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TMI Blog2021 (12) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 disallowances of Rs. 7,13,663/- for A.Y.2018-2019 and Rs. 8,82,045/- for A.Y.2019-2020 along with interest of Rs. 96,526/- and Rs. 56,674/- charged u/s.234A, 234B & 234C of the Act by the AO. 3. Against the above order of AO, the assessee preferred first appeals before the CIT(A), however, the CIT(A) sustained the additions made by the AO for the respective assessment years under consideration while dismissing both the appeals of the assessee. 4. Further feeling aggrieved, the assessee is in appeals before us. 5. Having heard the parties an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 divergent views on the same issue, out of which some are in favour of the assessee and some are against the assessee. The ld. CIT(A) further observed that the judgments and order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re 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 identical issue qua applicability of the amendment to Section 36(1)(va) and Section 43B of the Act, by inserting Explanations by the Finance Act, 2021 and clearly held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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