BIRD EXECUJET AIRPORT SERVICES PVT. LTD.,NEW DELHI vs. CIRCLE 4(2), NEW DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH ‘G’, NEW DELHI

BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER

Sr. ITA No(s) Asst. Appeal(s) by Assessee By Revenue By Nos Year(s) Appellant vs. Respondent Appellant Respondent 1. 97/Del/2022 2019-20 Shankar Fenestration Assessing Shri Rakesh Shri Sanjay & Glasses India Officer, Kumar, CA Kumar Nargas, Pvt.Ltd., F-3, South Ward-2(2)(3), Sr. DR Side, G.T.Road, Ghaziabad Industrial Area, Vijay Nagar, Ghaziabad, Uttar Pradesh-201001. PAN : AAYCS8335H 2. 111/Del/2022 2019-20 Dayal Industries Assessing Shri Sanjay --do— Pvt.Ltd., C/o-Sanjiv Officer, Sapra, FCA Sapra & Associates, Circle- LLP Chartered 1(1)(1), Accountants, C-763, Meerut New Friends Colony, New Delhi-110019. PAN-AABCD2004M 3. 124/Del/2022 2018-19 Shradha Saburi DCIT, --None-- --do-- Hospilatities P.Ltd., Circle-22(2), CB-190, Ground Floor, New Delhi Naraina Village, New Delhi-110028. PAN-AAICS9541F 4. 127/Del/2022 2019-20 Naresh Kumar ADIT, Shri --do-- Chawla, House Bengaluru S.K.Bansal, No.2272, Sector-9, CA Faridabad, Haryana-121006. PAN-AAUPC9820C 5. 291/Del/2022 2019-20 Mare Sanitation DDIT, Shri Sant --do-- Pvt.Ltd., CPC, Kapoor, Adv. A-2, SMA Co-op, Bengaluru Industrial Estate, New Delhi-110033. PAN-AAACM8683J 6. 292/Del/2022 2018-19 --do-- --do-- --do-- --do-- 7. 293/Del/2022 2019-20 Dinesh Bhardwaj, DCIT, --None-- --do-- A-5, Ashok VIhar, CPC, Gurgaon, Haryana. Banglore PAN-BBDPD3698C 8. 310/Del/2022 2018-19 IDP Education India Assessing S/Shri Kamal --do-- Pvt.Ltd., 5th, 6th & 7th Officer, Sawhney, Floor, Tower-B, Global National e- Adv. & P. Mehrchandani, Gateway, Village Assessment Adv. Sikanderpur, Ghosi Centre, Delhi Sector-6, Gurgaon, Haryana-122002. PAN-AABCI6253M 9. 311/Del/2022 2019-20 --do-- ADIT, CPC --do-- --do-- Bengaluru

2 10. 313/Del/2022 2018-19 Rohit Salwan, DCIT, CPC --None-- --do-- A-97/1, New Ashok Bengaluru Nagar, Delhi-110096. PAN : ATXPS1785L 11. 328/Del/2022 2019-20 Sansun Staffing ITO, Shri Shrey --do-- Solutions Pvt.Ltd., Ward-22(3), Chakarbarty, B—102/2, East of New Delhi Adv. Kailash, South Delhi, New Delhi. PAN : AAICS2876B 12. 341/Del/2022 2018-19 TK Elevator India Pvt. ACIT, Shri Pravesh --do-- Ltd. (Earlier known as Circle-25(1), Sharma, Adv Thyssenkrupp New Delhi Elevator India Pvt.Ltd.), Plot No.429, Functional Industrial Estate, Patparganj, Delhi-110092. PAN-AABCT6921F 13. 388/Del/2022 2018-19 Salve Pharmaceuticals CPC Shri Manoj --do-- Pvt.Ltd., Plot No.48, Bangalore Sabarwal, Second Floor, Rama Adv. Road, Najafgarh Road Industrial Area, Kirti Nagar, Delhi-110088. PAN : AAJCS6793C 14. 546/Del/2022 2018-19 Pankaj Kumar, ITO, --None-- --do-- C/o-PKSN Associates, Ward-3(2), IG-43BP, 2nd Floor, Gurgaon. NI, Faridabad, Haryana-121001. PAN : AIOPK6966D 15. 653/Del/2022 2019-20 Rakesh Kumar Gutpa, Assessing Shri Suresh K --do-- C-111, Antriksh Officer, Gupta, CA Apartment, Sector-14, Delhi Rohini, Delhi-110085. PAN : AAKPG4091R 16. 665/Del/2022 2018-19 Shri Garuna DCIT, S/Shri Kapil --do-- Management Service CPC, Goel, Adv. & Pvt.Ltd., C/o-Kapil Ward-27(3), Sandeep Goel, Goel, Adv., F-26/124, New Delhi. Adv. Sector-7, Rohini, New Delhi-110085. PAN : AAWCS2278K 17. 673/Del/2022 2019-20 Venus Hotelware Assessing Ms. Vibha --do-- Pvt.Ltd., 39, Officer, Kulkarni, DLF Industrial Area, Ward-26(2), Adv. & Sh. Kirti Nagar, Delhi H.Aggarwal, New Delhi-110015. Adv. PAN : AAACV0339A 18. 696/Del/2022 2019-20 S.V.S.Facilitators, ADIT, Shri --do-- C-96, Anand Niketan, Banglore J.S.Kochar, New Delhi-110021. CA PAN-ACPFS7777P 19. 698/Del/2022 2018-19 Shri Ashok Kumar, ITO, Shri Krishna --do-- 874/2, 2nd Floor, Bus Gurgaon Kumar, CA Stand Near Mamta Hospital, Secto-12A, Chowkk Main Post Office, Gurgaon,

3 Haryana-122001. PAN : AQKPK0286E --do-- 20. 699/Del/2022 2019-20 --do-- --do-- --do-- 21. 734/Del/2022 2018-19 Stelatoes Shoe Bazar, DCIT, Shri Yishu --do-- J-87, Shop No.3, CPC, Goel, CA Main Market, Bengaluru Rajouri Garden, New Delhi-110027. PAN : ABLFS9758H 22. 744/Del/2022 2018-19 GDA Security P.Ltd., CPC, --None-- --do-- 604-611, Eros Bangalore Apartment, 56, Nehru Place, New Delhi-110019. PAN-AAACG1109P 23. 745/Del/2022 2019-20 GDA Security P.Ltd., CPC, --None-- --do-- 601-603, Eros Bangalore Apartment, 56, Nehru Place, New Delhi-110019. PAN-AAACG1109P 24. 750/Del/2022 2017-18 Prime Services, ACIT, Shri Manoj --do-- F-30, Moti Nagar, Circle-43(1), Sabharwal, New Delhi-110015. Delhi Adv. PAN-AAEFP1841N 25. 751/Del/2022 2018-19 --do-- --do-- --do-- --do-- 26. 776/Del/2022 2019-20 VE Commercial Asst. DIT, Ms.Manisha --do-- Vehicle Limited, CPC, Sharma, Adv. 3rd Floor, Select City Bengaluru Walk A-3, District Centre, Saket, New Delhi-110017. PAN-AABCE9378F 27. 935/Del/2021 2019-20 Rommana Herbal Care ADIT, CPC, Shri Arvind --do-- Pvt.Ltd., E-43, Flatted Bengaluru Kumar Factory Complex, Mehashwari, Jhandewalan CA Extension, New Delhi-110055. PAN : AAECR1038C 28. 962/Del/2021 2019-20 Amar Ujala Ltd., CPC, ITD Shri Ashish --do-- 1101, 11th Floor, Bengaluru Goel, CA Antriksh Bhawan, 22, K.G.Marg, New Delhi-110001. PAN : AADCA0275H 29. 1024/Del/2021 2018-19 Dayal Fertilizers DCIT, Shri Sanjeev --do-- Pvt. Ltd., CPC, Sapra, CA & C/o-Sanjiv Sapra & Bangalore Shri Satish Associates LLP, Sapra, Adv. Chartered Accountants, C-763, New Friends Colony, New Delhi-110025. PAN : AAACD8005H 30. 1085/Del/2021 2018-19 Vidhyut Control (India) DCIT, Shri Sunil --do-- Pvt.Ltd.,D-12, CPC, Gupta, CA Kavi Nagar Industrial Bangalore Area, Sector-17, Ghaziabad, Uttar

4 Pradesh-201002. PAN-AAACV4403B 31. 1101/Del/2021 2018-19 Dinesh Kumar, ITD, CPC, Shri Manoj --do-- C/o-Pankaj Mahesh & Bengaluru Garg, CA Co., F-36, First Floor, Raheja Square, Opp. Medeor Hospital, IMT Manesar, Gurgaon, Haryana-122050. PAN : BKMPK1962N 32. 1102/Del/2021 2019-20 --do-- --do-- --do-- --do-- 33. 1105/Del/2021 2019-20 Nepal Singh, ADIT, --None-- --do-- House No.724, Secotr- CPC, 3, Faridabad, Bangalore. Haryana-121004. PAN-AONPS8818M 34. 1143/Del/2021 2017-18 Munish Ahmed, ITD, CPC, Shri Canitin --do-- Mohalla Imam Sahab, Bengaluru. Kanwar, Adv. Old Gohana Road, Ward-20, Panipat, Haryana-132103. PAN- ADXPA0591N Jurisdictional 35. 1155/Del/2021 2018-19 Dilbag Singh Kahlon, --None-- --do-- C-22, Green Park Main, Assessing New Delhi-110016. Officer, PAN-AFMPK2345B New Delhi 36. 1156/Del/2021 2019-20 --do-- --do-- --None-- --do-- 37. 1183/Del/2021 2019-20 Cargo Construction DCIT, Shri Ashok --do-- Company Pvt.Ltd., Circle-4(2), Khandelwal, 1/9-B, Jindal House, New Delhi. CA Asaf Ali Road, New Delhi-110002. PAN-AAACC5291J 38. 1184/Del/2021 2019-20 Cargo Motors Pvt.Ltd., DCIT, --do-- --do-- 1/9-B, Jindal House, Circle-4(2), Asaf Ali Road, New Delhi. New Delhi-110002. PAN-AAACC2744C 39. 1187/Del/2021 2018-19 Bird Execujet Airport NFAC, --None-- --do-- Services Pvt.Ltd., New Delhi E-9, Connaught Place, New Delhi-110001. PAN-AACCB7218E 40. 1213/Del/2021 2018-19 Source Soft Solution ITD, --None-- --do-- Pvt.Ltd., House No.61, CPC, Lane No.2, Krishna Bengalore. Nagar, A-1, Safdarjung Enclave, Vinay Nagar, New Delhi-110029. PAN-AALCS1030J 41. 1234/Del/2021 2018-19 M/s. Elegant ITO, Shri --do-- Overseas, 507, CPC, S.Krishanan, Express Tower, Bengaluru Adv. Commercial Complex, Azadpur, New Delhi-110033. PAN-AAAFE2738F 42. 1235/Del/2021 2019-20 --do-- --do-- --do-- --do-- 43. 1247/Del/2021 2018-19 M/s. Technico CPC, Shri Rahul --do-- Industries Ltd., Bangalore Chaurasia,

5 103, Pratap Bhawan CA Bahadurshah Zafar Marg, New Delhi-110002. PAN-AAACT4445P 44. 1304/Del/2021 2019-20 Jain Industrial DCIT, Shri Lalit --do-- Products, CPC, Mohan, Adv. 47, 70, IDC, Bengalore Hisar Road, Hisar, Haryana-124001. PAN-AAAFJ5741R 45. 1434/Del/2021 2019-20 B M Gupta Estates ADIT, Shri Saten --do-- Pvt.Ltd., 5948 & 5949, CPC, Delhi Setri, Adv. Room No.2, Basti Harphool Singh, Sadar Thana Road, New Delhi-110006. PAN-AADCA0609B 46. 1435/Del/2021 2018-19 Vijay Pal Singh, ADIT, Shri Rajeev --do-- Shop No.05, Amar CPC, Mago, CA Shree Complex, Delhi Bengaluru Road, Meerut, Uttar Pradesh-250002. PAN-ADLPS2026A 47. 1436/Del/2021 2018-19 Harish Chander, ADIT, --do-- --do-- 274/3, Khandsa Road, CPC, Hari Nagar, Gurgaon, Bengaluru Haryana-122001. PAN-AGEPC7410N --do-- 48. 1437/Del/2021 2019-20 DCIT, --do-- --do-- CPC, Bengalore 49. 1513/Del/2021 2018-19 Airif Engineers DCIT, Shri Vijay --do-- Pvt.Ltd., 117, Tagore CPC, Singla, CA Garden, Model Town, Bengaluru New Delhi-110009. PAN-AADCA8285H 50. 1580/Del/2021 2019-20 Lumenis India ADIT, --None-- --do-- Pvt.Ltd., B-376, CPC, Delhi 3rd Floor, Nirman Vihar, Near Legal Banquet Hall, New Delhi-110092. PAN-AABCL1617J 51. 1601/Del/2021 2019-20 Singla Motors Pvt.Ltd., DCIT, --None-- --do-- Pingli Road, Karnal, Circle, Haryana-132001. Karnal PAN-AAPCS1308D 52. 1602/Del/2021 2018-19 Kishiv Motors Pvt.Ltd., DCIT, --None-- --do-- 103, Sector-14, Circle, Urban Estate, Kaithal, Karnal Haryana-132001. PAN-AADCK9038J 53. 1605/Del/2021 2018-19 Sunridges Sporting Assessing --None-- --do-- Goods Pvt.Ltd.,C-32- Officer, C/o-R.K.Garg, Adv., T- Circle-2(1), 314, Ganga Plaza, Meerut Meerut-250001. PAN-AAKCS4748L 54. 1706/Del/2021 2019-20 Systematic ITO, Shri Sushil --do--

6 Communication Ward-22(4), Wadhva, CA Pvt.Ltd., 216, RG New Delhi Square, Patparganj, New Delhi-110092. PAN-AAGCS6646F 55. 1756/Del/2021 2018-19 Chase Detective & DCIT, Shri Shrey --do-- Security Agency CPC, Chakarbarty, Pvt.Ltd., G-8, GF Bengaluru Adv 56/1, Kalu Sarai, Begum Pur, Malviya Nagar, New Delhi- 110017. PAN-AACCC5574E 56. 1874/Del/2021 2019-20 Triple Play Interactive CIT(A), Shri Tilak --do-- Network Pvt.Ltd., NFAC Channa, Adv Premises No.1002, 10th Floor, Galleria Complex, Gurgaon, Haryana-122009. PAN-AADCT3507B 57. 1876/Del/2021 2018-19 Sukbir Singh, DCIT, CPC, --None-- --do-- F-2469, Ansal Palam Bengaluru VIhar, Gurgaon, Haryana-122917. PAN-AQRPS3030P 58. 1878/Del/2021 2018-19 Quality Buildcom CIT(Appeals), Shri Satya --do-- Pvt.Ltd., 301-305, 3rd NFAC Ahuja, CA Floor, Anupam Arcade, Mayur Vihar Extension, Phase-I, Delhi-110091. PAN-AAACQ0168L 59. 1916/Del/2021 2019-20 Welgrow Hotels ITO, Shri --do-- Concepts O.Ltd., Ward-27(3), S.Krishanan, B-6, Geetanjali New Delhi Adv. Enclave, Malviya Nagar South, New Delhi-110017. PAN-AAACW5407C 60. 1876/Del/2021 2018-19 Sukbir Singh, DCIT, CPC, --None-- --do-- F-2469, Ansal Palam Bengaluru VIhar, Gurgaon, Haryana-122917. PAN-AQRPS3030P 61. 1940/Del/2021 2018-19 Sheryl Strategic Ward-5(1)(1), --None-- --do-- Solutions Pvt.Ltd., Gautam 418, Manhatan 09 Budh Nagar Tower, Mahagun Moderne, Sector-78, Gautam Budh Nagar, Noida-201301. PAN-AAXCS5193A 62. 1945/Del/2021 2018-19 Rakesh Kumar Ward-5(3)(1), --None-- --do-- Sharma, H.No.2, SD-5, Gautam Sector-45, Sadarpur, Budh Nagar Noida, U.P-201301. PAN-FEJPS9471H 63. 1957/Del/2021 2019-20 Kaizen Metal & DCIT, Shri Anuj --do-- Forming Pvt.Ltd., Ward-14(1), Tiwari, Adv. J-89, UPSIDC Site-5, Delhi

7 Industrial Area, Area Kasna, Gr.Noida, Ghaziabad, U.P. PAN-AACCK1286B Date of hearing: 18.05.2022 Date of Pronouncement: 18.05.2022 ORDER PER BENCH : The present appeals are filed by the above mentioned assessees feeling aggrieved by the orders passed by appellate authority for various assessment years mentioned hereinabove.

8 Alom Extrusions Ltd. [2009] 319 ITR 306 (SC); CIT v. Vinay Cement Ltd. [2007] 213 CTR 268 (SC); Pr. CIT v. Raj. State Bev. Corpn. Ltd. [2017] 84 taxmann.com 185 (SC); CIT v. AIMIL Limited [2010] 321 ITR 508 (Delhi) In a latest order dated 10.09.2018 the Jurisdictional High Court of Delhi in ITA 983/2018 Pro Interactive Service (India) Pvt. Ltd has held this issue in the favor of assessee and held that: no substantial question of law arises for consideration in this appeal. The legislative intent was/is to ensure that the amount paid is allowed as an expenditure only when payment is actually made. We do not think that the legislative intent and objective is to treat belated payment of Employee's Provident Fund (EPD) and Employee's State Insurance Scheme (ESI) as deemed income of the employer under Section 2(24)(x) of the Act.” 2. CIT(A) has erred in law in confirming the disallowance of employee contribution to ESI in the light of amendment in sections 36(1)(va) as well as in section 43B by inserting corresponding Explanations through Finance Act, 2021. Although the impugned employee PF/ESI now comes under the provision of section 36(1)(va) only, but the memorandum explaining Finance Bill, 2021 says that these amendments will take effect from 01.04.2021 and will accordingly apply to AY 2021-22 and subsequent Assessment Years. Thus the legislature itself has condoned the impugned default before 01.04.2021. Latest Case Laws relied upon After amendment in 3. Finance Act 2021(Covered Matter)

9 Insta Exhibitions Private Limited vs ACIT ITA No 6941/DEL/2017 (and ITA no 4959/DEL/2016) wherein it was held that belated payments of ESI and PF cannot be treated as deemed income u/s 2(24). Further it was held that ‘notes on clauses introducing Finance Bill holds that amendment is effective from A.Y 2021-22’ and thus deleted the addition on this account. Shashi Rajawat u/s ITO (ITAT Jaipur) (Pronounced on 12.10.2021) Employee contribution towards ESI/PF though paid before due date of filing of return of Income Tax u/s 139(1) is hereby directed to be deleted. CIT (A) referred explanation to 36(1)(v)(a) and 43 B by Finance Act 2021 and referred the rationale of amendment as explained in memorandum, However, he has simply failed to consider the express wording as the ITAT memorandum which say “these amendments will take effect from 01.04.2021 and will accordingly apply to assessment year 2021-22 and subsequent assessment years. Vansh Jain vs ITO (ITA No.1853/Del/2020) (Pronounced on 13.10.2021) Since in the instant case the assessee admittedly has deposited the employees' contribution to PF & ESI before the due date of filing of the income tax return, therefore, respectfully following the decisions cited (supra), I hold that the Ld. CIT(A) is not justified in sustaining the adjustment made by the A.O-CPC of Rs.3,26,330/- on account of belated payment of employees' contribution to

10 PF & ESI. I, therefore, set aside the order of the Ld. CIT(A) and direct the A.O. to delete the disallowance. The grounds raised by the assessee are accordingly allowed. Adama Solution Pvt. Ltd., New Delhi ITA.No.1800/Del./2020 (Order pronounced on 13.10.2021) The amendment made in section 36(1)va) is effective from 01.04.2021 and will, accordingly apply in relation to A.Y. 2021-2022 and subsequent assessment year. In view of this we allow the solitary ground of appeal raised by the assessee holding that the addition/disallowance made by the learned assessing officer of late deposit of employees contribution to the provident fund and ESI, as it is deposited before the due date of the filing of the return of an income but beyond the due date prescribed Under the respective provident fund and ESI laws is not sustainable in law. In the result, appeal of the assessee is allowed." Since in the instant case the assessee admittedly has deposited the employees' contribution to PF & ESI before the due date of filing of the income tax return, therefore, respectfully following the decisions cited (supra), I hold that the Ld. CIT(A) is not justified in sustaining the adjustment made by the A.O-CPC.” 3. Similar grounds with different amounts and assessment years have been raised in other appeals but however, the sum & substance and the issues involved in all the appeals are identical.

11 4. Before us, at the outset, Learned AR submitted that the sole grievance of the assessee is confirming the additions on account of delay in deposit of employee’s contribution towards provident fund and ESI fund.

12 6. Learned Sr. DR on the other hand supported the order of lower authorities and also placed reliance on the decision of Delhi Tribunal in the case of Vedvan Consultants Pvt. Ltd. vs DCIT in ITA No.1312/Del/2020 dated 26.08.2021. order He also submitted that the amendment brought out by Finance Act 2021 would be applicable to the present case 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 his employees to which the provisions of sub clause (x) of Clause (24) of Section 2 applies.

“In view of the judgement of the Division Bench of Delhi High Court in Commissioner of Income Tax versus AIMIL Limited, (2010) 321 ITR 508 (Del.) the issue is covered against the Revenue and, therefore, no substantial question of law arises for consideration in this appeal.

13 The legislative intent was/is to ensure that the amount paid is allowed as an expenditure only when payment is actually made. We do not think that the legislative intent and objective is to treat belated payment of Employee’s Provident Fund (EPD) and Employee’s State Insurance Scheme (ESI) as deemed income of the employer under section 2(23)(x) of the Act.” 8. As far as reliance by Ld. Sr. 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 01st April 2021 and will prospectively apply in relation to the assessment year 2021-22 and subsequent assessment year. In such a situation, we are of the view that the amendment brought out by Finance Act, 2021 does not apply to the assessment year under consideration.

14 contended that the assessee has deposited the contribution after the filing of the return of income.

15 Acts. However, typographical error occurred in the Tax Audit Report for which the relevant facts were placed before the Ld.CIT(A) as well. The relevant facts have also placed on record before the Tribunal as well.

Order pronounced in the open court on 18.05.2022.

Sd/- Sd/-

(PRADIP KUMAR KEDIA) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER

Date:-18.05.2022 *Amit Kumar* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI