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2022 (5) TMI 1271 - AT - Income TaxDelayed remittance of employees contribution to PF & ESI u/s.36(1)(va) - scope of amendment brought u/s.36(1)(va) - HELD THAT:- We find that an identical issue had been considered by the co-ordinate Bench of ITAT Chennai in the case of M/s.Adyar Ananda Bhavan Sweets India Ltd., [2021 (12) TMI 558 - ITAT CHENNAI] and by considering the amendment to the provisions of Sec.36(1)(va) of the Act, by the Finance Act, 2021, held that amendment brought u/s.36(1)(va) of the Act, is applicable from assessment year 2020-21 onwards and thus, payments made to employees’ contribution to PF & ESI beyond due date specified under the respective Act, but within due date for filing of return of income u/s.139(1) of the Act, is an allowable deduction u/s.36(1)(va). Thus we are of the considered view that payments made to employees’ contribution to PF & ESI beyond due date specified under the respective Acts, but within due date for filing of return of income u/s.139(1) of the Act, is an allowable deduction u/s.36(1)(va) of the Act and thus, we direct the Assessing Officer to examine the case of the assessee with reference to date of payment and in case, the Assessing Officer finds that the assessee has remitted the employees’ contribution to PF & ESI on or before due date for filing return of income u/s.139(1) of the Act, then the Assessing Officer is directed to delete the additions made u/s.36(1)(va) of the Act - Decided in favour of assessee.
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