TMI Blog2022 (5) TMI 1329X X X X Extracts X X X X X X X X Extracts X X X X ..... the said amendment cannot be applied in the instant case. Therefore, 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 of the Act, is hereby directed to be deleted and the ground of appeal is allowed. - ITA No. 395/Chd/2021 - - - Dated:- 28-4-2022 - SMT. DIVA SINGH , JUDICIAL MEMBER AND SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER Assessee by: Shri T. N. Singla , CA Revenue by : Smt Priyanka Dhar , Sr. DR ORDER Per Vikram Singh Yadav , Accountant Member This is an appeal filed by the assessee against the order of Learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 inserted w.e.f. assessment year 2021-22 onwards and have to be read prospectively and not retrospectively and various Benches of the Tribunal has been taking a consiste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, 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 the strength of the amendment effected by Finance Act, 2021 to Sections 36(1)(va)/43B of the Act as the legal position thereon is very clear. The departmental stand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osition 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 that employees' contribution to ESI and PF had been deposited well before the due date of filing of return of income u/s. 139(1) of the Act. We further note tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of adjustment while processing the return of income u/s. 143(1) of the Act, amounting to Rs. 3,41,858/- 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 of the Act, is hereby directed to be deleted and the ground of appeal is allowed. 7. Now coming to the additional ground raised by the assessee wherein the assessee is seeking to claim education cess to the tune of Rs. 2,85,849/- paid alongwith income tax as an allowable expenditure, it was submitted by the Ld. AR at the Bar that the assessee doesn't want to press the said ground of appeal and hence, the same is not admitted and dismissed as not pressed. In the resul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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