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2022 (6) TMI 224 - AT - Income TaxDelayed employees contribution to Provident Fund and ESI - sum not remitted before due date prescribed u/s. 36(1)(va) but before the due date of filing of income tax returns u/s. 139(1) - HELD THAT:- It is not in dispute that assessee had remitted the employees' contribution to PF & ESI much before the due date of filing of return u/s. 139(1) of the Act, though the same has been remitted belatedly beyond the due date specified under the respective PF & ESI Acts. We find that this issue is no longer res integra in view of the recent decision of the Co-ordinate Bench of this Tribunal in the case of Kalpesh Synthetics Pvt. Ltd [2022 (5) TMI 461 - ITAT MUMBAI] We find that the amendment has been brought in the statute only from A.Y. 2021-22 and onwards which is very clear from Explanatory Memorandum of Finance Act, 2021 issued by the CBDT. Hence, we hold that the amendment brought in Section 36(1)(va) of the Act is to be construed only as prospective in operation and cannot be applicable for the year under consideration. Reliance in this regard is also placed on the decision of Adyar Ananda Bhavan Sweets India Pvt. Ltd. [2021 (12) TMI 558 - ITAT CHENNAI]. We find that the law prevailing prior to A.Y. 2021-22 would rule the field and the case laws rendered by various High Courts would rule the field. Prior to the amendment, the Hon'ble Jurisdictional High Court in the case of CIT vs. Ghatge Patil Transport Ltd.[2014 (10) TMI 402 - BOMBAY HIGH COURT] had held that employees contribution to PF & ESI if remitted within the due date prescribed u/s. 139(1) of the Act for filing the income tax returns, would be allowed as deduction u/s. 43B of the Act. We also find that this issue has been decided in favour of the assessee after considering various decisions of Hon'ble Supreme Court, High Court and this Tribunal in the case of Forcepoint Software Consulting India P. Ltd. [2022 (6) TMI 95 - ITAT MUMBAI] for A.Y. 2019-20 dated 27/04/222. In view of the aforesaid judicial precedents in favour of the assessee, the grounds raised by the assessee are allowed.
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