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2022 (10) TMI 160 - AT - Income TaxDisallowance u/s 14A r.w. 8D - HELD THAT:- As assessee has not earned any exempt income which is not rebutted by the Revenue placing any cogent material on records. Assessee brought to our notice that the decision of the Co-ordinate Bench of the Tribunal rendered in the case of ACIT vs M/s. Hindustan EPC Company Ltd. [2022 (8) TMI 904 - ITAT DELHI] wherein decided issue in favour of assessee as held that the aforesaid Explanation cannot be presumed to be retrospective in operation. As a corollary, the law prevailing prior to the insertion of Explanation would continue to apply and shall not be guided by the Explanation being prospective. Late payment of employee’s contribution as per the Provident Fund Act - HELD THAT:- We find that the Revenue has not brought any contrary material to rebut the finding of Ld.CIT(A). Since the issue is otherwise decided in favour of the assessee by the judgement of Hon’ble Delhi High Court in the case of PCIT vs Pro Interactive Service (India) Pvt.Ltd. [2018 (9) TMI 2009 - DELHI HIGH COURT] held that legislative intent was/is to ensure that the amount paid is allowed as an expenditure only when payment is actually made. We do not think that the legislative intent and objective is to treat belated payment of Employee’s Provident Fund (EPD) and Employee’s State Insurance Scheme (ESI) as deemed income of the employer under section 2(23)(x) - Appeal of the Revenue is dismissed.
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