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| The Tax Publishers2021 TaxPub(DT) 5099 (Jp-Trib) : (2022) 192 ITD 0298 : (2021) 091 ITR (Trib) 0127 INCOME TAX ACT, 1961
Sections 36(1)(va) & 43B
Explanation added to section 36(1)(va) by the Finance Act, 2021 would take effect from 1-4-2021 and would apply prospectively from the assessment year 2021-22 and subsequent assessment years. Accordingly, same could not be invoked for the concerned assessment year 2019-20 and, accordingly, employees' contribution towards ESI and PF though paid beyond due dates mentioend in the respective Acts, however deposited well before due date of filing of return of income under section 139(1) was deductible.
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Business deduction under section 36(1)(va) - Employee's contributions towards ESI and PF - Payment beyond due date under relevant Acts, however, wihtin due date under section 139(1) -
Assessee claimed deduction on account of employee's contribution towards ESI and PF. AO disallowed deduction on account of payment made beyond due date under relevant Act. Assessee pleaded to have made payment before due date under section 139(1). AO took plea of the amendment brought in by the Finance Act, 2021 wherein Explanation to section 36(1)(va) was introduced.Held: Explanation added to section 36(1)(va) by the Finance Act, 2021 would take effect from 1-4-2021 and would apply prospectively from the assessment year 2021-22 and subsequent assessment years. Accordingly, same could not be invoked for the concerned assessment year 2019-20 and, accordingly, employee's contribution towards ESI and PF though paid beyond due dates mentioend in the respective Acts, however, deposited well before due date of filing of return of income under section 139(1) was deductible.
Relied:CIT v. Rajasthan State Beverages Corporation Ltd. (2017) 392 ITR 2, CIT v. State Bank of Bikaner & Jaipur (2014) 43 Taxmann.com 411 (Raj-HC) : 2014 TaxPub(DT) 1436 (Raj-HC) and Sohan Lal Tambi v. ITO ITA No. 40/JP/2021 dated 16-8-2021) : 2021 TaxPub(DT) 4426 (Jp-Trib) and K.P. Airtech v. Dy. CIT ITA No. 41 &42/JP/2021 dated 16-8-2021) : 2021 TaxPub(DT) 4463 (Jp-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2019- 20
IN THE ITAT, JAIPUR BENCH
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