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2022 (4) TMI 36 - AT - Income TaxDisallowance relating to PF & ESIC contribution - addition u/s 36(1)(va) r.w.s.2(24)(x) - scope of applicability of the amendments that have been made available on the statue vide the Finance Act, 2021, i.e, “Explanation 5” to Section 43B and “Explanation 2” to Section 36(1)(va) - HELD THAT:- We are of the considered view, that as the amendments made available on the statue vide the Finance Act, 2021 i.e “Explanation 5” to Section 43B and “Explanation 2” to Section 36(1)(va) are applicable w.e.f 01.04.2021, i.e, from A.Y 2021-22 onwards, therefore, the same would not have any bearing on the case of the assessee before us, i.e, for A.Y 2011-12. Accordingly, we, herein conclude, that as the employees contributions to PF and ESI was deposited by the assessee before the “due date” of filing of its return of income for the year under consideration, therefore, the same being saved by the provisions of Sec. 43B of the Act could not have been disallowed by the A.O. We, thus, in the backdrop of our aforesaid deliberations set-aside the order of the CIT(A) and vacate the disallowance made by the A.O. Ground of appeal No. 1 is allowed in favour of assessee. Inadmissible expenses u/s 14A r.w.r.8D - HELD THAT:- We are unable to persuade ourselves to subscribe to the disallowance worked out by the Assessing Officer u/s.14A of the Act, i.e, de-hors any exempt dividend income having been earned by the assessee during the year under consideration. We, thus, direct the Assessing Officer to vacate the disallowance made by him u/s.14A r.w.r 8D. Thus, the Ground of appeal No.2 raised in appeal by the assessee is allowed
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