2022 (5) TMI 1329

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.....2021 for assessment year 2019-20. 2. Regarding the first ground of appeal, briefly, the facts of the case are that the assessee filed its return of income on 31.10.2019 declaring total income of Rs. 2,17,28,882/-, which was processed u/s. 143(1) of the Act and in terms of intimation u/s. 143(1) dated 07.07.2020 issued by CPC, had made disallowance of Rs. 3,41,858/- towards late deposit of employees' contribution to ESI & PF. 3. On appeal, the Ld. CIT(A), NFAC has confirmed the disallowance and against the said order, the assessee has now come up in appeal before us. 4. During the course of hearing, the Ld. AR submitted that the assessee has deposited employees' contribution towards ESI and PF though with the delay of few d....

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....in the relevant findings read as under: "4. We have heard the submissions and perused the material available on record. It is seen that in the present appeal, the assessee has only assailed the disallowance sustained by the CIT(A) vide his order passed u/s. 250(6) of the Act amounting to Rs. 4,52,231/- on the grounds that the ESI & PF payments were not made within time as per the relevant Statute. The claim of the assessee that the payments were made before the due date of filing of the return u/s. 139(1) was held to be not relevant. It is seen that the said issue as far as the present Forum is concerned, stands fully covered in favour of the assessee not only by the consistent orders of the various Benches of the ITAT namely; the ....

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....e year under consideration which is 2018-19 assessment year. The impugned order, accordingly, is set aside and the AO is directed to delete the disallowance. The appeal of the assessee is allowed. Said order was pronounced in the presence of the parties via Webex." 5. Per contra, the Ld. DR relied upon the amendment brought in by the Finance Act, 2021 wherein Explanation to section 36(1)(va) of the Act has been introduced. It was submitted that from the reading of the said amendment it is evident that the law is and has always been very clear that employees' contribution to specified fund will not be allowed as deduction u/s. 36(1)(va) of the Act if there is delay in deposit even by a single day as per the due dates specified in the ....

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....e divergent views taken by the various High Courts and in the instant case, the fact that the jurisdiction over the Assessing officer lies with the Hon'ble Punjab & Haryana High Court, in our considered view, the Ld. CIT(A) ought to have considered and followed the decision of the jurisdictional Punjab & Haryana High Court, as evident from series of decisions referred supra, as the same is binding on all the appellate authorities as well as the Assessing officer under its jurisdiction in the State of Punjab & Haryana. We further note that the Ld. CIT(A) has referred to the amendment brought in by the Finance Act, 2021 wherein an explanation has been introduced to Sections 36(1)(va) and u/s. 43B of the Income Tax Act. It is a consistent ....