Appellant's Appeal Allowed for Stat Purposes, Remitted GST Issue for Fresh Decision

The Tribunal allowed the appellant's appeal for statistical purposes, condoning the delay in filing the appeal and directing the AO to delete the addition related to employees' contribution towards provident fund, applying the Amendment prospectively from AY 2021-22 onwards. The issue of non-payment of GST was remitted back to the AO for a fresh decision to provide the appellant with a fair opportunity to present their case. The Tribunal emphasized the importance of affording the appellant a chance to address the issues raised.

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Issues Involved:
1. Condonation of delay in filing the appeal before the Tribunal.
2. Disallowance of employees' contribution towards provident fund and GST payment in the assessment order.
3. Jurisdiction of the AO to make adjustments/additions to the returned income.
4. Prospective nature of the Amendment brought in by Finance Act 2021 regarding employees' contribution towards provident fund.
5. Non-payment of GST within the due date under section 139(1) of the Income Tax Act.

Issue 1: Condonation of Delay in Filing the Appeal
The appellant filed an appeal against the order of the National Faceless Appeal Centre, Delhi, dated 01.04.2021 for A.Y. 2018-19 with a delay of 57 days. The Tribunal, after considering the reasons provided by the appellant, condoned the delay in filing the appeal, as it found a sufficient cause for the delay.

Issue 2: Disallowance of Employees' Contribution towards Provident Fund and GST Payment
The AO disallowed the employees' contribution towards provident fund and added back an amount for non-payment of GST within the due date under section 139(1) of the Income Tax Act. The appellant challenged these adjustments in the appeal. The Tribunal referred to relevant judicial precedents and held that the Amendment brought in by Finance Act 2021 regarding employees' contribution towards provident fund is prospective in nature and would apply from AY 2021-22 onwards. Consequently, the Tribunal directed the AO to delete the addition related to the employees' contribution towards provident fund. Regarding the non-payment of GST, the Tribunal remitted the issue back to the AO for a fresh decision, emphasizing the importance of providing the appellant with an opportunity to present their case.

Issue 3: Jurisdiction of the AO
The appellant contended that the AO lacked jurisdiction to make the adjustments/additions to the returned income. However, the Tribunal did not delve deep into this issue as the primary focus was on the specific adjustments made by the AO regarding the employees' contribution towards provident fund and GST payment.

Issue 4: Prospective Nature of the Amendment
The Tribunal extensively discussed the prospective nature of the Amendment brought in by Finance Act 2021 regarding the employees' contribution towards provident fund. Citing relevant judicial precedents and legislative intent, the Tribunal concluded that the Amendment is prospective in operation and clarified that it would apply from AY 2021-22 onwards.

Issue 5: Non-Payment of GST within Due Date
The Tribunal acknowledged that the assessment order was ex-parte, and the appellant did not have an opportunity to present their case regarding the non-payment of GST within the due date. Consequently, the Tribunal remitted the issue back to the AO for a fresh decision, emphasizing the importance of providing the appellant with a fair opportunity to submit their reply.

In conclusion, the appeal of the assessee was allowed for statistical purposes, with specific directions given to the AO for further consideration of the issues raised in the appeal.

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