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TMI Blog2022 (5) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... between books of account and form 26AS - HELD THAT:- We observe that the assessee s total turnover during the year was Rs. 39,43,47,812/-. The assessee is engaged in the business of manufacturing and dealing in material handling equipments, electric starters and spares, service etc. We observe from the reconciliation statement filed before us that the amount of difference as added by the AO is very negligible. Keeping in view the total turnover of the assessee and the fact that the assessee has duly explained as to how the discrepancy has occurred between books of account and form 26AS, we are fully convinced with the reply of the assessee on this issue and find that the addition needs to be deleted. Accordingly we set aside the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t : Smt. Ranu Biswas, Addl. CIT DR ORDER Per Shri Rajesh Kumar , AM : This is an appeal preferred by the assessee against the order of the Commissioner of Income Tax(Appeals)-NFAC-Delhi [hereinafter referred to as CIT(A) ] dated 20.12.2021 for the assessment year 2013-14. 2. The issue raised in ground no. 1 is general in nature and do not require any adjudication . 3. The issue raised in ground nos. 2 to 4 involved in this appeal of assessee is against the action of the Ld. CIT(A) confirming the disallowance made qua PF ESI in respect employee s contribution u/s. 36(1)(va) r.w.s. 2(24)(x) of the Income-tax Act, 1961 (hereinafter referred to as the Act ) of Rs.51,73,980/-. 4. At the outset, the Ld. AR of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te that the Finance Bill, 2021 has brought in an amendment which disallows the employees contribution made in PF and ESI if not made within the due date as prescribed by the respective statutes (PF and ESI Act). So after the amendment has been inserted according to ShriMiraj 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon ble Supreme Court in the case of M/s Snowtex Investment Ltd. (supra) wherein the Hon ble Supreme court took note of the law laid down on this issue by the Constitution Bench 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atika Township Pvt. Ltd. (supra) and M/s Snowtex Investment Ltd. (supra) and also taking note of the binding decision of the Hon ble Jurisdictional Calcutta High Court on this issue before us in ShriVijayshree 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 favour of assessee. 5. Therefore, in the light of the above judicial precedent (supra), we are inclined to allow t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before us that the amount of difference as added by the AO is very negligible. Keeping in view the total turnover of the assessee and the fact that the assessee has duly explained as to how the discrepancy has occurred between books of account and form 26AS, we are fully convinced with the reply of the assessee on this issue and find that the addition needs to be deleted. Accordingly we set aside the order of Ld. CIT(A) on this issue and direct the AO to delete the disallowance. 9. The issue raised in ground no. 7 is against the order of Ld. CIT(A) confirming the addition of Rs. 12,420/- as interest on TDS which has been disallowed by the AO on the ground that the same is not allowable u/s 37 of the Act as the interest on Govt. liability ..... X X X X Extracts X X X X X X X X Extracts X X X X
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