9911796707
TMI Blog2021 (9) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 and by way of Finance Act of 2021, Explanation (v) to section 43B of the Act was introduced and it is clarified therein that the Employees Contribution to the P.F and ESI deposited by the employer after the due date is not allowable. This issue was considered by this Tribunal in the case of Late Smt. Anjali Devi Majeti (Rep. by L/R Majeti Nagaraju) Hyderabad vs. Income Tax Officer in ITA No. 95/Hyd/2020 dated 19.5.2021 and it has been held that the amendment is applicable prospectively. The relevant portion of the order is reproduced as under: "4. Having regard to the rival contentions and the material on record, I find that the Coordinate Bench of this Tribunal in the case of Elico Ltd. vs. ACIT in I.T.A. No. 1120/HYD/2016, dated 18.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee preferred appeal before the Tribunal, against the order of Ld. CIT(A). 3.3. During the appeal hearing, Ld. AR argued that the assessee has remitted the contributions to the respective accounts before the due date of filing the return, therefore requested to set aside the order of the lower authorities and delete the addition made by the AO. 3.4. On the other hand, the Ld. DR submitted that the EPF is in respect of employees contribution, both the PF and ESI are required to be allowed as deductions, if the same are remitted to the respective accounts before the due dates, specified in the respective act. Since the assessee failed to remit the same before the due date of the respective accounts, as per the provisions of Section 36(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of section 43B. We find merit in the aforesaid submissions of the assessee. There are a number of judicial precedents on this issue wherein it is held that if the employees contribution to PF and ESI is paid within the due date of filing of return of income under section 139(1), then, the amount is allowable as a deduction in view of the provision of section 43B. In view of the afore said, we delete the addition of Rs. 2,07,209". 3.5.1. Similarly, Hon'ble Punjab & Haryana High Court in the case of Pr. CIT Vs. Rajasthan Beverages Corporation Ltd., (2017) [84 taxmann.com 173] held that no disallowance can be made in respect of PF and ESI u/s. 36(1)(va) of the Act, if the same are deposited on or before the due date of filing the retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o-ordinate Bench of the ITAT in the case of KLR Industries Ltd., Vs. DCIT (supra), we hold that no disallowance could be made in respect of employees contribution of PF and ESI if the same are deposited before the due date of filing the return of income. Accordingly, we set aside the order of Ld. CIT(A) and delete the addition made by the AO. The appeal of the assessee on this ground is allowed". 5. Respectfully following the same, I set aside the order of the CIT(A) and delete the addition made by the Assessing Officer on this issue". 2. Respectfully following the same, I hold that since the assessee has deposited the Employees Contribution to the PF and ESI before the date of filing the return of income, as per the amended provision ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
