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TMI Blog2021 (12) TMI 1337X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition made to the income of the assessee in the intimation made u/s 143(1) of the Act, by disallowing delayed payments of employees contribution to ESI and PF amounting to Rs. 4,74,660/- by invoking the provisions of section 36(l)(va) of the Act. 3. The Ld. Commissioner of I. Tax (A) upheld the addition on the basis of the amendment effected by the Finance Act, 2021, to section 43B of the Act by insertion of Explanation-5 and to section 36(l)(va) of the Act by insertion of Explanation-2, both to the effect that due date for payment of employees' contribution to ESI and PF, for the purpose of claiming deduction of the said amount as per the provisions of section 36(l)(va) of the Act was not governed by section 43B stipulating t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the jurisdictional High Court holding contributions deposited by the due date of filing of return of income u/s 139(1) of the Act as allowable. The Revenue has disallowed the same in the impugned year by applying the amendment made by Finance Act 2021 to section 36(l)(va) and 43B of the Act allowing the claim of such deduction only when paid by due dates specified in their respective Acts, holding the amendment to be applicable on all pending cases post the amendment. 6. We have gone through the orders of the coordinate Benches of the ITAT cited by the Ld. Counsel for the assessee before us and have noted that it has been consistently held that the amendment to section 36(l)(va) and u/s 43B of the Act effected by the Finance Act 202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before us that the amendment to section 36(1)(va) of the Act is retrospective is dismissed. Also since no facts distinguishing the present cases from those decided by the ITAT have been pointed out by the Ld. DR before us and admittedly the amounts of employees' contribution to ESI and PF stood paid before the due date of filing of return of income, the issue of disallowance on account of delayed payments of employees' contribution to ESI and PF is squarely covered by the aforesaid decisions, following which the disallowance made of ESI/PF employees' contribution u/s 36(1)(va) amounting to Rs. 4,74,660/- is deleted.
6. In the result, the appeal of the assessee is allowed.
Order pronounced in open court on 02.12.2021. X X X X Extracts X X X X X X X X Extracts X X X X
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