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2021 (11) TMI 679 - AT - Income TaxLate remittance of employees’ contribution of PF and ESI - As contended that assessee has paid the employees’ contribution prior to the due date of filing of return under section 139(1) - whether the amendment to section 36(1)(va) and 43B of the I.T.Act by the Finance Act, 2021 is prospective or not? - HELD THAT:- As in view of the Hon’ble Karnataka High Court judgment in the case of Essae Teraoka Pvt. Ltd v. DCIT[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 43 - 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 - Decided in favour of assessee.
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