2021 (11) TMI 634 - ITAT BANGALORE - Income Tax

Head Note / Extract:
Disallowance u/s 36(1)(va) and 43B - delayed employees’ contribution paid - scope of amendment to section 36(1)(va) and 43B - HELD THAT:- As 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 - Therefore, the only issue to be decided in the instant case is whether the amendment to section 36(1)(va) and 43B 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 2018- 2019, 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 of ₹ 3,23,886. - Decided in favour of assessee.