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TMI Blog2021 (10) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... DR ORDER This appeal filed by the Assessee is directed against the Order dated 07.09.2020 of the Ld. CIT(A)-10, New Delhi, relating to the A.Y. 2018-2019. 2. Although a number of grounds have been raised by the assessee, however, these all relate to the order of the Ld. CIT(A) in confirming the disallowance of ₹ 3,26,330/- made by the A.O, CPC passed order under section 143(1)/154 in respect of delayed payment of employees contribution to PF ESI. 3. Facts of the case in brief are that the assessee is an individual and deals in the business of export of readymade garments and related job works for garment export manufacturer. He filed his return of income on 31.10.2018 declaring total income of ₹ 20,17,920/-. The CPC processed the return vide intimation under section 143(1) dated 02.05.2019 and computed the income at ₹ 23,44,250/-, wherein adjustment for a sum of ₹ 3,26,330/- was made on account of delayed payment of employees contribution to PF ESI. The assessee filed rectification application under section 154 stating that contribution to the PF ESI has already been paid into the relevant fund account well before the due date speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y mentions that Sections 2 to 88 shall come into force on the First Day of April, 2021. However, as per Finance Act, 2021, Section 9 relates to amendment to Section 36 and Section 11 relates to amendment to Section 43B. Referring to various decisions, he submitted that after considering the various decisions relied on by the Ld. CIT-DR, the Coordinate Benches of the Tribunal are consistently taking the view that employees contribution to PF ESI, if paid before the due date of filing of the income tax return under section 139(1), is an allowable deduction and no disallowance can be made. 1. Order of the ITAT, Hyderabad in the case of Crescent Roadways Pvt. Ltd., vs., DCIT vide ITA.No.1952/ Hyd/2018 dated 01.07.2021. 2. Order of the ITAT, Delhi in the case of DCIT vs., Dee Development Engineers Ltd., vide ITA.No.4959/Del./2016 dated 08.04.2021. 3. Order of the ITAT, Delhi in the case of DCIT vs., Planman HR (P) Ltd., vide ITA.No.5152/ Del./2017 dated 15.07.2021. 4. Order of the ITAT, Chennai in the case of DCIT vs., Talenpro India HR Pvt. Ltd., vide ITA.No.265/ Chennai/2019 dated 09.04.2021. 5. Order of the ITAT, Agra in the case of Mahadev Cold Storage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y invoking the provisions of Section 143(1)(a)(iv) of the I.T. Act, 1961. I find the rectification application filed by the assessee under section 154 was dismissed by the DCIT, CPC and on further appeal, the Ld. CIT(A) dismissed the appeal filed by the assessee. It is the submission of the Learned Counsel for the Assessee that payment for employees contribution towards PF ESI have been made before the due date of filing of the income tax return under section 139(1), therefore, in view of the consistent decisions of the Coordinate Benches of the Tribunal, the same does not call for any disallowance. It is also his submission that after the decision of the Hon ble Delhi High Court in the case of CIT vs., M/s. Bharat Hotels Ltd., (supra), the Hon ble Delhi High Court in the case of PCIT vs., Pro Interactive Service (India) Pvt. Ltd., vide ITA.No.983/2018 order dated 10.09.2018 has held that no disallowance is called for where the assessee had paid the employees contribution to PF ESI before the due date of furnishing of return of income under section 139(1) of the I.T. Act, 1961. 7.1. I find the Hon ble Delhi High Court in the case of Pro Interaction Service (India) Pvt. Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0) 321 ITR 508 (Del.). But the Ld. AR relied upon the decision of the Hon ble Delhi High Court in case of Pr. CIT vs. Pro Interactive Service (India) Pvt. Ltd. ITA No. 983/2018 pronounced on 10.09.2018 wherein the Hon ble High Court decided the issue in favour of the assessee relying upon the judgment of AIMIL Ltd. (supra). The Hon ble Delhi High Court held that the legislative intent was/is to ensure that the amount paid is allowed as 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(24)(x) of the Act. It is settled law that when two judgments are available giving different views then the judgment which is in favour of the assessee shall apply as held in case of Vegetable Products Ltd. 82 ITR 192 by the Hon ble Supreme Court. Hence, in light of the latest decision in case of Pro Interactive Service (India) Pvt. Ltd., the issue is covered in favour of the assessee. Hence, Ground No. 1 is dismissed. 7. Further with respect to the argument of the learned departmental r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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