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2022 (12) TMI 208 - AT - Income TaxLate deposit of Provident Fund and ESI - Scope of amendment effected by Finance Act, 2021 to Sections 36(1)(va)/43B - HELD THAT:- As far as the present forum is concerned, there are consistent orders of the ITAT Chandigarh Benches interpreting the relevant provisions wherein it has held that the amendments carried out in the relevant provisions is prospective in nature and not retrospective. Finance Act, 2021 has added Explanation 5 to Section 43B and Explanation 2 to Section 36(1)(va). The tax authorities have consistently held these to be clarificatory in nature and hence its applicability is retrospective. However, consistently by various orders Co-ordinate Benches have repeatedly held the amendments to be prospective in nature. While so holding, decisions of the jurisdictional High Court in the case of CIT Vs. Nuchem Limited. [2010 (2) TMI 959 - PUNJAB AND HARYANA HIGH COURT] and CIT Vs. Hemla Embroidery Mills Pvt. Ltd. [2013 (2) TMI 41 - PUNJAB AND HARYANA HIGH COURT] have been considered. It has been held that additions by way of disallowance cannot be made or sustained on the strength of the amendment effected by Finance Act, 2021 to Sections 36(1)(va)/43B of the Act as the legal position thereon is very clear - Decided in favour of assessee.
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