TMI Blog2021 (5) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... l where it can direct the assessee for production of any such document. We make it clear in addition to all this that the assessee's clinching fact supporting the acquisition of the corresponding fixed assets qua its depreciation claim has nowhere been challenged on merits. We thus affirm the CIT(A)'s findings on this first issue. Disallowance of employees provident fund's delayed payment - Addition u/s 2(24)(x) r.w.s. 36(1)(va) r.w.s.43B - CIT-A deleted the addition on the ground that the necessary compliance had been made before the due date of filing of the return - HELD THAT:- We find no merit in the Revenue's instant arguments as well since the Explanatory Memorandum to Finance Bill, 2021 has clarified to the effec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hips Pvt. Ltd. [ 2015 (9) TMI 79 - DELHI HIGH COURT] holds that the same is a curative proviso having retrospective effect. There is hardly any dispute that the said amended proviso; to be read in light of Section 201(1) first proviso, stipulates that the impugned statutory provision does not apply in case the assessee concerned is not the assessee in default for having not deducted TDS qua the corresponding expenditure payments. We thus, restore the instant issue back to the Assessing Officer to be examined afresh in light of Section 40(a)(ia) second proviso r.w.s. 201(1) first proviso in accordance with law. The assessee is directed to file all the necessary details to be followed by three effective opportunities of hearing. Disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appreciating that as per explanation to clause (va) of subsection (1) of section 36 of the Act the due date is defined as the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued there under or under any standing order, award, contract of service or otherwise. Therefore the due date for filing of return does not have any relevance for disallowance u/s. 36(1)(va) of IT Act. iv. The learned CIT(A) erred in deleting the disallowance made U/s. 40(a)(ia) of the Act, amounting to ₹ 10,88,067/- in respect of delayed payment of TDS on interest without appreciating that the intention of legislature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, it is held that the disallowance of depreciation is not called for when the appellant had substantiated the claim with sufficient proof. I, therefore, direct the Assessing Officer to delete the disallowance of depreciation of ₹ 2,08,73,301/-. The assessee has placed strong reliance on the CIT(A)'s action deleting the impugned depreciation disallowance. 3.1. We have heard rival submissions. Coming to the Revenue's sole substantive argument that the CIT(A) has admitted the additional evidence in violation of Rule 46A of the Income Tax Rules, we do not find any such admission of additional evidence under the sub-rule (1) to (3). We further observe that even if it is taken as an instance of assessee having filed its de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anatory Memorandum to Finance Bill, 2021 has clarified to the effect that the employees' provident funds payment issue comes u/s. 36(1)(va) of the Act only but the same is applicable from 01-04-2021 than having any retrospective effect. We hold in view of all these facts that the CIT(A) has rightly deleted the impugned employees provident fund disallowance of ₹ 10,06,303/- made by the Assessing Officer. 5. The Revenue's third substantive ground seeks to revive the Assessing Officer's action invoking Section 40(a)(ia) disallowance of ₹ 10,88,067/- on account of assessee's failure to deduct TDS. Suffice to say, it is an admitted fact that no TDS had been deducted at the assessee's behest. The CIT(A)'s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue back to the Assessing Officer to be examined afresh in light of Section 40(a)(ia) second proviso r.w.s. 201(1) first proviso in accordance with law. The assessee is directed to file all the necessary details to be followed by three effective opportunities of hearing. 6. Lastly comes Revenue's fourth substantive ground seeking to revive Section 80G donation disallowance of ₹ 6,60,916/- alleging that the same violates Rule 46A(3) of the Income Tax Rules on account of admission of additional evidence in lower appellate proceedings. 6.1. We find that our reasoning qua the Revenue's first and foremost substantive grounds in preceding paragraphs also applies mutatis mutandis herein as well since there is no indication that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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