Case Law Details
Abhimanyu Sharma Vs ITO (ITAT Jaipur)
In the instant case, admittedly and undisputedly, the employees’ contribution to ESI and PF collected by the assessee from its employees have been deposited well before the due date of filing of return of income u/s 139(1) of the Act and therefore, the legal proposition laid down in aforesaid decisions squarely applies in the instant case. Further, the ld D/R has referred to the explanation to section 36(1)(va) and section 43B by the Finance Act, 2021 and has also referred to the rationale of the amendment as explained by the Memorandum in the Finance Bill, 2021, however, we find that there are express wordings in the said memorandum which says these amendments will take effect from 1st April, 2021 and will accordingly apply to assessment year 2021-22 and subsequent assessment years’. In the instant case, the impugned assessment year is assessment year 2018-19 and therefore, the said amended provisions cannot be applied in the instant case.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
This is an appeal filed by the assessee against the order of ld. CIT(A), Delhi (NFAC) dated 25.08.2021 challenging the confirmation of additions in respect of employees contribution towards ESI/PF pertaining to assessment year 2018-19.
2. Briefly the facts of the case are that the assessee filed his return of income on 22.10.2018 declaring total income of Rs. 22,06,880/- which was processed U/s 143(1) and in terms of intimation dated 09.08.2019 issued by CPC, it made disallowance of Rs. 22,55,649/- towards employee’s contribution towards ESI and PF against which the assessee moved in appeal before the ld CIT(A). During the course of appellate proceedings, the assessee brought to the notice of ld CIT(A) that a rectification order u/s 154 has since been passed by the ITO Ward 2(2), Kota and there is no more any disputed income and hence, he wishes to withdrawn the appeal. The ld CIT(A), NFAC, having taken note of the rectification order passed by the AO u/s 154, however, proceeded ahead and has confirmed the disallowance made U/s 143(1) on account of assessee’s failure to pay the employee’s contribution of PF/ESI within the prescribed due dates as per Section 36(1)(va) of the Act. Against the said order, the assessee is in appeal before us.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
