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2022 (5) TMI 1172 - AT - Income TaxDelayed employees’ contribution of EPF & ESI - scope of amendment - HELD THAT:- There is no dispute between the parties regarding the date of deposit of PF & ESI, which clearly is beyond the prescribed date of deposit as applicable under the relevant section of the I.T. Act. Further, there is no dispute between the parties that the deposits were made before the filing of return of income for the relevant assessment year. As Relying on SAGUN FOUNDRY PRIVATE LIMITED VERSUS COMMISSIONER OF INCOME TAX, KANPUR [2016 (12) TMI 1479 - ALLAHABAD HIGH COURT] there has been amendment in section 36(1)(va) of the Act, and find that the said amendment is applicable w.e.f. 1.4.2021 and is prospective in nature and not retrospective. Allowed deduction towards employee contribution received by employer which was deposited late by employer beyond the time stipulated u/s 36(1)(va) , but before the due date as prescribed for filing of return of income u/s 139(1) of the 1961 Act, and there cannot be a class different now at this stage where the deduction is to be denied on the ground of strict interpretation of the provisions of Section 36(1)(va) , unless the amendment made by Finance Act, 2021 is made specifically applicable retrospectively from the date of insertion of the provision or any other specified earlier date in the Finance Act, rather on the other hand , the Memorandum to Finance Bill, 2021 has specifically made this amendment applicable from 01.04.2021 and specified that the same shall be made applicable from assessment year 2021-22 and subsequent assessment years. We are presently concerned with ay: 2005-06. - Decided in favour of assessee.
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