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2022 (1) TMI 933 - AT - Income TaxDisallowance of Employees’ contribution to PF & ESI not credited before the due date of payment under respective Acts - Scope of amendment made by the Finance Act, 2021 to Section 36(1)(va) r.w.s. 43B - HELD THAT:- As decided in case of M/s.Adyar Ananda Bhavan Sweets India Pvt. Ltd [2021 (12) TMI 558 - ITAT CHENNAI] payment of employees contribution in regard to PF & ESI if made before the due date of filing of return of income u/s.139(1) of the Act, the same is allowable as deduction as per the provisions of Section 2(24)(x) r.w.s. 36(1)(va) r.w.s. 43B. For scope of amemdment as before insertion of Explanation 2 to Section 36(1)(va) of the Act, there is ambiguity regarding due date of payment of employees’ contribution on account of provident fund and ESI, whether the due date is as per the respective acts or up to the due date of filing of return of income of the assessee - it is clear that the amendment brought in the statute i.e., by Finance Act, 2021, the provisions of Section 36(1)(va) r.w.s. 43B of the Act amended by inserting Explanation 2 is prospective and not retrospective. Hence, the amended provisions of Section 43B r.w.s. 36(1)(va) of the Act are not applicable for the assessment year 2018-19 but will apply from assessment year 2021- 22 and subsequent assessment years. Hence, this issue of assessee’s appeal is allowed.
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