2021 (10) TMI 952

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....ed return of income for Assessment Year 2019-20 on 01.11.2019 declaring total income of Rs. 3,19,47,138/-. The return filed by the assessee was processed under section 143(1) of the Income Tax Act 1961 (hereinafter called the 'Act'), by the Central Processing Centre (CPC). By an intimation dated 01.05.2020, the total income of the assessee was assessed at Rs. 3,37,39,551/-. The difference in the income declared in the return of income and as computed in the intimation under section 143(1) of the Act was due to addition of Rs. 17,92,413/-. The aforesaid sum was ESI and PF contribution of employees' share which the assessee deposited with the authorities under the PF and ESI within the due date for filing return of income under se....

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....l-18 16-Jul-18 ESI 754 15-Jul-18 25-May-19 ESI 28,222 15-Aug-18 20-Aug-18 ESI 753 15-Aug-18 24-May-19 ESI 28,865 15-Sep-18 22-Sep-18 ESI 10,783 15-Sep-18 24-May-19 ESI 23,095 15-Sep-18 25-May-19 ESI 31,751 15-Oct-18 18-Oct-18 ESI 35,626 15-Nov-18 15-Dec-18 ESI 19,397 15-Nov-18 25-May-19 ESI 40,496 15-Dec-18 17-Dec-18 ESI 40,755 15-Jan-19 16-Jan-19 ESI 44,600 15-Mar-19 16-Mar-19 Total 17,92,413       3. Aggrieved by the aforesaid addition made to the total income of the assessee, the assessee preferred appeal before the CIT(A). With regard to employee's sha....

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....d or gratuity fund or any other fund for the welfare of employees shall be allowed (irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of accounting regularly employed by him) only in computing the income referred to in section 28 of that previous year, in which such sum is actually paid by him. Proviso to the said section provides that nothing contained in this section shall apply in relation to any sum which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub-section (1) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the e....

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....High Court in CIT v. Gujarat State Road Transport Corpn. [2014] 41 taxmann.com 100/366 ITR 170/223 Taxman 398 (Guj.) wherein the aforesaid distinction has been accepted 5. The CIT(A), thereafter held that the amendment to section 36(1)(va) by insertion of explanation 2 and the amendment to section 43B by insertion to explanation 5 by the Finance Bill 2021 was only declaratory/clarificatory in nature and there therefore was applicable with retrospective effect by necessary intendment of deeming nature expressly stated therein. The CIT(A) finally dismissed the appeal of the Assessee. 6. Aggrieved by the order of the CIT(A), the Assessee is in appeal before the Tribunal. We have heard the rival submissions. We find that the issue raised ....