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2024 (4) TMI 53 - ITAT NAGPURAllowability of Employee’s Contribution - Adjustment u/s 143 - late deposit of employee welfare fund by misunderstanding actual legal position - assessee had filed a rectification application before the AO i.e. ACIT(CPC) which was rejected as disallowance made by AO on the ground that employee’s contribution towards ESI/PF was not made within due date and admitted in the Audit Report, cannot be said to be a mistake apparent from the record HELD THAT:- The Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd [2022 (10) TMI 617 - SUPREME COURT] as held that the non-obstante clause has to be understood in the context of the entire provision of Section 43B which is to ensure timely payment before the returns are filed, of certain liabilities which are to be borne by the assessee in the form of tax, interest payment and other statutory liability. In the case of these liabilities, what constitutes the due date is defined by the statute. Once Hon’ble Supreme Court has laid down a law as per Article 141 of the Constitution of India, it is law of the land. Therefore, the law declared by the Hon’ble Supreme Court is applicable from the inception of the relevant provision. As decided in N. Kuppanna Gounder[1974 (8) TMI 96 - MADRAS HIGH COURT] that when a law is declared it has effect not only from the date of the decision but also from the inception of the statutory provision. Thus, the law declared by Hon’ble Supreme Court on the issue of allowability of Employee’s Contribution is applicable from the date of the inception of the relevant section 36(1). Appeal of the assessee is dismissed.
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