2019 (11) TMI 459

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....is that the ld. CIT(A) has erred in confirming the disallowance made in respect of remittance of employees contribution towards EPF/ESI. 2. Brief facts leading the case of the assessee are that on verification of the details submitted by the assessee, the Assessing Officer noticed that there is a delay in the payment of Provident Fund and ESI for the assessment year under consideration. Accordingly, the Assessing Officer disallowed the total amount under section 36(1)(va) r.w.s. 2(24)(x) of the Income Tax Act, 1961 ["Act" in short] and brought to tax. 3. On appeal, after considering the submissions of the assessee and by following the decision of the Hon'ble Jurisdictional High Court in the case of M/s. Unifac Management Services (India....

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.... submitted that the issue is covered in favour of the assessee by the Hon'ble Jurisdictional High Court in the case of CIT v. Industrial Security & Intelligence India Pvt. Ltd. (supra). We have perused the above decision, wherein, the Hon'ble High Court has observed and held as under: "2. The brief facts of the case are as follows: The respondent/assessee filed its return of income for the assessment years in question. The said returns were processed and were not selected for scrutiny. Subsequently, the Assessing Officer noticed that there was escapement of income and hence reopened the assessments under Section 147 of the Income Tax Act by issuing notice under Section 148 of the Income Tax Act. While completing the reassessment, the ....

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....he case of CIT Vs. Alom Extrusions Ltd. (319 ITR 306), wherein the Hon'ble Supreme Court held that omission of second proviso to section 43B and amendment of first proviso by Finance Act, 2003 are curative in nature and are effective retrospectively and thus with effect from 1.4.1988 i.e. the date of insertion of first proviso. The co-ordinate Bench of this Tribunal considering a similar issue in the case of M/s.Venkateswara Electrical Industries P. Ltd. Vs. DCIT (supra) following the decision of Hon'ble Delhi High Court in the case of CIT Vs. Amil Ltd. (321 ITR 508) held that even the employees contribution to provident fund is to be allowed as deduction if it is paid within due date for filing of return. While holding so, the Trib....

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....bove, decision, we direct the Assessing Officer to delete disallowances made under section 43B of the Act for both these assessment years. The grounds of appeal raised by the assessee are allowed." 3. Aggrieved by the said order of the Tribunal, the Revenue is before this Court. 4. Heard learned Standing Counsel appearing for the Revenue and perused the materials placed before this Court. 5. We find that the Tribunal has rightly relied on the decision of the Supreme Court in the case of CIT V. Alom Extrusions Ltd. reported in 319 ITR 306, whereby, the Supreme Court held that omission of second proviso to Section 43B and amendment to first proviso by Finance Act, 2003 are curative in nature and are effective retrospectively, i.e., w....