9911796707
Advanced Search 
TMI Blog2022 (4) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-10-2019 for the A.Y under consideration, whereby a sum of Rs. 3,05,757/- was disallowed/added back on account of failure of the assessee-appellant on account of deposit of employees contribution to PF / ESI. 2. At the time of hearing when the case was called for it is noticed that neither any one on behalf of assessee has appeared nor any adjournment application/petition is filed on behalf of assessee. Therefore, we proceed to dispose off the appeal after hearing the Learned Departmental Representative ( in short, the ld.DR) and perusing the material available on record on merits. 3. The assessee has raised the following grounds of appeal:- 1 For that the Ld. CIT(A) erred in confirming the disallowance made u/s. 36(1)(va) made by AO, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ggrieved by the above order of the ld. CIT(A), now the assessee is in appeal before us by raising the aforementioned grounds of appeal.. 7. After hearing the ld. DR and perusing the material available on record, we find that the issue raised in the instant appeal regarding disallowance of employees' contribution towards Provident Fund and ESI without following the provisions of section 2(24)9x) read with section 36(1)(va of the Act is squarely covered in favour of the assessee by the judgment of the Hon'ble Jurisdictional High Court, Kolkata in the case of Vijay Shree Ltd, ITA No. 245 of 2011(G.A No.2607 of 2011) dt. 12.8.2015. We further find that the issue in hand is squarely covered in favour of assessee appellant by the latest order dt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the payment of employees' contribution if made by an assessee before the due date of filing of return of income u/s 139(1) of the Act, is allowable as a deduction. We note that by Finance Act, 2021, the provision of Section 36(1)(va) as well as Section 43B has been amended to this extend by inserting the Explanation 2 whereby it is clarified that the provision of Section 43B shall not apply and shall be deemed never to have been applied for the purpose of determining the date under this clause. For ready reference, we produce the Explanation-2 to Section 36(1)(va) as under: "Section 36(1)(va) Explnation-2-For the removal of doubts, it is hereby clarified that the provisions of Section 43B shall not apply and shall be deemed ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant clauses 8 & 9 of the Finance Bill, 2021 (supra) pertaining to the issue in hand which in clear and unambiguous terms spells out the intention of Parliament that the amendment shall take effect from 1st April, 2021 and therefore will accordingly apply to Assessment Year 2021-22 and subsequent years. So since the legislative intent is clear, the amendment brought in by Finance Act, 2021 on this issue as discussed is prospective and Ld. CIT(A) erred in holding otherwise. So till AY 2021-22, the Jurisdictional High Court's view in favour of assessee will hold good and is binding on us. As discussed the decision of the Hon'ble Delhi High Court in Bharat Hotels Ltd. (supra) which was in favor of revenue has not considered th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
