ACME INDUSTRIES,BHILWARA vs. ACIT, CIRCLE, BHILWARA

O R D E R PER: SANDEEP GOSAIN, JM Both these appeals have been filed by the assessee against two different orders of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi dated 25-11-2021& 01-10-2021 for the assessment years 2018-19 & 2019-20 respectively raising therein following grounds of appeal.

ACME INDUSTRIES VS ACIT, CIRCLE, BHILWARA – A.Y. 2018-19 (1) That on the facts and in the circumstances of the case, the ld. CIT(A), NFAC has grossly erred in violating the principles of faceless appeal as announced for justice of honest taxpayers to avoid litigation as created unnecessary by AO.

(2) That on the facts and in the circumstances of the case the ld. CIT(A) erred in upholding the validity of order passed by the AO u/s 154 of the Act. (3) That on the facts and in the circumstances of the case, ld. CIT(A) grossly erred in consciously and deliberately highly disregarding the decision of Hon’ble Jurisdictional High Court. (4) That on the facts and in the circumstances of the case the ld. CIT(A) grossly erred in sustaining addition of Rs.3,41,040/- in respect of employees contribution to ESI & PF. (5) That on the facts and in the circumstances of the case, the ld. CIT(A) grossly erred in holding that amendment in Section 36(1)(va) and Section 43B by Finance Act, 2021 will be applicable in the case of assessee. (6) That on the facts and in the circumstances of the case, the ld. CIT(A) grossly erred in recording irrelevant finding in the order and thereby sustaining arbitrary addition in a hypothetical way by putting the assessee to erroneous harassment and inconvenience. – A.Y. 2019-20 (1) That on the facts and in the circumstances of the case, the ld. CIT(A), NFAC has grossly erred in violating the principles of faceless appeal as announced for justice of honest taxpayers to avoid litigation as created unnecessary by AO.

(2) That on the facts and in the circumstances of the case the ld. CIT(A) erred in upholding the validity of order passed by the CPC u/s 143(1) of the Act. (3) That on the facts and in the circumstances of the case, ld. CIT(A) grossly erred in consciously and deliberately highly disregarding the decision of Hon’ble Jurisdictional High Court. (4) That on the facts and in the circumstances of the case the ld. CIT(A) grossly erred in sustaining addition of ACME INDUSTRIES VS ACIT, CIRCLE, BHILWARA Rs.2,26,654/- in respect of employees contribution to ESI & PF. (5) That on the facts and in the circumstances of the case, the ld. CIT(A) grossly erred in holding that amendment in Section 36(1)(va) and Section 43B by Finance Act, 2021 will be applicable in the case of assessee. (6) That on the facts and in the circumstances of the case, the ld. CIT(A) grossly erred in recording irrelevant finding in the order and thereby sustaining arbitrary addition in a hypothetical way by putting the assessee to erroneous harassment and inconvenience. 2.1 During the course of hearing, the Bench observed that there is delay of 36 days and 91 days in filing the above mentioned appeals respectively by the assessee for which the ld. AR of the assessee has submitted that because of COVID-19 pandemic, the appeal could not be filed in time. However, the Hon’ble Supreme Court vide its order dated 10-01-2022 excluded the period starting from March 15, 2020 till Feb. 28, 2022 for the purposes of limitation. Hence, the ld. AR of the assessee prayed to condone the delay for which the ld. DR did not raise any objection. In this view of the matter, the delay is condoned. 3.1 First of all, we take up the appeal of the assessee for the assessment year 2018-19 for adjudication. Brief facts of the case are that the assessee e-filed the ITR on 25-09-2018 declaring total income at Rs.27,75,370/-. Order u/s 143(1) was passed on 16-10-2019 at assessed income of Rs.30,12,403/- and raised demand of Rs.91,910/-. The assessee filed the rectification application u/s 154 of the Act which was rejected by the ACIT, Circle-Bhilwara vide his order