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2022 (4) TMI 533 - AT - Income TaxDisallowance made in respect of PF & ESI in respect employee’s contribution u/s. 36(1)(va) r.w.s. 2(24)(x) - assessee has not remitted the employees’ contribution on the due date as prescribed by the PF & ESI Act - HELD THAT:- We find that the CIT(A) erred in referring to the Amendment brought in by Finance Act 2021 w.e.f. 01.04.2021 which inserted an Explanation to section 36(1)(va) and section 43B of the Act and erred in holding it as clarificatory and so, retrospective in nature. Whereas we note that it is only prospective in nature and cannot disturb the binding judicial precedents in favour of assessee. However, we find that any way this issue is no longer res integra as held by this Tribunal in the case of Lumino Industries Ltd. [2021 (11) TMI 926 - ITAT KOLKATA] wherein assessee’s favour view was taken by the Tribunal after holding that the amendment brought in by Finance Act, 2021 w.e.f 1.04.2021 is prospective in operation and so will be in force from AY 2021-22 onwards and not retrospective. Assessee is to be allowed deduction in respect of employees’ contribution to PF & ESI provided these are paid before the due date of filing the return of income. On the basis of records before us we are unable to ascertain the date of payments of these dues. Therefore, we are restoring the matter back to the file of the AO to examine and allow the same if these are paid before due date of filing the return of income - Decided in favour of assessee.
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