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2021 (10) TMI 223 - AT - Income TaxLate deposit of provident fund and late deposit of ESI - Scope of amendment - due date for filing original return - HELD THAT - As the return was filed on 26.10.2018 and for the year under consideration the extended due date for filing original return was 31.10.2018. This means that the PF and the ESI were not only deposited within the financial year itself but also before filing of the return As amended provisions of Section 43B as well as 36(1)(va) are not applicable for the assessment year under consideration. By following the binding decision of GUJARAT STATE ROAD TRANSPORT CORPORATION 2014 (1) TMI 502 - GUJARAT HIGH COURT , the employees contribution paid by the assessee before the due date of filing of return of income u/s.139(1) is an allowable deduction. Accordingly, we decide this issue in favour of the assessee.
Issues Involved:
Appeals against two separate orders of the National Faceless Appeal Centre (NFAC) dated 09.04.2021 for A.Y.2018-19 - One appeal under section 143(1) and the other under section 154 of the Act. Comprehensive Analysis: Issue 1: Appeal in ITA No.604/Del/2021 - The appellant challenged disallowances on account of late deposit of provident fund and ESI made by the CPC. - NFAC upheld the disallowances citing a decision of the Hon'ble Gujarat High Court. - Appellant relied on a decision by the Tribunal in a similar case favoring the assessee and other relevant cases. - After considering the arguments, the Tribunal found that the PF and ESI were deposited before the due date of filing the return, following the decision of the Hon'ble Gujarat High Court and other precedents. - The Tribunal referred to the amendment in Section 36(1)(va) and Section 43B brought by the Finance Act, 2021, clarifying the applicability of Section 43B on belated payment of employee's contribution. - The Tribunal concluded that the employees' contribution paid before the due date of filing the return is an allowable deduction, deleting the disallowance made by the Assessing Officer. - The appeal was partly allowed in favor of the assessee, directing the NFAC to delete the disallowance. Issue 2: Appeal in ITA No.605/Del/2021 - Since the appeal in ITA No.604/Del/2021 was decided in favor of the assessee, the appeal in ITA No.605/Del/2021 became unnecessary. - The decision was announced in the open court on 30.09.2021. In conclusion, the Tribunal's detailed analysis and application of relevant legal precedents, along with the consideration of the recent amendment, resulted in the partial allowance of the appeal in ITA No.604/Del/2021, leading to the dismissal of the appeal in ITA No.605/Del/2021 due to its consequential nature.
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