2022 (10) TMI 110

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.... Assessee is a Private Limited company and filed its return of income on 21.10.2019 for A.Y. 2019-20 declaring total income of Rs.32,42,032/-. In the intimation issued u/s 143(1) of the Act by CPC, Bangalore vide Identification No. CPC/1920/A6/2003047539 dated 06.07.2020, the total income was determined at Rs.34,63,760/-. Aggrieved by the intimation issued u/s 143(1) of the Act, assessee carried the matter before CIT(A) who vide order dated 29.09.2021 in Appeal No.CIT(A), Delhi-2/10091/2020-21 dismissed the appeal of the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal and has raised the following grounds: (i) "On facts and in law, the order passed by learned CIT (Appeal) is bad in law as the same has been pass....

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.... to provident fund u/s 36(1)(va). (v) On facts and in law the learned CIT (Appeal) was wholly unjustified in summarily rejecting in disallowing a sum of Rs. 221,728/- on account of deduction of employees contribution of provident fund wherein assessee has contributed to provident fund before due date of filing of the income tax return in his case for furnishing return of income u/s 139(1) of the income tax act no disallowance can be made under the income tax act. (vi) On facts and in law the learned CIT (Appeal) was wholly unjustified in disallowing Rs. 221,728/- ignoring the judgment of Hon'ble Supreme Court in the case of CIT vs. Vinay Cement Ltd. 2007 213 CTR (SC) 268 wherein it has been held as under in circumstances t....

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....nt brought by Finance Act 2021 from 01.04.2021. Explanation inserted to section 43B and 36(va) has prospective effect and same will be applicable only from 01.04.2021. The decision of Hon'able Supreme court and Delhi High court are squarely applicable in the present case. (x) That the appellant denies its liability to be reassessed at total income of Rs. 3,463,760/- against returned income and accordingly denies its liability to pay tax, cess and interest demanded thereon. (xi) That the appellant craves to urge additional ground/grounds, substitute, alter or amend any of the grounds of appeal either before or at the time of the hearing of this appeal including reliance on additional case laws." 4. Before us, at the ....

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....as by the amendment it has been clarified that provisions of Section 43B of the Act shall not apply and shall be deemed never to have been applied to a sum received by the assessee from any of its employees to which the provisions of sub clause (x) of Clause (24) of Section 2 applies. 7. We have heard the rival submissions and perused the material available on record. The issue is no more res-integra. The issue has already been settled in favour of the assessee by various judicial pronouncements by the Tribunal. The Hon'ble Jurisdictional High Court of Delhi in the case of PCIT vs. Pro Interactive Service (India) Pvt. Ltd. ITA no. 983/2018 dated 10.09.2018 has already taken a view in favour of the assessee by holding as under: "....