| The Tax Publishers2022 TaxPub(DT) 8579 (Jab-Trib) : (2023) 198 ITD 0528 INCOME TAX ACT, 1961
Sections 36(1)(va) & 43B
Amendments by way of Explanation 5 to section 43B and Explanation 2 to section 36(1)(va) had been proposed as prospective amendments, as stated in Notes on Clauses to, and Memorandum explaining Provisions of Finance Bill, 2021. Thus, the said amendments would take effect only from assessment year 2021-22.
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Business deduction under section 36(1)(va) - Employees' contributions to PF and ESI - Deposited beyond due date specified under section 36(1)(va) but prior to due date of filing of return of income under section 139(1) -
Revenue invoking section 2(24)(x) read with section 36(1)(va), added employees' contributions to PF and ESI to assessee's returned income under section 143(1)(a) as the same stood deposited beyond due date specified under section 36(1)(va), even as, admittedly, prior to the due date of filing of return of income under section 139(1). Assessee submitted that the addition in question, being debatable, could not have been made under section 143(1). Held: Amendments by way of Explanation 5 to section 43B and Explanation 2 to section 36(1)(va) had been proposed as prospective amendments, as stated in Notes on Clauses to, and Memorandum explaining Provisions of Finance Bill, 2021. Thus, the said amendments would take effect only from assessment year 2021-22 and accordingly, it would not be applicable for the assessment year under consideration being 2019-20. Hence, addition made on account of delay in deposit of employees' contributions to PF and ESI was deleted.
REFERRED : Nikhil Mohine v. Dy. CIT [IT Appeal Nos. 37 and 38 (Jab.) of 2021, dated 18-11-2021] : 2022 TaxPub(DT) 0046 (Jab-Trib), Popular Vehicles & Services (P.) Ltd. v. CIT (2018) 406 ITR 150 (Ker.) : 2018 TaxPub(DT) 4368 (Ker-HC), CIT v. Gujarat State Road Transport Corporation (2014) 366 ITR 170 (Guj.) : 2014 TaxPub(DT) 1235 (Guj-HC), CIT v. Merchem Ltd. (2015) 378 ITR 443 (Ker.) : 2015 TaxPub(DT) 3586 (Ker-HC), Unifac Management Services (India) (P.) Ltd. v. Dy. CIT (2018) 409 ITR 225 (Mad.) : 2018 TaxPub(DT) 7567 (Mad-HC), Union of India v. S. Muthyam Reddy (1999) 240 ITR 341 (SC) : 1999 TaxPub(DT) 1438 (SC), CIT v. GEI Engineering Ltd. (2009) 310 ITR 112 (MP) : 2009 TaxPub(DT) 0734 (MP-HC), CIT v. Shikarchand Jain (2003) 263 ITR 221 (MP) : 2003 TaxPub(DT) 1254 (MP-HC), Asstt. CIT v. Rajesh Jhaveri Stock Brokers (P.) Ltd. (2007) 291 ITR 500 (SC) : 2007 TaxPub(DT) 1257 (SC), Asstt. CIT v. Saurashtra Kutch Stock Exchange Ltd. (2008) 305 ITR 227 (SC) : 2008 TaxPub(DT) 2300 (SC), CIT v. Smt. Aruna Luthra (2001) 252 ITR 76 (Punj & Har.) (FB) : 2001 TaxPub(DT) 1607 (P&H-HC)
FAVOUR : In assessee's favour
A.Y. : 2019-20
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