2021 (5) TMI 1007

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....taining to addition towards PF and ESI and another is pertaining to the addition made u/s 14A of the Act. 2.1 In ITA No. 1534/Hyd/2017, the assessee has raised two substantive grounds of appeal, one is pertaining to the addition towards ESI and PF, which is similar to ground No. 2 in ITA No. 1533/Hyd/2017 and another one is pertaining to TDS of Rs. 78,26,28,873/-, which is not pressed by the ld. AR of the assessee at the time of hearing, therefore this ground is dismissed as not pressed. 3. As regards the addition towards PF & ESI, which is similar in both the appeals under consideration, the AO made the addition relating to employees contribution to PF & ESI on the ground that the same was deducted but was not remitted into rele....

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....n. The Revenue's case in tune thereof relies on Section 36(va) read with explanation thereto that it is not Section 43B but the former provision which is applicable in such an instance. We find no merit in the Revenue's foregoing stand. We take note of the explanatory memorandum to the Finance Act, 2021 proposing amendment in both Section 36(va) as well as Section 43B by inserting corresponding Explanations that although the impugned employees provident fund comes under the former provision only, the same is applicable from 01-04-2021 onwards. Meaning thereby that the legislature itself has condoned the impugned default before 01-04-2021. We thus delete the impugned employees provident fund disallowance of Rs. 8,11,648/- for this precise re....

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....tments were made and no exempt income was earned from the investment so made, the provisions of Section 14A will not applicable to the case of assessee. Therefore, following the said decision of Hon'ble Delhi High Court in the case of Cheminvest Ltd., (supra),we direct the AO to delete the addition made on this count. 9. In the result, both the appeals are allowed in above terms. Pronounced in the open court on 27th May, 2021. ============= Document 1 Sub-section (1) of the said section provides for allowing of deductions provided for in the clauses thereof for computing the income referred to in section 28 of the said Act. Clause (va) of the said sub-section provides for allowance of deduction for any sum received by the ....