Del/2022 2019-20 --do-- --do-- --do-- --do-- 6. 532/Del/2022 2019-20 Deepali Design & Exhibits Pvt.Ltd., GN-06, Shivaji Enclave, Rajouri Garden, New Delhi-110027 PAN : AABCD5680K AO, Central Circle-17, Delhi Shri Amit, AR --do-- 7. 652/Del/2022 2018-19 Rakesh Kumar Gupta, C-111, ANtriksh Apartment, Sector-14, Rohini, New Delhi– 110085. PAN-AAKPG4091R AO, Ward-38(3), Delhi Shri Suresh K.Gupta, CA --do-- 8. 654/Del/2022 2018-19 Acclaim Industries, 405, Savera Apartments, Sector- 13, Rohini, New Delhi-110085. PAN-AAVFA8829L ADIT, Circle-36(1), Delhi --do-- --do-- 9. 728/Del/2022 2019-20 Fabcare Garments & Textile machinery Pvt.Ltd, 81-A, GH-10, Sundar Apartment, Outer Ring Road, Paschim Vihar, New Delhi-110087. PAN : AAACF7934R CPC Bangalore -None- --do-- 10. 735/Del/2022 2018-19 S.S.R.Retail, Shop No.21, Sarojini Nagar Market, New Delhi-110023. ADIT, CPC Bengaluru Shri Yashu Goel, CA --do-- 2 PAN : ABYFS1420R 11. 736/Del/2022 2018-19 Stelatoes Shoes & Accessories Pvt.Ltd., A-42, Gate no.1, Mayapuri Industrial Area, Phase-2, New Delhi-110064. PAN : AAMCS4060R DCIT, CPC Bengaluru Shri Madhava Kapoor, Adv. --do-- 12. 737/Del/2022 2018-19 Jaguar Security Services Pvt.Ltd., C/o-B.K.Kapur & Co., Chartered Accountants, 17 Navyug Market, Ghaziabad, Uttar Pradesh-201001. PAN : AAACJ3711E CPC Banglore --do-- --do-- 13. 738/Del/2022 2018-19 M.N. Automobile Pvt.Ltd., C/o-B.K.Kapur & Co., CAs, 17 Navyug Market, Ghaziabad, Uttar Pradesh-201001. PAN : AABCS8165N CIT(A), NFAC, New Delhi --do-- --do-- 14. 754/Del/2022 2019-20 Canary Agro Chemicals Pvt.Ltd., 7, Shopping Centre, Karampura, New Delhi-110015. PAN : AAACD0498C CIT(A), Circle-5(2), Delhi Shri Ajay Kumar Aggarwal, AR. --do-- 15. 770/Del/2022 2018-19 Brij Polymers Pvt.Ltd., A-62, Saraswati Vihar, Pitampura, Delhi-110034. PAN : AAACB3029K DCIT, CPC, Bengaluru Shri Yashu Goel, Adv. --do-- 16. 771/Del/2022 2019-20 --do-- ACIT, CPC, Bengaluru --do-- --do-- 17. 772/Del/2022 2018-19 B.S. Enterprises, B-273, Mangolpuri Industrial Area, Delhi-110083. PAN : AAGFB9940G DCIT, CPC, Bengaluru --do-- --do-- 18. 773/Del/2022 2017-18 VE Commercial Vehicles Ltd., 3 rd Floor, Select City Walk, A-3, District Centre, Saket, New Delhi-110017. PAN-AABCE9378F DCIT, CPC, Bengaluru Ms. Manisha Sharma, Adv. --do-- 19. 768/Del/2022 2018-19 --do-- ADIT, CPC, Bengaluru --do-- --do-- 20. 780/Del/2022 2019-20 A.K.Automatics, Hissar Road, Rohtak, Haryana-124001. PAN-AABFA4065A DCIT, CPC, Bangalore --None-- --do-- 21. 818/Del/2022 2018-19 TRIO Security & Intelligence Pvt.Ltd., I-36, Lajpat Nagar-IST, New Delhi-110024. PAN : AAACT5352R AO, Ward-25(4), Delhi --None-- --do-- 3 22. 819/Del/2022 2018-19 --do-- AO, Ward-25(4), Delhi --None-- --do-- 23. 837/Del/2022 2018-19 Gaurav International, B-34, Mayapuri Industrial Area, Phase-I, Delhi-110064. PAN : AAAFG5920D ADIT, CPC, Bangalore Shri K V S R Krishna, CA --do-- 24. 847/Del/2022 2019-20 Kamal Dixit, 240, VPO-Bhainsra Wali, Ballabgarh, Faridabad, Haryana-121004. PAN-ASTPD3725G CIT(A), NFAC, Delhi --None-- --do-- 25. 853/Del/2022 2019-20 Saroj Gautam, House No.326/G.F., Sector-9A, Gurgaon, Haryana-122001. PAN : AHYPG2373B CIT(A), Gurgaon Shri R.K.Gour, CA --do-- 26. 850/Del/2022 2019-20 RIshi Prakash, C/o-Umang Sahai Aggarwal, Adv., 505, Maitri Apartment, Opp. Metro Pillar 411, Sector-9, Rohini, Delhi-110085. PAN-ADZPS3716M CIT(A), Rohtak Shri U.S.Aggarwal, Adv. --do-- 27. 858/Del/2022 2019-20 Supple Tek Foods, M/s Supple Tek Foods, Kurak Road, Taraori Nilokheri, Karnal, Haryana- 132117. PAN : ACFFS6407G DCIT, Karnal Shri Nimish Nagpal, CA --do-- 28. 1290/Del/2021 2019-20 Chetan Bhandari, 4/20, W E A, Karol Bagh, New Delhi-110005. PAN : AADPB3548H ITD, CPC, Bengaluru Shri Bishnu Bhaswan Gupta, Adv. Shri H.K. Chaudhary, CIT DR 29. 1457/Del/2021 2018-19 Krishan Pal Sharma, F-1601, GPL Eden Heights Tower-F, Darbar Pur Road, Sec- 70, Near Badshah Pur, Gurgaon-122001. PAN : ADLPS4970R DCIT, CPC, New Delhi --do-- --do-- 30. 10/Del/2022 2018-19 Trans Metalite India Ltd., 4417/7, Ansari Road, Daryaganj, Delhi-110002. PAN-AAACT0351N DCIT, CPC, Bangalore Shri Bishnu Khandelwal, Adv. --do-- 31. 11/Del/2022 2019-20 --do-- --do-- --do-- --do-- 32. 31/Del/2022 2018-19 Universal Engineering Corporation, Sabri Mill Compound, Ambala Road, Saharanpur, U.P.-247001. PAN-AAAFU2219D CIT(A), New Delhi --None-- Shri Sanjay Nargas, Sr.DR 33. 66/Del/2022 2018-19 Ahluwalia Contracts India Ltd., A-177, ACIT, CC-31, Shri Vishal Shekhar, CA Shri H.K. Chaudhary, 4 Okhla Industrial Area, Phase-I, Delhi-110020. PAN-AABCA4304K New Delhi. CIT DR 34. 70/Del/2022 2017-18 Shri Naresh Chandila, H.No.1375/1, Julahan Basti Nangal Raya, Delhi-110016. PAN-AIOPC1991N CPC, Bengaluru/ ITO, Ward- 49(4), Delhi --None-- Shri Sanjay Nargas, Sr.DR 35. 71/Del/2022 2019-20 Javi Systems India Pvt.Ltd., H.No.AI/45, Sushant Lok-2, Sector-55, Gurgaon, Haryana-122011. PAN-AABCJ7817L ADIT, CPC, Bangalore --None-- --do-- 36. 72/Del/2022 2018-19 Overdrive Electronics Pvt.Ltd., C-121, Hosiery Complex, Phase-2, Gautam Budh Nagar, U.P-201305. PAN-AAECM3076D DCIT, CPC, Bengaluru Shri M.K. Aggarwal, AR Shri H.K. Chaudhary, CIT DR 37. 86/Del/2022 2018-19 Kunstocom India Ltd., B-27, Defence Colony, Delhi-110024. PAN-AAACK0356L DCIT, Circle-13(1), Delhi. --None-- Shri Sanjay Nargas, Sr.DR 38. 95/Del/2022 2018-19 Cosmos Industries Ltd., 202, Thapar Arcade, 47, Kalu Sarai Hauz Khas, New Delhi- 110016. PAN-AAACC6682R CIT Appeal, NFAC, Delhi --None-- --do-- 39. 107/Del/2022 2019-20 Virtuous India Pvt.Ltd., O-92, Bank Street, Munirika, South West Delhi, Delhi-110067. PAN-AADCV2741D Asst.DIT, CPC, Bengaluru Ms. Ananya Kapoor, Adv. & Shri Amarbir Singh, Adv. Shri H.K. Chaudhary, CIT DR 40. 128/Del/2022 2018-19 Kaizen Metel Forming Pvt.Ltd., 40, Kirti Nagar, Delhi-110015. PAN-AACCK1286B CPC, Bengaluru --None-- Shri Sanjay Nargas, Sr.DR 41. 172/Del/2022 2019-20 Sunil Kumar, F-39, 1 st Floor, Raheja Square, Sector-2, Imt Manesar, Gurgaon, Haryana-122001. PAN-AMYPK5336R CIT(A), NFAC, Delhi Shri Manoj Garg, CA Shri H.K. Chaudhary, CIT DR 42. 234/Del/2022 2015-16 Global Canesugar Services Pvt.Ltd., TDI Centre, Plot No.7, Jasola, Delhi. PAN-AAFCG2309A DCIT, Circle-10(1), Delhi --None-- Shri Sanjay Nargas, Sr.DR 43. 235/Del/2022 2018-19 Indigo Infra Projects Pvt.Ltd., WZ-13, D-2, 1 st Floor, Opposite A-2, Gurudwara Asaltpur, Janakpuri, Delhi-110058. PAN-AACCI8551P CIT(A), Delhi Shri Tarun Kandari, CA & Ms. Renu Suri, CA Shri H.K. Chaudhary, CIT DR 44. 241/Del/2022 2018-19 Cosmos Systems, C-DCIT, --None-- Shri Sanjay 5 128/2, Mohamadpur Bhikajicama Place, Delhi-110066. PAN-AAJFC3954E CPC, Bangalore Nargas, Sr.DR 45. 248/Del/2022 2019-20 Professional Catering Service P.Ltd., 3925 28 203, Padam Chambers, Padam Singh Road, Karol Bagh, Delhi-110005 PAN-AAACP7697P DCIT, CPC, Bangalore --None-- --do-- 46. 250/Del/2022 2017-18 Superior Manpower Services Pvt.Ltd., DSM 609-610, 6 th Floor, DLF Towers, Shivaji Marg, Najafgarh, Moti Nagar, Delhi-110015 PAN-AAJCS6616E CPC, Bengaluru Ms. Ananya Kapoor, Adv. & Shri Amarbir Singh, Adv. Shri H.K. Chaudhary, CIT DR 47. 251/Del/2022 2019-20 --do-- --do-- --do-- --do-- 48. 256/Del/2022 2018-19 Everest Beverages & Food Industries, D-21, Industrial Estate, Partapur, Meerut, U.P.-250002. PAN-AAAFE2833M DCIT, CPC --None-- Shri Sanjay Nargas, Sr.DR 49. 307/Del/2022 2018-19 Krishan, K K Plaza, 3 rd Floor, Sheila Bye Pass Sonipat Road, Rohtak, Haryana-124001. PAN-APSPK5145H ADIT, CPC, Bangalore --None-- --do-- 50. 308/Del/2022 2019-20 Ind Sanitation Solutions Pvt.Ltd., 43/44, Second Floor, Maa Gayatri Complex, Rohtak, Haryana-124001. PAN-AAECI2759K ADCT, CPC, Bangalore --None-- --do-- 51. 312/Del/2022 2018-19 Rohde & Schwarz India Pvt.Ltd., A-27, 1 st Floor, Mohan Corporative Industrial Estate, Mohan Corporative, Mathura Road, New Delhi- 110044. PAN-AAACR3267P DCIT, CPC, Bangalore Shri Vishal Kalra, Adv. & Shri Ankit Sahni, Adv. --do-- 52. 320/Del/2022 2018-19 Harjit Singh Boparai, C Flat No.736, Sector-29, Noida, Gautam Budh Nagar, Uttar Pradesh-201301. PAN-AEZPB8775L ACIT, CPC, Bangaluru Shri Sumit Lalchandani, Adv. & Shri Abhinav Gaur, Adv. --do-- Date of hearing: 19.05.2022 Date of Pronouncement: 19.05.2022 6 ORDER PER BENCH : The present appeals are filed by the above mentioned assessees feeling aggrieved by the orders passed by appellate authority for various assessment years mentioned hereinabove. 2. Since the issue in all the appeals is common and is related to disallowance of employee’s contribution of PF/ESI on account of delay in deposits as per the respective Acts. Therefore, we clubbed all of them together for the sake of brevity and convenience and disposing the same by way of this consolidated order. However, we are taking ITA No.324/Del/2022 [Assessment Year -2019-20] as a lead case wherein the assessee has raised the following grounds: 1. “That the Ld. CIT(A) has not afforded a proper opportunity of being heard in so far as the relying on certain judgments not confronted to the assessee before rejecting the contentions in the Written Submissions filed, thereby violating the principles of natural justice. 2. That the Intimation order by CPC u/s 143(1) dated 28/07/2020 is bad in law on the facts of the case and that Ld. Commissioner of Income Tax (Appeals) has erred in sustaining the addition made in the Intimation. 7 3. That the CIT(A) has grossly erred in sustaining the addition of Rs. 6,75,861/- made in the Intimation order by CPC, u/s 143(1), of the ESI/PF of Employees Contribution paid before the due date of filing the return of income. That the addition so made in the Intimation needs to be deleted. 4. That the Ld. CIT(A) has erred in not appreciating that the CPC has no power to make such adjustment u/s 143(1) when no such disallowance has been reported by the Tax Auditor in Clause 20(b) of the Form 3CD. Hence the illegal disallowance made by CPC of Rs.6,75,861/- needs to be deleted. 5. That the assessee craves indulgence to add, amend, alter, modify or take additional grounds of appeal.” 3. Similar grounds with different amounts and assessment years have been raised in other appeals but however, the sum & substance and the issues involved in all the appeals are identical. 4. Before us, at the outset, Learned AR submitted that the sole grievance of the assessee is confirming the additions on account of delay in deposit of employee’s contribution towards provident fund and ESI fund. 5. Before us, Learned AR submitted that additions have been made in the intimation issued by CPC, Bangalore u/s 36(1)(va) of the Income Tax Act, 1961 (“the Act”) for the reason that the 8 contribution received towards PF/ESIC by the assessee from its employees was not deposited before the due date. He submitted that though there has been delay in deposit of PF/ESIC Contributions but all the contributions received by the assessee from its employees, have been deposited with the appropriate authorities before the filing of return of income by the assessee. He therefore, submitted that since the amounts have been deposited before the filing of return of income, no disallowance is called for and for aforesaid proposition, he relied on the decision of Azamgarh Steel & Power vs. CPC in ITA No.1626/Del/2020 dated 31.05.2021 and CIT vs. AIMIL Ltd. [2010] 188 Taxman 265 (Delhi) and various other decisions. 6. Learned DR on the other hand supported the order of lower authorities and also placed reliance on the decision of Delhi Tribunal in the case of Vedvan Consultants Pvt. Ltd. vs DCIT in ITA No.1312/Del/2020 order dated 26.08.2021. He also submitted that the amendment brought out by Finance Act 2021 would be applicable to the present case as by the amendment, it has been clarified that provisions of Section 43B of the Act shall not apply and shall be deemed never to have been applied to a sum 9 received by the assessee from any of his employees to which the provisions of sub clause (x) of Clause (24) of Section 2 applies. 7. We have heard the rival submissions and perused the material available on record. The issue is no more res-integra. The issue has already been settled in favour of the assessee by various judicial pronouncements by the Tribunal. The Hon’ble Jurisdictional High Court of Delhi in the case of PCIT vs Pro Interactive Service (India) Pvt.Ltd. in ITA No.983/2018 [Del.] order dated 10.09.2018 held as under:- “In view of the judgement of the Division Bench of Delhi High Court in Commissioner of Income Tax versus AIMIL Limited, (2010) 321 ITR 508 (Del.) the issue is covered against the Revenue and, therefore, no substantial question of law arises for consideration in this appeal. The legislative intent was/is to ensure that the amount paid is allowed as an expenditure only when payment is actually made. We do not think that the legislative intent and objective is to treat belated payment of Employee’s Provident Fund (EPD) and Employee’s State Insurance Scheme (ESI) as deemed income of the employer under section 2(23)(x) of the Act.” 8. As far as reliance by Ld. DR on the amendment brought out by Finance Act, 2021 is concerned, “notes on clauses” to the 10 Finance Bill 2021 clearly states that the amendment will take effect from 01 st April 2021 and will prospectively apply in relation to the assessment year 2021-22 and subsequent assessment year. In such a situation, we are of the view that the amendment brought out by Finance Act, 2021 does not apply to the assessment year under consideration. 9. Before us, the Revenue has not placed any material on record to demonstrate that the aforesaid order cited hereinabove has been overruled/stayed/set aside by higher judicial forum. In view of the aforesaid facts, we are of the view that the AO was not justified in denying the deduction claimed by the assessee on account of late deposit of PF/ESI/EPF, albeit before filing the return of income. Admittedly, in all the above-stated matters, the Revenue had not contended that the assessee has deposited the contribution after the filing of the return of income. 10. Apropos to ITA No.754/Del/2022 concerning Assessment Year 2019-20 in the case of Canary Agro Chemicals Pvt.Ltd., appearing at Serial No.14 captioned above, it was pointed out that the belated payment of employee’s contribution towards PF & ESI in the proceedings having regard to the respective Acts, have already been disallowed by the assessee while computing the taxable income and thus such disallowance again made on account 11 of delay by the Revenue has resulted in double disallowance. It was further contended that this submission is without prejudice to the legal position enunciated by the Hon’ble High Court in the case of PCIT vs Pro Interactive Service (India) Pvt.Ltd. (supra). 11. We have proceeded to conclude the issue of allowability of expenses attributable to employee provident fund and employee state insurance scheme on the assurance that the employee’s contributions towards PF & ESI have been deposited before the due date of filing of return of income. However, the Revenue shall be at liberty to seek restoration of the appeal where it is found as a matter of fact that the assessee has failed to deposit the employee’s contribution before the due date of filing of return of income stipulated u/s 139(1) of the Act in accordance with law. In view of the above and respectfully following the decision of the Hon’ble Jurisdictional High Court of Delhi cited hereinabove, we allow the appeals filed by the captioned assessees. 12. In the result, all captioned appeals of the respective assessees are allowed. Order pronounced in the open court on 19.05.2022. Sd/- Sd/- (PRADIP KUMAR KEDIA) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:-19.05.2022*Amit Kumar* 12 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI