| The Tax Publishers2022 TaxPub(DT) 0076 (Bang-Trib) INCOME TAX ACT, 1961
Secton 36(1)(va) Section 43B
Amendment by Finance Act, 2021 to section 36(1)(va) and 43B was not clarificatory and, therefore, such amendment could not be held to be retrospective in nature and, therefore, amended provisions of section 43B as well as section 36(1)(va) were not applicable for the concerned assessment year 2019-20. As employees' contribution to PF/ESI, was paid prior to due date of filing of the return of income under section 139(1), same was, therefore, an allowable deduction.
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Business deduction under section 36(1)(va) - Employees' contribution towards PF/ESIC - Payment beyond due date under relevant Act but within due date under section 139(1) - Applicability of amended provisions of section 43B
Assessee claimed deduction on account of employees' contribution towards PF and ESI. AO disallowed deduction on account of payment beyond due date under the respective Acts. Assessee pleaded to have made payments within due date under section 139(1). CIT(A) by placing reliance on the amendment to section 43B and section 36(1)(va) by Finance Act, 2021 rejected assessee's plea.Held: Amendment by Finance Act, 2021, to section 36(1)(va) and 43B was not clarificatory and, therefore, such amendment could not be held to be retrospective in nature and, therefore, amended provisions of section 43B as well as section 36(1)(va) were not applicable for the assessment year under consideration. As employees' contribution to PF/ESI, was paid prior to due date of filing of the return of income under section 139(1) same was, therefore, an allowable deduction.
Relied:CIT v. Essar Teleholdings Ltd. (2018) 401 ITR 445 (SC) : 2018 TaxPub(DT) 652 (SC). Followed:Essae Teraoka Pvt. Ltd. v. Dy. CIT (2014) 366 ITR 408 (Karn-HC) : 2014 TaxPub(DT) 1218 (Karn-HC). Distinguished:CIT-I, Ahmedabad v. Gold Coin Health Food Pvt. Ltd. (2008) 304 ITR 308 (SC) : 2008 TaxPub(DT) 2223 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2019-2020
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