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2022 (7) TMI 889 - AT - Income TaxDelayed employee contribution towards PF/ESI - amount deposited before the due date for filing of return of income or not? - scope of amendment in statute made by Finance Act, 2021 in Section 36(1)(va) and 43B - HELD THAT:- As in the instant appeal for ay: 2018-19, if the employee share of PF/ESI is deposited by employer to the credit of employee with the relevant fund maintained for PF/ESI before the due date of filing of return of income u/s. 139(1) of the 1961 Act, then the assessee shall be entitled for deduction u/s. 36(1)(va) of the 1961 Act. The assessee's counsel has neither filed tax-audit report nor filed challans, before the tribunal. Thus for limited purposes, we are directing AO to verify the challans evidencing deposit of aforesaid employee share of PF/ESI and that it was deposited before the due date prescribed for filing of return of income u/s. 139(1), before allowing claim of deduction u/s. 36(1)(va) of the 1961 Act. The assessee is directed to file before AO complete details/bifurcation of employees share of PF/ESI which was added to income of the assessee u/s. 36(1)(va) read with Section 2(24)(x) along with relevant paid challans, for verification. While passing the above order, we also note that several Division Benches of ITAT across Country have now passed appellate orders, even after considering the amendments made to Section 36(1)(va) and 43B of the 1961 Act by Finance Act, 2021, holding that if the employee share of PF/ESI is deposited by employer to the credit of employee with the relevant fund maintained for PF/ESI before the due date of filing of return of income u/s. 139(1) of the 1961 Act, then the tax-payer shall be entitled for deduction u/s. 36(1)(va) of the 1961 Act. The assessee succeeds in this appeal.
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