2021 (10) TMI 1294

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....s a proprietor concern. Assessee filed his return of income for A.Y. 2019-20 on 11.10.2019 declaring total income of Rs. 20,61,810/-. In the intimation issued u/s 143(1) of the Act dated 28.02.2021, the total income from business and profession was determined at Rs. 18,13,404/- as against the returned income of Rs. 11,18,941/- inter alia by making disallowance of Rs. 6,94,463/- on account of delayed deposit of employees' contributions towards PF/ESIC. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who in the order dated 25.05.2021 in Appeal No. CIT(A), Gurgaon-1/12046/2019-20 upheld the order of AO. Aggrieved by the order of CIT(A), assessee is now in appeal before me and has raised the following grounds : ....

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....e made u/s 36(1)(va) of the Act. 5. Before me, Learned AR pointed to the statement showing delay in deposit of employees' contribution towards PF/ESIC at page 13 of the paper book and from the aforesaid table, he submitted that though there has been delay in deposit of PF/ESIC Contributions but all the contributions received by the assessee have been deposited with the appropriate authorities before the filing of return of income by the assessee. He therefore submitted that since the amounts have been deposited before filing the return of income, no disallowance is called for and for aforesaid proposition, he relied on the decision in the case of Azamgarh Steel & Power vs CPC in ITA No.1626/Del/2020 dated 31.05.2021 and CIT vs. AIMI....

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....ra). As far as reliance by Learned DR on the amendment brought out by Finance Act 2021 is concerned, "notes on clauses" to the Finance Bill 2021 clearly states that the amendment will take effect from 1st April 2021 and will apply in relation to the assessment year 2021-22 and subsequent assessment year. In such a situation, I am of the view that the amendment does not apply to the assessment year under consideration. As far as the reliance of Revenue on the decision of Vedvan Consultants Pvt. Ltd. (supra) is concerned, I find that the various division Benches of the Delhi & other Tribunal have held the delayed deposits of PF/ESIC Contributions to be allowable if the same are deposited with the appropriate authorities before filing of retur....