TMI Blog2022 (3) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... 2021 is concerned, notes on clauses to the Finance Bill 2021 clearly states that the amendment will take effect from 1st April 2021 and will 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. When two judgments are available giving different views, then the judgment which is in favour of the assessee shall apply as held in case of Vegetable Products Ltd. [ 1973 (1) TMI 1 - SUPREME COURT] no disallowance u/s 36(1)(va) of the Act is warranted in the present case. We therefore direct the AO to delete the addition. Thus the assessee s ground is allowed. - ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PF/ESI by invoking the provision of Section 36(1)(va) of the Act. 5. Aggrieved by the order of AO, assessee carried the matter before the NFAC who vide order dated 15.09.2021 in Appeal No. CIT(A), Delhi-7/10116/2020-21 dismissed the appeal of the assessee. Aggrieved by the order of NFAC, assessee is now in appeal and has raised the following grounds: 1. That the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, New Delhi has erred both in law and on facts in upholding the addition under section 36(1)(va) of ₹ 3,58,716/- on account of delay in deposit of employees contribution under the relevant act and ₹ 55,00,351.00 on account of delay in deposit of Provident Fund Contribution without consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the contribution from employees by the date for filing return of income in order to claim the deduction under the Act. This amendment was curative in nature, that deletion of the said provisio made it clear that the law was enacted to ensure that the payments towards PF, ESI etc contributions must be made before furnishing the return of income. 3. That the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, New Delhi has further erred both in law and on facts in upholding the addition of under section 36(1)(va) of ₹ 58,59,067/- on account of delay in deposit of employees contribution under the relevant act without appreciating the fact the case laws and judgments quoted by learned Commissioner of Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 58,59,067/- on account of delay in deposit of employee s contribution towards provident fund and ESI fund. 8. Before us, Learned AR submitted that addition of ₹ 58,59,067/- has been made in the intimation issued by CPC, Bangalore u/s 36(1)(va) of the Act for the reason that the contribution received towards PF/ESIC by the assessee from its employees was not deposited before the due date. He submitted that though there has been delay in deposit of PF/ESIC Contributions but all the contributions received by the assessee from its employees have been deposited with the appropriate authorities before the filing of return of income by the assessee. He therefore submitted that since the amounts have been deposited before the filing of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted by Learned DR. We find that the various Benches of the Tribunal at Delhi and other Tribunal have held that the delayed deposits of PF ESIC before the date of filing of return is an allowable expenditure and for which reliance was placed on the decision of Hon ble Delhi High Court in the case of AIMIL Ltd. (supra). As far as reliance by Learned 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 1st April 2021 and will 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 ye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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