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    Salzgittar Hydraulics ITAT Order

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    Rajesh Mahesh Bohra
    This document is an order from the Income Tax Appellate Tribunal regarding an appeal by Salzgitter Hydraulics Private Limited for assessment year 2019-20 against an order from the Commissioner of Income Tax (Appeals). The appeal concerns disallowances made for employee contributions to PF and ESI that were paid before the due date for filing tax returns but after the due dates prescribed in the relevant statutes. While the revenue argued this supported the disallowance, the tribunal noted recent legislative amendments and CBDT guidance clarified the changes only apply prospectively from April 1, 2021. Therefore, the tribunal allowed the appeal and directed the disallowances be deleted.

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    Salzgittar Hydraulics ITAT Order

    Uploaded by

    Rajesh Mahesh Bohra
    43 views3 pages
    This document is an order from the Income Tax Appellate Tribunal regarding an appeal by Salzgitter Hydraulics Private Limited for assessment year 2019-20 against an order from the Commissioner of Income Tax (Appeals). The appeal concerns disallowances made for employee contributions to PF and ESI that were paid before the due date for filing tax returns but after the due dates prescribed in the relevant statutes. While the revenue argued this supported the disallowance, the tribunal noted recent legislative amendments and CBDT guidance clarified the changes only apply prospectively from April 1, 2021. Therefore, the tribunal allowed the appeal and directed the disallowances be deleted.

    Original Description:

    43B allowability vis a vis section 36(v)(a) amendment

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    salzgittar hydraulics ITAT order

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    This document is an order from the Income Tax Appellate Tribunal regarding an appeal by Salzgitter Hydraulics Private Limited for assessment year 2019-20 against an order from the Commissioner of Income Tax (Appeals). The appeal concerns disallowances made for employee contributions to PF and ESI that were paid before the due date for filing tax returns but after the due dates prescribed in the relevant statutes. While the revenue argued this supported the disallowance, the tribunal noted recent legislative amendments and CBDT guidance clarified the changes only apply prospectively from April 1, 2021. Therefore, the tribunal allowed the appeal and directed the disallowances be deleted.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    43 views3 pages

    Salzgittar Hydraulics ITAT Order

    Uploaded by

    Rajesh Mahesh Bohra
    This document is an order from the Income Tax Appellate Tribunal regarding an appeal by Salzgitter Hydraulics Private Limited for assessment year 2019-20 against an order from the Commissioner of Income Tax (Appeals). The appeal concerns disallowances made for employee contributions to PF and ESI that were paid before the due date for filing tax returns but after the due dates prescribed in the relevant statutes. While the revenue argued this supported the disallowance, the tribunal noted recent legislative amendments and CBDT guidance clarified the changes only apply prospectively from April 1, 2021. Therefore, the tribunal allowed the appeal and directed the disallowances be deleted.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    IN THE INCOME TAX APPELLATE TRIBUNAL

    HYDERABAD ‘SMC’ BENCH : Hyderabad

    (Through Video Conference)

    BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER

    ITA No. 644/Hyd./2020


    Assessment Year: 2019-20

    Salzgitter Hydraulics Private Limited vs. ITO, Ward 3(1)


    Hyderabad Hyderabad

    [PAN: AABCS8228A]

    (Appellant) (Respondent)

    For Assessee: Shri P. Vinod, AR


    For Revenue: Shri N. Srikanth, D.R.

    Date of Hearing : 25/03/2021


    Date of Pronouncement : 15/06/2021

    ORDER

    This assessee’s appeal for A.Y. 2019-20 arises against the


    Commissioner of Income Tax (Appeals) “[CIT(A)]”-3, Hyderabad’s order dated
    11.09.2020 passed in case no. 11120/2019-20 in proceedings u/s 143(1)
    of the Income Tax Act, 1961 [in short ‘the Act’].

    Heard both the parties. Case file perused.

    Assessee has raised the following substantive grounds in its appeal.

    “2. The ld.CIT(A)-3 erred in sustaining the addition on account of employees


    contribution to PF & ESI without considering that they were paid before the due
    date of filing the return of income.

    3. The ld.CIT(A)-3 erred in holding that the amount paid beyond due date is
    income without considering the various case laws by various high courts
    holding that the same is allowable. There is no judgement by Jurisdictional

    Printed from itatorders.in


    ITA No.644/Hyd/2020 AY 2019-20
    Salzgitter Hydraulics Pvt. Ltd. Hyd.

    High Court on this issue. However, there are various other High Courts
    decision in favour of assessee.”

    2. Coming to the sole substantive issue of ESI/PF disallowance of


    Rs.1,09,343/- and Rs.3,52,622/-, the assessee’s and revenue’s stand is that
    the same has been paid before the due date of filing sec. 139(1) return and
    after the due date prescribed in the corresponding statutes; respectively. I
    notice in this factual backdrop that the legislature has not only incorporated
    necessary amendments in Sections 36(va) as well as 43B vide Finance Act,
    2021 to this effect but also the CBDT has issued Memorandum of
    Explanation that the same applies w.e.f. 1.4.2021 only. It is further not an
    issue that the forergoing legislative amendments have proposed employers
    contributions; disallowances u/s 43B as against employee u/s 36 (va) of
    the Act; respectively. However, keeping in mind the fact that the same has
    been clarified to be applicable only with prospective effect from 1.4.2021, I
    hold that the impugned disallowance is not sustainable in view of all these
    latest developments even if the Revenue’s case is supported by the following
    case law.

    (i) CIT vs. Merchem Ltd, [2015] 378 ITR 443(Ker)


    (ii) CIT vs. Gujarat State Road Transport Corporation (2014) 366 ITR 170
    (Guj.)
    (iii) CIT vs. South India Corporation Ltd. (2000) 242 ITR 114 (Ker)
    (iv.) CIT vs. GTN Textiles Ltd. (2004) 269 ITR 282 (Ker)
    (v) CIT vs. Jairam & Sons [2004] 269 ITR 285 (Ker)
    The impugned ESI/PF disallowance is directed to be deleted therefore.

    This assessee’s appeal is allowed.

    Order pronounced in Open Court on 15th June, 2021.

    Sd/-
    (S.S. GODARA)
    JUDICIAL MEMBER
    Dated: 15th June, 2021

    • gmv

    Printed from itatorders.in


    ITA No.644/Hyd/2020 AY 2019-20
    Salzgitter Hydraulics Pvt. Ltd. Hyd.

    Copy of Order forwarded to:


    1. Salzgitter Hydraulics Private Ltd., # 59-B, CIE, Gandhi Nagar extension,
    Balanagar, Hyderabad
    2. ITO, Ward 3(1), Hyderabad
    3. ACIT, Range 3, Hyderabad
    4. Dy.DIT, CPC, Bengaluru
    5. CIT(A)-3, Hyderabad.
    6. Pr.CIT -3, Hyderabad
    7. D.R. ITAT Hyderabad
    8. Guard File

    Printed from itatorders.in

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