TMI Blog2022 (2) TMI 1231X X X X Extracts X X X X X X X X Extracts X X X X ..... yee s State Insurance Scheme (ESI) as deemed income of the employer under Section 2(24)(x) . Scope of amendment - The claim of deduction of contribution to Employee s State Insurance Scheme (ESI) and Provident Fund u/s.36(1)(va) could not he denied to the assessee in Assessment Year 2017-18 in quest ion on the basis of amendments made by Finance Act, 2021. For this proposition. we find support from the decision of the Co-ordinate Bench of Tribunal in the case of The Continental Restaurant and Cafe Company vs. ITO [ 2021 (10) TMI 843 - ITAT BANGALORE] AND M/S. ADYAR ANANDA BHAVAN SWEETS INDIA P LTD. [ 2021 (12) TMI 558 - ITAT CHENNAI] - Decided in favour of assessee. - I.T.A. No.1914/DEL/2021 - - - Dated:- 14-2-2022 - SHRI AMIT SH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia) Pvt. Ltd. vide order dated 10.09.2018 in ITA No.983/2018. 4. Ld. DR for the Revenue relied upon the assessment order and the first appellate order. 5. On perusal of the records, we observe (hat the Assessing Officer has made the impugned addition on the ground that the assessee has deposited employee s contribution towards Provident Fund and ESI amounting to Rs2,32,41,551/- after due date as prescribed under the relevant Act/ Rules in breach of Explanation 5 to Section 43B of the Act. The Assessing Officer accordingly resorted to the addition under Section 36(1 )(va) read with Section 2(24)(x) of the Act. 6. It is the case of the assessee before lower authorities that it has deposited the employee s contribution in EPF and ESI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cable prospectively in relation to Assessment Year 2021-22 and subsequent years. Therefore the claim of deduction of contribution to Employee s State Insurance Scheme (ESI) and Provident Fund u/s.36(1)(va) could not he denied to the assessee in Assessment Year 2017-18 in quest ion on the basis of amendments made by Finance Act, 2021. For this proposition. we find support from the decision of the Co-ordinate Bench of Tribunal in the case of The Continental Restaurant and Cafe Company vs. ITO as reported in (2021) 91 ITR (Trib.)(S.N.) 60 (Bang.) and Adyar Ananda Bhavan Sweets India P. Ltd. vs. ACIT ITA No.402 and 403/Chny/2021 order dated 08.12.2021. Consequently, the action of revenue on this score is set aside and cancelled. 10. In the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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