TMI Blog2022 (2) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... ations but before the time for filing return u/s. 139(1) - In our opinion, this issue is no more res integra in view of several judgments allowing deduction u/s. 36(1)(va) of employees' share of contribution deposited after due date under the respective Acts but before the date prescribed u/s. 139. Finance Act, 2021 has inserted Explanation 2 below section 36(1)(va) providing that the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the position of law as set out by various Hon'ble High Courts including the one in CIT vs. Nipso Polyfabriks Ltd [ 2012 (11) TMI 592 - HIMACHAL PRADESH HIGH COURT] squarely applies to the facts and circumstances of the instant case, thereby not warranting any disallowance since the amount in question was admittedly deposited before due date u/s. 139(1) of the Act. The addition is therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the disallowance in terms of section 36(1)(va) of the Act. Aggrieved thereby, the assessee has approached the Tribunal. 3. We have heard both the sides in Virtual Court and gone through the relevant material on record. It is an admitted position that the assessee did deduct employees' share of EPF and ESI but paid the same after the due date under the respective legislations but before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te under this clause w.e.f. 01.04.2021. The effect of this amendment is that if the amount of employees' contribution towards EPF, ESI, etc is delayed by an employer beyond the due date under the respective Acts, the disallowance will be called for notwithstanding the fact that it was deposited before the due date u/s. 139 of the Act. The Memorandum explaining the provisions of the Finance Bil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e employees' share of contribution to EPF/ESI etc., amounting to ₹ 2,10,940/-, which was disallowed by the AO. The ld. CIT(A) sustained the disallowance. 6. Having heard both the sides and gone through the relevant material on record, it is found as an admitted position that the facts and circumstances of this year are mutatis mutandis similar to those of the preceding year. Following ..... X X X X Extracts X X X X X X X X Extracts X X X X
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