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2022 (3) TMI 614 - AT - Income TaxAddition u/s 36 (a) (va) - contribution received from Employees in respect of PF & ESI which is deposited after the due date - Scope of amendment - HELD THAT:- As decided in M/S. RAMESH ELECTRIC WORKS, M/S. XO FOOTWEAR P LTD. VERSUS THE DCIT, CPC, BANGALORE [2022 (2) TMI 75 - ITAT DELHI] delayed deposits of PF & ESIC before the date of filing of return of income is an allowable expenditure and for which reliance was placed on the decision of Hon’ble Delhi High Court in the case of AIMIL Ltd [2009 (12) TMI 38 - DELHI HIGH COURT] Also amendment brought out by Finance Act 2021 is concerned, “notes on clauses” to the Finance Bill 2021 clearly states that the amendment will take effect from 1st April 2021 and will apply in relation to the assessment year 2021-22 and subsequent assessment year. In such a situation, we are of the view that since the assessment year under consideration is A.Y. 2018-19, the amendment does not apply to the assessment year under consideration - no disallowance was warranted in the present case. We, therefore direct the AO to delete the addition. Thus the assessee’s ground is allowed.
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