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TMI Blog2021 (12) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... e of ESI PF u/s.43B of the Act, if the same has been deposited prior to the filing of return of income u/s.139(1) of the Act. It is clear that the Hon ble Court has not drawn any distinction between the employee s and employer s share qua PF ESI contributions. Admittedly there are no contrary judgements of the jurisdictional High Court against the assessee on the aspect under consideration hence, first determination of the Ld. CIT(A) qua non-applicability of the provisions of Section 43B of the Act to the employee s share qua PF ESI, is unsustainable. Determination to the effect that the amendment made in Section 36(1)(va) and 43B of the Act by Finance Act 2021 has to be considered as clarificatory in nature and having retrospe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.06.2021 impugned herein passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi, for the assessment years 2018-2019 2019-2020, u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as the Act ). 2. The issue involved in the instant appeals relates to the deposit of employees contributions qua ESI PF after the due date as prescribed in the relevant Acts, however, before the due date of filing of return of income u/s.139(1) of the Act, resulting into disallowance of ₹ 5,88,203/- for A.Y.2018-2019 and ₹ 60,540/- for A.Y.2019-2020 made by the A.O. 3. Against the above order of AO, the assessee preferred first appeals before the CIT(A), however, the CIT(A) sustained the additions made by the AO for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 2 applies. 5.1 We may observe that the ld. CIT(A) in its order at para no. 7.15 itself has observed that the issue has been highly contentious and different High Courts have taken divergent views on the same issue, out of which some are in favour of the assessee and some are against the assessee. The ld. CIT(A) further observed that the judgments and orders relied upon by the assessee have been rendered before the clarificatory amendments made in the Finance Act, 2021 and the Finance Act, 2021 has put an end to this controversy. 5.2 Admittedly there is plethora of judgments in favour of the Assessee s contention and of the Revenue. The controversy with regard to divergent views of different High Courts, has been settled by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erve that various benches of the ITAT including Hyderabad Bench in the case of Value Momentum Software Services Pvt. Ltd. (ITA No.2197/Hyd/2017 decided on 19.05.2021), have taken into consideration the identical issue qua applicability of the amendment to Section 36(1)(va) and Section 43B of the Act, by inserting Explanations by the Finance Act, 2021 and clearly held that the amendment shall be applicable from 1st April, 2021 onwards . It is also relevant to note that the CBDT has also issued Memorandum of Explanation qua applicability of the amended provisions of Section 36(1)(va) 43B of the Act w.e.f. 1st April, 2021, and Assessment Year 2021-21 onwards, hence there is no doubt qua applicability of the amended provisions referred above, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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