TMI Blog2022 (4) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 to section 36(1(va) by the Finance Act, 2021 w.e.f. 01.04.2021 is considered to be prospective in nature as per the decision of the co-ordinate Bench of ITAT., Chennai in [ 2021 (12) TMI 558 - ITAT CHENNAI] where it was held that insertion of Explanation 1 to said section cannot be considered as retrospective in nature and thus, belated payment of employees contribution to PF ESI after due date specified 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) - Decided in favour of assessee. - I.T. A. No. 117/Chny/2022 - - - Da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o all proceedings in respect of courts and tribunals across the country on account of spread of Covid-19 infections w.e.f. 15.03.2020, till further orders and said general exemption has been extended from time to time. We further noted that delay noticed by the Registry pertains to the period of general exemption provided by the Hon'ble Supreme Court extending limitation period applicable for all proceedings before Courts and Tribunals and thus, considering facts and circumstances of the case and also in the interest of natural justice, we condone delay in filing appeal filed by the assessee and admitted for adjudication. 5. The assessee has raised following grounds of appeal:- 1. The order of Commissioner of Income Tax (Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- was disallowed by CPC, Bangalore. The assessee carried the matter in appeal before the first appellate authority and the learned CIT(A) for reasons stated in his appellate order partly allowed appeal filed by the assessee, where he has confirmed disallowance of ₹ 46,12,420/- made by the Assessing Officer towards not depositing of employee s contribution of PF ESI u/s. 2(24)(x) r.w.s 36(1)(va) of the Income Tax Act, 1961, but paid after due dates specified under the relevant Acts. Aggrieved by the learned CIT(A) order, the assessee is in appeal before us. 7. The learned A.R for the assessee submitted that the Assessing Officer has disallowed employee s contribution to statutory funds on the ground that although the assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dt. 24.07.2015, and held that if employees contribution to PF ESI is remitted before due date for filing of return of income cannot be disallowed, even though such remittance was made beyond due date specified under relevant statutes. In this case, the assessee claims that it has remitted employees contribution to PF ESI on or before due date specified u/s.139(1) of the Act, for filing return of income. The learned CIT(A), after considering relevant facts and following clarificatory amendments made by Finance Act, 2021 to section 36(1)(va) and section 43B rejected the arguments advanced by the assessee and confirmed disallowance made by the Assessing Officer as said late payments are not covered under section 43B of the Act. we find th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Explanation 2 is prospective and not retrospective. Hence, the amended provisions of Section 43B r.w.s. 36(1)(va) of the Act are not applicable for the assessment year 2018-19 but will apply from assessment year 2021-22 and subsequent assessment years. Hence, this issue of assessee s appeal is allowed. 10. In this view of the matter and consistent with the view taken by the co-ordinate Bench, we direct the Assessing Officer to delete additions made towar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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