Case Law Details
Jagmohan Singh Vs DCIT (ITAT Chandigarh)
In the instant case, it is not in dispute that employees’ contribution to ESI and PF collected by the assessee from its employees had been deposited well before the due date of filing of return of income u/s 139(1) of the Act. We find that the issue is squarely covered by the decisions of the Hon’ble Rajasthan High Court, Hon’ble Himachal Pradesh High Court as well as Hon’ble Punjab & Haryana High Court. We further note that though the Id. CIT(A) has not disputed the various decisions of Hon’ble High Courts including the decision of the jurisdictional Himachal Pradesh High Court but has referred to the amendment brought in by the Finance Act, 2021.
It is a consistent position across various Benches of the Tribunal including Chandigarh Benches that the amendment which has been brought in by the Finance Act, 2021 shall apply w.e.f. assessment year 2021-22 and subsequent assessment years and the impugned assessment year being assessment year 2018-19, the said amendment cannot be applied in the instant case. Therefore, considering the entirety of facts and circumstances of the case and following the decisions of various High Courts as well as Coordinate Benches of the Tribunal referred above, the addition made by way of adjustment while processing the return of income u/s 143(1) of the Act, amounting to Rs.11,99,710/- so made by the CPC towards the deposit of employees’ contribution towards ESI and PF paid before the due date of filing of the return of income u/s 139(1) of the Act, is hereby directed to be deleted.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
These are two appeals filed by the assessee against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre Delhi [in short the ‘Ld. CIT(A), NFAC’] Delhi, passed u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) dated 06.07.2021 for assessment year 2018-19 and dated 28.07.2021 for assessment year 2019-20 respectively.
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