TMI Blog2022 (3) TMI 1399X X X X Extracts X X X X X X X X Extracts X X X X ..... before the due date of filling of the return - HELD THAT:- A claim has been made that payment was made within the due date of filing of the return. But no details were submitted before the lower authorities and for buttressing this contention, for the first time an audit report is being placed before us exhibiting the payment made before the due date of filing of the return. We confronted the assessee with regard to the above fact, then he informed us that basically the return of the assessee was processed at CPC, Bengaluru, wherein without asking for any explanation from the assessee, the disallowance was made. Before the ld. CIT(Appeals), it could not submit the details. Thus in a faceless disposal of appeal, the disallowance was conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8th March, 2022. The only issued involved in all these appeals is whether the assessees are entitled for deduction of employees contribution paid before the due date of filling of the return. 2. With the assistance of ld. representatives, we have gone through the record carefully. It revealed from the record that these appellants failed to make the payments of employees contribution to ESI PF account within the due date provided under the PF ESI Act. Therefore, the ld. Assessing Officer has disallowed the claim of assessees for grant of deduction of such contributions. This disallowance was made with the aid of section 36(1)(va) read with section 2(24)(x) of the Income Tax Act. Before us, it was contended that the issue in dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive statutes (PF and ESI Act). So after the amendment has been inserted according to Shri Miraj D Shah takes effect from 1st April, 2021 i.e AY 2021-22 and subsequent assessment year and if the remittance of PF/ESI Employees Contribution is not made within the time prescribed by the PF/ESI Act then the remittance cannot be allowed as a deduction which is prospective in operation. Whereas according to Ld. CIT(A), the amendment brought in is clarificatory in nature so, retrospective in operation. So we have to adjudicate this issue whether the amendment brought in by Finance Act, 2021 is prospective or retrospective in operation. We note that before this amendment has been inserted by Finance Bill, 2021, the Hon ble Jurisdictional Calcutta H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch in M/s Vatika Township Ltd. and held that the intent of the Parliament/legislature need to be looked into for ascertaining whether the amendment should be retrospective or not. In Vatika Township Ltd. (supra) the Hon ble Supreme Court held that the notes on clauses appended to the Finance Bill will throw light as to the legislative intent; because it has to be borne in mind that Parliament/legislature is aware of three concepts before an amendment is brought in, which can be discerned from reading of the Notes on Clauses to the Bill which are (i) prospective amendment with effect from a fixed date; (ii) retrospective amendment with effect from a fixed anterior date; and (iii) clarificatory amendments which are retrospective in nature. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue before us in Shri Vijayshree Ltd. Ltd.(supra), M/s Philips Carbon Black Ltd.(supra), M/s Coal India Ltd.(supra), M/s Akzo Nobel India Ltd. (supra), we set aside the impugned order of Ld CIT(A) and direct the AO to allow the claim of deduction in respect of employees contribution shares towards ESI, PF, by the assessee before the due date of filing of return u/s 139(1) of the Act. Therefore the appeal of assessee succeeds and so, it is allowed in favor of assessee . 4. A perusal of the above would reveal that the ITAT, Kolkata has specifically propounded that if employees contribution received by an assessee and paid to ESI and PF accounts before the due date of filing of the return, then the assessee will be eligible to claim the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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