Case Number: ITA 1297/DEL/2021
Appellant: Ram Dhan Yadav, Gurgaon
Respondent: ITO Ward-3(1), Gurgaon
Assessment Year: 2018-19
Case Filed On: 2021-10-04
Order Type: Final Tribunal Order
Date of Order: 2022-05-24
Pronounced On: 2022-05-24
This case revolves around the addition of Rs.54,73,401 assessed by the IT department due to the late deposit of employees’ contributions towards PF & ESIC by Ram Dhan Yadav, Gurgaon, for the assessment year 2018-19. The additions were made on the grounds that the deposits were made after the due dates prescribed in respective funds but before the due date of filing of return of income under Section 139(1) of the Income Tax Act.
The appellant contested that the additions were incorrectly sustained by the Commissioner of Income Tax (Appeals) based on the retrospective application of certain amendments introduced by the Finance Act 2021, which he argued were actually prospective. The Tribunal reviewed the legislative amendments and preceding judicial decisions, noting that the issue of whether these amendments were retrospective or prospective is debatable. Ultimately, the Tribunal sided with the appellant, instructing the deletion of the addition as it was made on a debatable issue, which is outside the scope of adjustments permissible under Section 143(1) of the Income Tax Act.
The Tribunal’s decision emphasizes the principle that tax adjustments on debatable and controversial issues are beyond the scope of summary adjustments under Section 143(1). This case underscores the importance of adhering to statutory due dates for depositing employees’ contributions to avoid potential disputes. The ruling also sheds light on the interpretation challenges related to legislative amendments and their application.
Order pronounced in the open court on 24/05/2022.
Judicial Member: Shaktijit Dey
Accountant Member: Anadee Nath Misshra
Order Dated: 24/05/2022
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