2021 (8) TMI 1235

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....ng of the return of u/s 139 of the Act but not before the respective due date as prescribed under the law. This is the solitary issue in the appeal. 2. The facts shows that the assessee is a company engaged in developing, designing and manufacturing modular exhibition stands and portable display system for exhibition in India. It filed its return of income on 29.11.2013 declaring income of Rs. 2,41,68,180/-. 3. During the course of assessment proceedings the ld AO noted that the assessee has deposited ESI employees contribution of Rs. 2,31,992/- and provident fund of employees contribution of Rs. 9,84,268/- beyond the due date prescribed under the respective provident fund and ESI laws and therefore, same is disallowable u/s 36(1)(va) of ....

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.... collected the sum of Rs. 12,16,260/- being employee's contribution under the provident fund and with respect to ESI laws. The above contribution was admittedly not deposited by the assessee within the due date prescribed under the respective ESI and PF statue however, same was deposited before the due date of filing of return of income. Therefore, the ld AO as well as the ld CIT(A) disallowed the same holding that such contribution becomes the income of the assessee under the provision of section 2(24)(x) of the Act and thereafter if the same is deposit within the due date prescribed under the respective laws then same is allowable as deduction u/s 36(1)(va) of the Act. Coordinate bench in case of DCIT Vs Dee Development Engineers in ITA N....

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.... ITR 192 by the Hon'ble Supreme Court. Hence, in light of the latest decision in case of Pro Interactive Service (India) Pvt. Ltd., the issue is covered in favour of the assessee. Hence, Ground No. 1 is dismissed." 7. Further with respect to the argument of the learned departmental representative that amendment made with finance act 2021 wherein explanation 1 is added u/s 36 (1) (va) of the act with effect from 1 April 2021, is applicable to the present case, we referred to the "Notes on clauses" at the time of introduction of the finance bill 2021 which says as Under:- "Clause 8 of the Bill seeks to amend section 36 of the Income-tax Act, relating toother deductions. Sub-section (1) of the said section provides for allowing of deductions....