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2022 (4) TMI 715 - AT - Income TaxBelated remittance of employee’s contribution to PF & ESI - HELD THAT:- In this case, the assessee claims that it has remitted employees contribution to PF & ESI on or before due date specified u/s.139(1) of the Act, for filing return of income. CIT(A), after considering relevant facts and following clarificatory amendments made by Finance Act, 2021 to section 36(1)(va) and section 43B rejected the arguments advanced by the assessee and confirmed disallowance made by the AO as said late payments are not covered under section 43B of the Act. We find that amendment brought to the statute by insertion of Explanation 1 to section 36(1(va) by the Finance Act, 2021 w.e.f. 01.04.2021 is considered to be prospective in nature as per the decision of the co-ordinate Bench of ITAT., Chennai in [2021 (12) TMI 558 - ITAT CHENNAI] where it was held that insertion of Explanation 1 to said section cannot be considered as retrospective in nature and thus, belated payment of employees contribution to PF & ESI after due date specified under respective Act, but before due date for filing of return of income u/s.139(1) of the Act is allowable deduction - we direct the Assessing Officer to delete additions made towards disallowance of employees contribution to PF & ESI u/s.36(1(va) r.w.s. 2(24)(x) - Decided in favour of assessee.
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