2022 (1) TMI 242

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....acts are identical and issues are common, for the sake of convenience, these appeals were heard together and are being disposed off, by this consolidated order. 2. The assessee has more or less filed common grounds of appeal for both assessment years, therefore, for the sake of brevity, grounds of appeal filed for the assessment year 2014- 15 are reproduced as under:- "1. For that the order of the Commissioner of Income Tax (Appeals) is contrary to law, facts and circumstances of the case to the extent prejudicial to the interests of the appellant and is opposed to the principles of equity, natural justice and fair play. 2. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the order of without ....

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....making the investments. 12. For that the disallowance u/s.14A read with Rule 8D was not warranted as no expenditure was incurred by the appellant for earning exempt income. 13. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the Assessing Officer erred in invoking Rule 8D(2)(ii) in computing the disallowance u/s.14A. 14. For that without prejudice to the above, all investments did not yield any return in the form of dividend during the impugned assessment year and hence applying Rule 8D(2)(ii) and Rule 8D(2)(iii) on entire investments is not warranted in the facts and circumstances of the case." 3. We find that appeal filed by assessee for assessment year 2014-15 is barred by limitat....

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....essee carried the matter in appeal before first appellate authority, but could not succeed. The learned CIT(A) for reasons stated in his appellate order dated 28.11.2018 sustained additions made by the Assessing Officer towards disallowance of employees contribution to PF & ESI u/s.36(1(va) r.w.s. 2(24)(x) of the Act. The learned CIT(A) had also sustained additions towards expenditure relatable to exempt income u/s.14A read with Rule 8D of the Income Tax Rules, 1962. Aggrieved by order of the learned CIT(A), the assessee is in appeal before us. 6. None appeared for the assessee. We have heard learned DR and perused materials available on record. The first issue that came up for our consideration from ground no. 3 to 5 of assessee appeal ....

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....d section cannot be considered as retrospective in nature and thus, belated payment of employees contribution to PF & ESI after due date specified under respective Act, but before due date for filing of return of income u/s.139(1) of the Act is allowable deduction. The relevant findings of the Tribunal in ITA No.402 & 403/Chny/2021 dated 08.12.2021 are as under:- "6.8 In the present case also, before insertion of Explanation 2 to Section 36(1)(va) of the Act, there is ambiguity regarding due date of payment of employees' contribution on account of provident fund and ESI, whether the due date is as per the respective acts or up to the due date of filing of return of income of the assessee. As noted by Hon'ble Supreme Court an amendm....