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TMI Blog2021 (12) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 are relating to the deposit of employees' contributions qua ESI & PF after the due date as prescribed in the relevant Acts, however, before the due date of filing of return of income u/s.139(1) of the Act, resulting into making disallowance of Rs. 3,30,067/- for the assessment year under consideration. And, ground No.4 is with regard to disallowance of claim of the assessee u/s.80C of the Act of Rs. 1,10,710/-. 3. Against the above order of AO, the assessee preferred first appeal before the CIT(A), however, the CIT(A) sustained the addition made by the AO while dismissing the appeal of the assessee. 4. Further feeling aggrieved, the assessee is in appeal before us. 5. Having heard the parties and perused the material available on reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er :- Section 36(1)(va)-"Explanation 2.-For the removal of doubts, it is hereby clarified that the provisions of section 43B shall not apply and shall be deemed never to have been applied for the purposes of determining the "due date" under this clause." Section 43B- "Explanation 5.-For the removal of doubts, it is hereby clarified that the provisions of this section shall not apply and shall be deemed never to have been applied to a sum received by the assessee from any of his employees to which the provisions of sub-clause (x) of clause (24) of section 2 applies." 5.1 We may observe that the ld. CIT(A) in its order at para no. 7.15 itself has observed that the issue has been highly contentious and different High Courts have taken di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee on the aspect under consideration hence, first determination of the Ld. CIT(A) qua non-applicability of the provisions of Section 43B of the Act to the employee's share qua PF & ESI, is unsustainable. 5.3 Now, coming to the second aspect/determination made by the CIT(A) to the effect that the amendment made in Section 36(1)(va) and 43B of the Act by Finance Act 2021 has to be considered as clarificatory in nature and having retrospective effects, therefore would be applicable to the previous assessment years as well. We may observe that various benches of the ITAT including Hyderabad Bench in the case of Value Momentum Software Services Pvt. Ltd. (ITA No.2197/Hyd/2017 decided on 19.05.2021), have taken into consideration the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) stands deleted. Thus, grounds No.1 to 3 are allowed. 6. Now, coming to the ground No.4, which pertains to affirmation of disallowance of claim u/s.80C of the Act. The assessee has submitted that though the assessee has filed relevant documents as appears in Paper Book at Pages No.49 & 50 in support of its claim u/s.80C of the Act, however, the ld. CIT(A) did not consider the same and wrongly or inadvertently observed in the impugned order that the appellant has not given any submissions and evidences regarding the disallowance of deduction u/s.80C of the Act, therefore, the decision of ADIT, CPC to confirm the disallowance of Rs. 1,10,710/- u/s.80C of the Act is not disturbed. The ld. DR did not refute the claim of the assessee. 6.1 Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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