TMI Blog2022 (3) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... the amendment which has been brought in by the Finance Act, 2021 shall apply w.e.f. assessment year 2021-22 and subsequent assessment years and the impugned assessment year being assessment year 2018-19, the said amendment cannot be applied in the instant case. The addition made by way of adjustment while processing the return of income u/s 143(1) so made by the CPC towards the deposit of employees' contribution towards ESI and PF paid before the due date of filing of the return of income u/s.139(1) of the Act, is hereby directed to be deleted - Decided in favour of assessee. - ITA No. 353/Chd/2021 - - - Dated:- 2-3-2022 - Diva Singh, Member (J) And Vikram Singh Yadav, Member (A) For the Appellant : Ashwani Kumar and Bhavesh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In support, reliance was placed on decision of the Hon'ble Punjab Haryana High Court in the case of CIT Vs. Hemla Embroidery Mills (P) Ltd., 366 ITR 117 and the decision of the Hon'ble Supreme Court in the case of CIT Vs. Alom Extrusion Ltd., 319 ITR 306. It was further submitted that the aforesaid decisions have since been followed by the Hon'ble Punjab Haryana High Court in the case of CIT Vs. Mark Auto Industries Ltd., 358 ITR 43, CIT Vs. Kamal Family Trust (2013), 219 Taxman 81 and CIT Vs. Nuchem Limited, 59 Taxmann.com 455. It was submitted that the Ld. CIT(A) has relied upon the amendment brought in by the Finance Act, 2021 wherein Explanation-5 has been inserted. It was submitted that the said amendment has been inser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6(1)(va) and u/s. 43B of the Income Tax Act effected by the Finance Act, 2021 is applicable prospectively and not retrospectively. While coming to the said conclusion, the Benches have relied upon and read from the Notes on Clauses at the time of introduction of the Finance Act, 2021 and have held that the amendment is applicable in relation to the assessment year 2021-22 and subsequent years and not retrospectively. Thus, in view of this legal position as considered by the Coordinate Benches and taking note of the decisions of the jurisdictional High Court in the case of CIT Vs Nuchem Limited ITA 323 of 2009 and CIT Vs Hemla Embroidery Mills Pvt. Ltd. (2014) 366 ITR 167 we are of the view that the additions cannot be made or sustained on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the employees' contribution can be allowed as a deduction only if it had been paid within the prescribed due dates under the relevant Statutes and this position has been clarified by the aforesaid amendment. It was accordingly submitted that there is no infirmity in the order passed by the Ld. CIT(A) wherein he has sustained the disallowance made u/s. 143(1) of the Act, by the CPC on account of assessee's failure to pay the employees' contribution towards ESI and PF within the prescribed due dates as per section 36(1)(va) of the Act. He accordingly supported the order of the lower authorities. 6. We have heard the rival contentions and perused the material available on record. In the instant case, it is not in dispute t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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