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2022 (9) TMI 923 - Income Tax
Delayed deposit of the employee’s share of contributions towards Provident fund (PF) and Employee’s State Insurance (ESI) - Scope of amendment - HELD THAT:- We find that the issue herein involved is squarely covered by the order passed by the Tribunal in the case of M/s Ind Synergy Limited [2022 (4) TMI 36 - ITAT RAIPUR] as held 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.
The insertion of “Explanation-2” to Section 36(1)(va) of the Act as had been made available on the statute vide Finance Act, 2021 would not assist the case of the revenue as the same is applicable w.e.f. 01.04.2021 and, thus, would not be applicable to the case of the assessee before us. Our aforesaid view is fortified by the judgment of the Hon’ble High Court of Delhi in the case of Pr. CIT-7 Vs. TV Today Network Ltd. [2022 (8) TMI 361 - DELHI HIGH COURT] We, thus, in terms of our aforesaid observations set-aside the order of the CIT(Appeals) and direct the AO to vacate the disallowance made by him u/s.36(1)(va) of the Act qua the delayed deposit of the employees share of contribution of EPF/ESIC. Assessee appeal allowed.