TMI Blog2021 (12) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... g the return of income under section 139(1) of the Act, then the assessee would be entitled to claim deduction. Therefore, the issue is decided in favour of the Assessee. Scope of amendment - The explanatory memorandum to the Finance Act, 2021 proposing amendment in section 36(1)(va) as well as section 43B is applicable only from 01.04.2021. These provisions impose a liability on an assessee and therefore cannot be construed as applicable with retrospective effect unless the legislature specifically says so - the aforesaid amendment is applicable only prospectively i.e., from 1.4.2021. We are therefore of the view that the impugned additions made under section 36(1)(va) of the Act deserves to be deleted. - Decided in favour of assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the aforesaid order of the Central Processing Centre (CPC), assessee filed appeal before the CIT(A) against the order dated 29.07.2020. With regard to employee s share of contribution to PF, the CIT(A) referred to the amendment made to section 36(1)(va) and 43B of the Act by the Finance Act, 2021. The Finance Act, 2021 has amended section 36, sub-section (1), in clause (va), by inserting Explanation-2 which reads thus: 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;'. The finance Act, 2021 also amended section 43B by inserting Explantion-5 there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income under subsection (1) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee along with such return. By virtue of insertion of Explanation 5 to this section, the provisions of the said section shall not apply and shall be deemed never to have been applied to asum received by the assessee from any of his employees to which the provisions of subclause (x) of clause (24) of section 2 applies. 5. The CIT(A) accepted that the Assessee had paid the employees share of contribution on or before the due date for filing return of income u/s.139(1) of the Act for the relevant AY. He was however of the view was of the view t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Finance Bill 2021 was only declaratory / clarificatory in nature and there therefore was applicable with retrospective effect by necessary intendment of deeming nature expressly stated therein. The CIT(A) finally upheld the action of the AO. 7. Aggrieved by the order of the CIT(A), the assessee is in appeal before the Tribunal. We have heard the rival submissions. We find that similar issue has been considered and decided in the following of judicial decisions: M/s Mahadev Cold Storage vs Jurisdictional AO - ITA.No.41 42/Agra/2021 M/s Essae Teraoka (P.) Ltd vs DCIT - [2014] 43 taxmann.com 33 (Karnataka) Anand Kumar Jain vs ITO - ITA NO 4192/MUM/2012 ValueMomentum Software Services Private Limited vs. DCIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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