INCOME TAX ACT, 1961

Sections 36(1)(va) and 43B

Business deduction under section 36(1)(va) - Contributions to PF and ESI - Remittance of employees' contributions to PF and ESI before due date of filing of return of income under section 139(1) -

Assessee filed appeal against the order of CIT(A) sustaining additions made to the returned income while processing under section 143(1) on account of late deposit of employees' contribution to PF and ESI under section 36(1)(va) contending that said payments were deposited before due date of filing return. Thus, no disallowance could be made. Held: The Tribunal had taken into consideration its various orders wherein similar issue had been decided in favour of the assessee on the issue in question. Recently, the similar issue of late deposit of employees PF/ESIC contribution by the assessee but paid the same before due date of filing of return of income in the case of Sanjay Porwal (ITA No. 63/JP/2022) vide order dated 6-4-2022 : 2022 TaxPub(DT) 2848 (Jp-Trib) wherein issue was decided in favour of the assessee by holding that amendment in section 36(1)(va) as well as section 43B by way of inserting the Explanation 2 and 5, respectively vide Finance Bill, 2021 are 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 contribution towards PF/ESIC deposited before due date of filing of return of income under section 139(1) was deleted. Thus, the solitary ground of appeal of the assessee was allowed.

Followed:Sanjay Porwal (ITA No. 63/JP/2022) vide order dated 6-4-2022 : 2022 TaxPub(DT) 2848 (Jp-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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