TMI Blog2021 (9) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... fore furnishing the return of income - thus we hold that employees contribution to PF ESI remitted before the due date of filing of return u/s 139(1), will be allowable as deduction - Decided in favour of assessee. - ITA No. 60/Chd/2021 - - - Dated:- 25-8-2021 - N. K. Saini , Vice President And R. L. Negi , Member ( J ) For the Appellant : T.N. Singla, C.A. For the Respondents : Ashok Khanna, Addl. CIT ORDER Per R. L. Negi , Judicial Member The present appeal has been filed by the assessee against the order dated 12/04/2021, passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi pertaining to the assessment year 2019-20, whereby the Ld. CIT(A) has dismissed the appeal filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) of the Act. 4. That the ld. CIT(A) has erred in upholding the decision of the AO regarding the deduction of Employees contribution to provident fund and ESI amounting to ₹ 3,18,265/- which was deposited before the due date of filing of return. 4. At the outset, the ld. counsel for the assessee submitted before us that the impugned order passed by the ld. CIT(A) is contrary to the settled position of law on the relevant issue. Since the assessee company had deposited the contribution received from its employees towards provident fund/ESI before the date of filing of return of income, the ld. CIT(A) ought to have set aside the action of the AO. The ld. counsel further relied on the following judgements to substantiate the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the date of filing of the assessment. The revenue has not disputed this fact. The Hon'ble jurisdictional High Court in the case of CIT vs M/s. Nipso Polyfabriks Ltd. [2013] 350 ITR 327 has held that the employees' contribution to the provident fund paid before the due date of filing of return of income cannot be disallowed. The relevant para of the judgement read as under:- The deletion of the second proviso to section 43B which specifically made a reference to section 36(1)(va) was curative in nature and, hence, would apply with retrospective effect from April 1, 1988. The second proviso to section 43B(b) specifically referred to the due date under section 36(1)(va) of the Act and as such, it cannot be urged that the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 2003, with effect from April 1, 2004, was clarificatory in nature and was to operate retrospectively. Thus, the assessee, for the assessment year 2003-04, was entitled to deduction in respect of the employer's and employees' contributions to the employees' State Insurance and provident fund as the 4 contributions had been deposited prior to the filing of the return under section 139. 9. Since the issue involved in the present appeal is identical to the issue involved in the cases discussed above and since the Hon'ble Jurisdictional High Court and the co-ordinate Bench of the Tribunal have decided the identical issue in favour of the assessee and the findings of the ld. CIT(A) are not in accordance with the ratio lai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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