2021 (6) TMI 1059 - AT - Income Tax

ESI/PF disallowance - sum paid before the due date of filing sec. 139(1) return and after the due date prescribed in the corresponding statutes - scope of amendments in Sections 36(va) as well as 43B - HELD THAT:- As factual backdrop that the legislature has not only incorporated necessary amendments in Sections 36(va) as well as 43B vide Finance Act, 2021 to this effect but also the CBDT has issued Memorandum of Explanation that the same applies w.e.f. 1.4.2021 only. It is further not an issue that the forergoing legislative amendments have proposed employers contributions; disallowances u/s 43B as against employee u/s 36 (va) of the Act; respectively. See M/S MERCHEM LIMITED [2015 (9) TMI 560 - KERALA HIGH COURT], GUJARAT STATE ROAD TRANSPORT CORPORATION [2014 (1) TMI 502 - GUJARAT HIGH COURT],OUTH INDIA CORPORATION LTD. [1999 (10) TMI 44 - KERALA HIGH COURT], GTN. TEXTILES LTD. [2002 (10) TMI 9 - KERALA HIGH COURT] and JAIRAM AND SONS. [2003 (10) TMI 16 - KERALA HIGH COURT]

However, keeping in mind the fact that the same has been clarified to be applicable only with prospective effect from 1.4.2021, hold that the impugned disallowance is not sustainable - The impugned ESI/PF disallowance is directed to be deleted - Decided in favour of assessee.