TMI Blog2022 (4) TMI 721X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2021 has to be construed as prospective and applicable for the period after 01.04.2021. It is held that this provision imposes a liability on the assessee and therefore, cannot be construed as applicable with retrospective effect since the legislature has not specifically said so. Since the assessee in the instant case has admittedly deposited the employee s contribution to PF ESI before the due date of filing of return of income, therefore, we are of the considered opinion that the ld. CIT(A) is not justified in sustaining the disallowance made by the CPC. We, therefore, direct the Assessing Officer to delete the disallowances in the hands of the assessee. - Decided in favour of assessee. - ITA No.74 And 75/Del/2022 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder consideration. (Tax Effect: ₹ 95,010/-) 3. Whether on the facts and in the circumstances of the case and position on law, the Education Cess and the Secondary and Higher Education Cess amounting to ₹ 20,428/- is a disallowable expenditure u/s 40(a)(ii) of the Income-tax Act, 1961. (Tax Effect: ₹ 6312/-) The above ground is an additional ground. 4. The appellant craves leave to add, delete, modify / amend the above grounds of appeal with the permission of the Hon ble appellate authority. 2.1 As can be culled out from the records and grounds of appeal, the solitary issue pressed in these appeals is regarding disallowance of ₹ 3,71,000/- and ₹ 3,07,475/- u/s. 36(1)(va) of the Act on account of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee in the instant cases has deposited the employee s contribution to PF ESI before the due date of filing of return, although the same has been paid after the dates specified in the relevant Act. 6. We find the issue stands decided in favour of the assessee by the following decisions : Sagun Foundry (P) Ltd., vs. CIT, 145 DTR 265 (All) has held in favour of the assessee and adjudged that; By way of First Proviso Section 43-B, an incentive/relaxation was sought to be given in respect of tax, duty, cess or fee by explicitly stating that if such tax duty cess or fee is paid before the date of filing of the return under Act 1961, Assessee would then be entitled to deduction. This relaxation/incentive was restricted only to tax, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not deposited by the due date prescribed under the relevant acts and is deposited late, the employer not only pays interest on delayed payments but can incur penalties also, for which specific provisions are made in the provident fund act. Therefore, the act permits the employer to make the deposit with some delay, subject to aforesaid consequences. Insofar as the Income Tax Act is concerned, the assessee can set the benefit if the actual payment is made before due date of ft line the return under section 139(1) . PR. C1T vs. PRO INTERACTIVE SERVICE (INDIA) PVT. LTD., 983/2018, DATED 10.09.2018 (DEL) In view of the judgement of the Division Bench of Delhi High Court in Commissioner of Income-Tax versus AIMIL Ltd., [2010] 321 ITR 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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