TMI Blog2021 (11) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... from the Notes on Clauses at the time of introduction of the Finance Act, 2021, specifically stating the amendment being applicable in relation to assessment year 2021-22 and subsequent years. Therefore the addition, we hold, cannot be made on the strength of the amendment effected by Finance Act 2021 to section 36(1)(va)/43B. Also it is an admitted position that the jurisdictional High Court has in various decisions held that employees contribution to ESI PF is allowable if paid by the due date of filing return of income u/s 139(1) - we hold that the claim of employees contribution to ESI and PF as per section 36(1)(va) of the Act cannot be denied in the impugned year, i.e. 2019-20 on the basis of amendment made to the section by Fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the due date of filing of return of income u/s 139(1) of the Act. That the Hon'ble Jurisdictional High Court in various cases had interpreted the provisions of section 36(1)(va) of the Act to hold that the employees contribution to ESI and PF paid before the due date of filing of return of income u/s 139(1) of the Act was allowable as deduction. There is no dispute vis- -vis the aforesaid. The Revenue Authorities below have made the impugned adjustment on the basis of amendment to section 36(1)(va) and section 43B of the Act, which deals with the allowability of the employees and employers contribution respectively to ESI and PF, effected by Finance Act, 2021 to the effect that the due date for payment of employers contribution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to ESI PF is allowable if paid by the due date of filing return of income u/s 139(1) of the Act. The jurisdictional High Court has held so in the following cases: 1) CIT Vs. Nuchem Limited, ITA No.323 of 2009 2) CIT Vs. Hemla Embroidery Mills Pvt. Ltd.(2014), 366 ITR 167 5. In view of the above, we hold that the claim of employees contribution to ESI and PF as per section 36(1)(va) of the Act cannot be denied in the impugned year, i.e. 2019-20 on the basis of amendment made to the section by Finance Act 2021. The order of the Ld.CIT(A) upholding the said disallowance to the tune of ₹ 7,42,749/- is therefore set aside and the AO is directed to allow the claim of the assessee.. 6. In the result, the appeal of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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