TMI Blog2021 (12) TMI 1337X X X X Extracts X X X X X X X X Extracts X X X X ..... Act 2021 is prospective and the issue otherwise stands decided by the jurisdictional high court in favour of the assessee As decided in AJAY PIPLANI, VERSUS THE ASSISTANT DIRECTOR OF INCOME TAX, BENGALURU [ 2021 (10) TMI 1280 - ITAT] that the claim of employees contribution to ESI and PF as per section 36 (1) (va) of the Act cannot be denied in the impugned year, i. e. 2019 - 20 on the basis of amendment made to the section by Finance Act 2021. The order of the Ld. CIT(A) upholding the said disallowance to the is therefore set aside and the AO is directed to allow the claim of the assessee. Also see M/S JUPITER AQUA LINES PVT. LTD. VERSUS THE D.C.I.T., CIRCLE-6 (1) , MOHALI. [ 2021 (11) TMI 761 - ITAT CHANDIGARH] - Decided in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to be paid by due date specified in their respective Acts for the purpose of claiming deduction thereof. The Ld. CIT(A) held that the said amendment to be clarificatory and hence retrospective in application. Accordingly, the contention of the Ld. Counsel for the assessee that the issue already stood decided in its favour by the Hon'ble Jurisdictional High Court in the case of CIT vs. M/s Lakhani Rubber Udyog (P) Ltd ITA No. 215 of 2010 dt 22.09.2015 CIT vs Nuchem Ltd (2015) 371 ITR 164 (P H), was brushed aside and the addition upheld. 4. This issue has been dealt with and adjudicated by the ITAT in a number of cases, consistently ruling in favour of the assessee, holding that the amendment to section 43B of the Act by insert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally stating the amendment being applicable in relation to assessment year 2021-22 and subsequent years. Therefore the addition, we hold, cannot be made on the strength of the amendment effected by Finance Act 2021 to section 36(l)(va)/43B of the Act. Moreover it is an admitted position that the jurisdictional High Court has in various decisions held that employees contribution to ESI PF is allowable if paid by the due date of filing return of income u/s 139(1) of the Act. The jurisdictional High Court has held so in the following cases: 1) CIT Vs. Nuchem Limited, ITA No.323 of 2009 2) CIT Vs. Hemla Embroidery Mills Pvt. Ltd.(2014), 366 ITR167 7. In view of the above, we hold that the claim of employees contributio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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