| The Tax Publishers2021 TaxPub(DT) 6026 (Bang-Trib) INCOME TAX ACT, 1961
Section 43B Section 36(1)(va)
Since assessment year concerned in assessee's case being 2018-19, amendment to section 36(1)(va) and section 43B made by Finance Act, 2021 did not have application. Therefore, AO was directed to delete disallowance of employees' contribution to PF and ESI, since same had been paid prior to the due date of filing of return under section 139(1).
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Business deduction under section 36(1)(va) - Employees/contribution to PF/ESI - Effect of amendment by Finance Act, 2021 -
AO disallowed a sum of Rs. 6,21,831 being the employees' contribution to PF/ESI for the reason that the amounts were not paid within due date specified under the respective Acts. Assessee pleaded to have made payments within due date under section 139(1). AO rejected assessee's plea in view of Explanation 5 inserted in section 43B by the Finance Act, 2021. Held: Since, assessment year concerned in assessee's case being 2018-19, amendment to section 36(1)(va) and section 43B made by Finance Act, 2021 did not have application. Therefore, AO was directed to delete disallowance of employees'contribution to PF and ESI, since same had been paid prior to the due date of filing of return under section 139(1).
Followed :Shakuntala Agarbathi Company v. Dy. CIT in ITA No. 385/Bang/2021 (Order, dated 21-10-2021), Dhabriya Polywood Limited v. ACIT (2021) 63 CCH 0030 Jaipur Trib : 2021 TaxPub(DT) 5099 (Jp-Trib), NCC Limited v. ACIT reported in (2021) 63 CCH 0060 (Hyd-Trib), Indian Geotechnical Services v. ACIT in ITA No. 622/Del/2018 (Order, dated 27-8-2021) : 2021 TaxPub(DT) 4772 (Del-Trib) and M/s. Jana Urban Services for Transformation Private Limited v. Dy. CIT in ITA No. 307/Bang/2021 (Order, dated 11-10-2021)Applied :M.M. Aqua Technologies Limited v. CIT 2021 TaxPub(DT) 4409 (SC) : (2021) 436 ITR 582 (SC)Distinguished on facts :CIT v. Gold Coin Health Food (P) Ltd. 2008 TaxPub(DT) 2223 (SC) : (2008) 304 ITR 308 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2018-19
IN THE ITAT, BANGALORE BENCH
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