Case Number: ITA 1149/DEL/2021
Appellant: Inder Pratap Singh HUF, New Delhi
Respondent: ACIT, CPC, Bangalore
Assessment Year: 2019-20
Case Filed on: 2021-09-20
Order Type: Final Tribunal Order
Date of Order: 2022-09-14
Pronounced on: 2022-09-14
Case Conclusion: The appeal by Inder Pratap Singh HUF was allowed, and the impugned addition was directed to be deleted by the Ld. AO.
INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH “C”, NEW DELHI
BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER
ITA No. 1149/Del/2021 (Assessment Year: 2019-20)
Appellant: Inder Pratap Singh HUF, 13/14, Windsor Mansion, Janpath, New Delhi
Respondent: ACIT, CPC, Bangalore
PAN: AAAHI1320K
Assessee by: Shri Baldev Raj, CA
Revenue by: Shri Anuj Garg, Sr. DR
Date of Hearing: 14/09/2022
Date of Pronouncement: 14/09/2022
PER ANUBHAV SHARMA, J.M.:
1. The appeal has been preferred by the Assessee against the order dated 23.08.2021 of CIT(A), National Faceless Appeal Centre (NFAC), Delhi, against the order dated 07.07.2020 passed under section 143(1) of the Income Tax Act, 1961 by the DCIT, CPC, Bangalore.
2. The brief facts of the case are that the Assessee, a HUF, filed its return of income on 04.10.2019 declaring a total income of Rs. 1,00,18,620 after claiming set-off of current year business losses amounting to Rs. 47,99,557. An intimation under section 143(1) was issued on 07.07.2020, determining the total income at Rs. 1,02,94,260 after restricting the claim of business loss to Rs. 45,23,911. During the computation of total income, an amount of Rs. 2,75,646 was disallowed under section 36(1)(va) due to the late deposit of employees’ provident fund and ESI contributions. The Assessee challenged this disallowance, but the CIT(A) sustained the addition, relying on various judgments of the jurisdictional High Court.
3. The Assessee argued that the amounts were deposited beyond the due date under the ESI/PF Act but before the due date for filing the return of income under section 139(1). The Assessee referred to the ITAT Delhi Bench’s order in his own case for AY 2018-19 (ITA 1148/Del/2021) and the judgment of the Hon’ble Delhi High Court in CIT Vs. AIMIL Ltd. 321 ITR 508. The Assessee contended that the CIT(A) failed to consider the judgment of the Hon’ble Delhi High Court in PCIT Vs. Pro Interactive Service India Pvt. Ltd. (ITA 98/2018).
4. The Revenue opposed the appeal, relying on the judgment in CIT Vs. Bharat Hotels Ltd. (2019) 410 ITR 417 (Delhi).
5. The Tribunal, considering the matter on record and the contentions raised, observed that the Assessee had deposited the contributions to PF/ESI after the due date under the relevant provisions but within the time allowed under section 43B, i.e., before the due date under section 139(1).
6. The amendments made through the Finance Act, 2021, are applicable from 01.04.2021 and are relevant for the assessment year 2021-22 and subsequent years. Therefore, these amendments are not applicable to the assessment years up to 2020-21.
7. The Tribunal relied on the decisions of various ITAT benches, including the ITAT Kolkata in Harendra Nath Biswas Vs. DCIT (ITA 186/Kol/2021), ITAT Hyderabad in Salzgitter Hydraulics Private Limited Vs. ITO (ITA 644/Hyd/2020), and ITAT Jodhpur in Akbar Mohammad Vs. ACIT, CPC, Bangalore (ITA 108 & 109/Jodh/2021).
8. The Tribunal also referred to the decision of the Hon’ble Delhi High Court in CIT Vs. AIMIL Ltd. and SPL Industries Vs. CIT, which held that employees’ contributions to PF/ESI deposited before the due date for filing the return of income are allowable deductions.
9. In light of the above findings, the Tribunal decided in favor of the Assessee. The appeal was allowed, and the impugned addition was directed to be deleted by the Ld. AO. The consequential effects were to be given to the issues covered by grounds No. 4 and 5.
Order pronounced in the open court on 14/09/2022.
Panel: Shamim Yahya, Accountant Member, and Anubhav Sharma, Judicial Member
Copy forwarded to:
Assistant Registrar
ITAT, New Delhi
Inder Pratap Singh HUF vs. ACIT, CPC, Bangalore: Business Loss Disallowance for AY 2019-20
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