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| The Tax Publishers2022 TaxPub(DT) 2076 (Jp-Trib) INCOME TAX ACT 1961
Section 36(1)(va)
Where the PF and ESI dues were paid after the due date under the respective statues but before filing of the return of income under section 139(1), the same could not be disallowed under section 43B read with section 36(1)(via) by holding that amendment in section 36(1)(va) as well as section 43B by way of inserting the Explanation vide Finance Bill, 2021 were applicable only from assessment year 2021-22 and subsequent assessment years and therefore, the said amendment was not applicable to the assessment year under consideration.
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Business deduction under section 36(1)(va) - Employees' contributions to PF and ESI - Payment made before due date of filing of return - Applicability of amendment
AO made disallowance under section 36(1)(va) on account of delayed payment of employees' contribution towards PF and ESI in spite of paid before due date of filing of return of income under section 139(1). Held: Following the case of M/s. Kogta Financial (India) Ltd. v. CPC, Bengaluru. [ITA No. 182/JP/2021 : 2022 TaxPub(DT) 0334 (Jp-Trib)], it was held that where the PF and ESI dues were paid after the due date under the respective statues but before filing of the return of income under section 139(1), the same could not be disallowed under section 43B read with section 36(1)(via) by holding that amendment in section 36(1)(va) as well as section 43B by way of inserting the Explanation vide Finance Bill, 2021 were applicable only from assessment year 2021-22 and subsequent assessment years and therefore, the said amendment was not applicable to the assessment year under consideration. Thus, disallowance made on account of employees' contributions towards PF and ESI deposited before due date of filing of return of income under section 139(1) was deleted.
Followed:M/s. Kogta Financial (India) Ltd. v. CPC, Bengaluru. [ITA No. 182/JP/2021 : 2022 TaxPub(DT) 0334 (Jp-Trib)]
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2018-19
IN THE ITAT, JAIPUR BENCH
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