2022 (2) TMI 809

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....s of providing security guard services to its clients. Assessee filed its return of income for A.Y. 2018-19 on 31.10.2018 declaring the total income of Rs. 33,26,184/-. CPC Bangalore vide DIN No. CPC/1819/A3/1918834742 dated 13.12.2019 issued u/s. 143(1) of the Act determined the total income at Rs. 65,69,970/- after making disallowance of Rs. 33,93,790/- u/s. 36(1)(va) of the Act on account of non-deposit of the employees' contribution towards PF/ESIC before the prescribed due dates. Aggrieved by the order of AO, assessee carried the matter before the CIT(A). National Faceless Appeal Centre (NFAC), Delhi vide order dated 24.09.2021 in DIN & Order No. ITBA/NFAC/S/250/2021-22/1035861429(1) dismissed the appeal of the assessee. Aggrieved ....

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....ployees' contribution of PF/ESIC but the fact remains that the entire contributions received by the assessee have been deposited with the appropriate authorities by the assessee before the filing of return of income. He further submitted that the gap between due date and actual date of deposit is very less, in some cases this gap is just for 1 or 2 days. He therefore submitted that in such a situation no disallowance under section 36(1)(va) of the Act is called for and for this proposition, he placed reliance on the decision in the case of CIT vs. AIMIL Ltd. [2010] 188 Taxman 265 (Delhi) and other decisions cited in his submissions. He further submitted that CIT(A) has erred in relying on the amendment made by Finance Bill 2021. He subm....

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....ropriate authorities by the assessee before filing the return of income for the relevant assessment year. We find that Hon'ble Delhi High Court in the case of CIT vs. AIMIL Ltd. (supra) has held that no disallowance under section 36(1)(va) of the Act is called for when the amounts are deposited before filing the return of income. As far as the applicability of amendment made by Finance Act 2021 is concerned, we find that the Co-ordinate Bench of Tribunal in the case of Indian Geotechnical Services (supra) has held that amendment made by Finance Bill 2021 shall take effect from 1st April 2021 and will accordingly apply to A.Y. 2021-22 and subsequent years. In the present case assessment year involved is 2018-19 and therefore following th....