TMI Blog2022 (1) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... under respective Act, but before due date for filing of return of income u/s.139(1) of the Act is allowable deduction. We direct the Assessing Officer to delete additions made towards disallowance of employees contribution to PF ESI u/s.36(1(va) r.w.s. 2(24)(x) of the Act for both assessment years. Disallowance of expenses relatable to exempt income u/s.14A r.w. Rule 8D - absence of exempt income - HELD THAT:- Hon'ble Jurisdictional High Court of Madras in the case of M/s. Redington India Ltd. [ 2017 (1) TMI 318 - MADRAS HIGH COURT] had considered identical issue and held that in absence of exempt income, no disallowance can be made towards expenses relatable to said exempt income. In this case, facts borne out from records c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner of Income Tax (Appeals) failed to appreciate that the order of without jurisdiction. 3. For that the Commissioner of Income Tax (Appeals) erred in upholding the disallowance of ₹ 76,83,062/- being belated remittance of employees contributions to Employee State Insurance uls.2(24)(x). 4. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the employees contributions to Employee State Insurance were remitted before the due date for filing the return of income of the appellant for the impugned assessment year. 5. For that without prejudice to the above, no disallowance uls.36(1)(va) on account of the belated remittance of employees contributions to Employee State Insurance is war ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for assessment year 2014-15 is barred by limitation for which necessary petition for condonation of delay explaining the reasons for the delay has been filed. As per petition filed by the assessee, we find that assessee company is undergoing severe financial crisis, assessee could not file appeal within the time allowed under the Act, and hence, prayed that delay may be condoned. 4. Having heard learned DR and considered petition filed by the assessee for condonation of delay, we are of the considered view that reasons given by assessee for not filing the appeal within the time allowed under the Act, comes under reasonable cause as provided under the Act, for condonation of delay and hence, delay in filing of above appeal is condoned an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration from ground no. 3 to 5 of assessee appeal is additions made towards disallowance of employees contribution to PF ESI u/s. 36(1(va) r.w.s. 2(24)(x) of the Act. The learned DR, at the time of hearing submitted that this issue is covered in favour of the assessee by the decision of Hon ble Jurisdictional High Court of Madras in the case of CIT Vs. M/s. Industrial Security Intelligence India Pvt. Ltd., in TCA No.585 586 of 2015 dated 24.07.2015, where it was held that employees contribution to PF ESI remitted beyond due date specified under respective Act, but within due date for filing of return of income u/s.139(1) of the Act, is allowable deduction. However, she strongly supported orders of the authorities below in light of am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As noted by Hon ble Supreme Court an amendment made to a taxing statute can be said to be intended to remove hardship only of the assessee and not of the Department. Imposing of a retrospective levy on the assessee would be caused undue hardship and for that reason Parliament specifically chose to make the proviso affective from a particular date. In the present case also, the amendment brought out by Finance Act, 2021 w.e.f. 01.04.2021 i.e. for and from assessment year 2021-22 of Explanation-2 to s. 36(1)(va) of the Act and not retrospectively. 6.9 Thus, from the above, it is clear that the amendment brought in the statute i.e., by Finance Act, 2021, the provisions of Section 36(1)(va) r.w.s. 43B of the Act amended by inserting Expla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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