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2021 (11) TMI 421 - AT - Income TaxDelayed deduction of the employees’ contribution of PF and ESI - scope of amendment by Finance Act, 2021 to section 36[1][va] and 43B - HELD THAT:- As in view of judgment in the case of Essae Teraoka Pvt. Ltd [2014 (3) TMI 386 - KARNATAKA HIGH COURT], the employees’ contribution paid before the due date of filing of the return u/s 139(1) of the I.T.Act is to be allowed as deduction u/s 43B of the I.T.Act. Therefore, the only issue to be decided in the instant case is whether the amendment to section 36(1)(va) and 43B of the I.T.Act by the Finance Act, 2021 is prospective or not. Since as categorically held that the amendment is prospective and not retrospective in operation, the learned Standing Counsel’s plea does not have any merit. In the instant case, the assessment year being 2019- 2020, the amendment by Finance Act, 2021 to section 36(1)(va) and 43B of the I.T.Act does not have application. Therefore, the A.O. is directed to delete the disallowance - Decided in favour of assessee.
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