2021 (9) TMI 174

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....that the A.Y. before the Tribunal is 2019-20 and by way of Finance Act of 2021, Explanation (v) to section 43B of the Act was introduced and it is clarified therein that the Employees Contribution to the P.F and ESI deposited by the employer after the due date is not allowable. This issue was considered by this Tribunal in the case of Late Smt. Anjali Devi Majeti (Rep. by L/R Majeti Nagaraju) Hyderabad vs. Income Tax Officer in ITA No. 95/Hyd/2020 dated 19.5.2021 and it has been held that the amendment is applicable prospectively. The relevant portion of the order is reproduced as under: "4. Having regard to the rival contentions and the material on record, I find that the Coordinate Bench of this Tribunal in the case of Elico Ltd.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....same are not allowable deductions u/s. 43B of the Act. Hence, the assessee preferred appeal before the Tribunal, against the order of Ld. CIT(A). 3.3. During the appeal hearing, Ld. AR argued that the assessee has remitted the contributions to the respective accounts before the due date of filing the return, therefore requested to set aside the order of the lower authorities and delete the addition made by the AO. 3.4. On the other hand, the Ld. DR submitted that the EPF is in respect of employees contribution, both the PF and ESI are required to be allowed as deductions, if the same are remitted to the respective accounts before the due dates, specified in the respective act. Since the assessee failed to remit the same be....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ome as prescribed under section 139(1), the amount is allowable as a deduction as per the provisions of section 43B. We find merit in the aforesaid submissions of the assessee. There are a number of judicial precedents on this issue wherein it is held that if the employees contribution to PF and ESI is paid within the due date of filing of return of income under section 139(1), then, the amount is allowable as a deduction in view of the provision of section 43B. In view of the afore said, we delete the addition of Rs. 2,07,209". 3.5.1. Similarly, Hon'ble Punjab & Haryana High Court in the case of Pr. CIT Vs. Rajasthan Beverages Corporation Ltd., (2017) [84 taxmann.com 173] held that no disallowance can be made in respect of PF ....