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2021 (11) TMI 761 - AT - Income TaxFailure to deposit the employees’ contribution to PF/ESI for having not paid the same on or before the prescribed due dates as per section u/s 36(1)(va) - addition made in the intimation made to the assessee u/s 143(1) - Scope of amendment to section 36(1)(va) and u/s 43B - HELD THAT:- We find that this issue has already been decided in INSTA EXHIBITIONS PVT. LTD [2021 (8) TMI 1235 - ITAT DELHI] AND M/S CRESCENT ROADWAYS PRIVATE LIMITED. [2021 (7) TMI 1265 - ITAT HYDERABAD] holding that the amendment to section 36(1)(va) and u/s 43B of the Act effected by the Finance Act 2021 is applicable prospectively ,reading from the Notes on Clauses at the time of introduction of the Finance Act, 2021, specifically stating the amendment being applicable in relation to assessment year 2021-22 and subsequent years. Therefore the addition, we hold, cannot be made on the strength of the amendment effected by Finance Act 2021 to section 36(1)(va)/43B. Also it is an admitted position that the jurisdictional High Court has in various decisions held that employees contribution to ESI & PF is allowable if paid by the due date of filing return of income u/s 139(1) - we hold that the claim of employees contribution to ESI and PF as per section 36(1)(va) of the Act cannot be denied in the impugned year, i.e. 2019-20 on the basis of amendment made to the section by Finance Act 2021. The order of the Ld.CIT(A) upholding the said disallowance is therefore set aside and the AO is directed to allow the claim of the assessee. - Decided in favour of assessee.
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