|
The Tax Publishers2021 TaxPub(DT) 4552 (Kol-Trib) INCOME TAX ACT, 1961
Section 36(1)(va) Section 43B
Amendment by Finance Act, 2021 in section 36(1)(va) as well as in section 43B was prospective in nature and applicable with effect from 1-4-2021. Therefore, employee's contribution to Provident Fund (PF) and ESI though paid belatedly but within due date was allowable as business deduction under section 36(1)(va).
|
Business deduction under section 36(1)(va) - Employee's contribution to Provident Fund (PF) and ESI - Payment beyond due date under relevant Act but within due date under section 139(1) - Revenue took plea of amendment in section 36(1)(va) as well as in section 43B vide Finance Act, 2021
Assessee claimed deduction on account of employee's contribution to Provident Fund (PF) and ESI. AO disallowed deduction on account of deposit beyond due date under relevant Acts. Assessee contended that both the contributions as per the PF and ESI Act were made within due date of filing of return of income under section 139(1). Revenue took plea of amendment in section 36(1)(va) as well as in section 43B vide Finance Act, 2021. Held: Amendment by Finance Act, 2021 in section 36(1)(va) as well as in section 43B was prospective in nature and applicable with effect from 1-4-2021. Therefore, employee's contribution to Provident Fund (PF) and ESI though paid belatedly but within due date was allowable.
Followed:CIT v. Vijayshree Ltd., [ITA No. 245 of 2011 dated 16-9-2011] : 2014 TaxPub(DT) 4825 (Cal-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 14A
SUBSCRIBE FOR FULL CONTENT |