AI Drafter 
TaxTMI 
TaxTMI 
2022 (2) TMI 761
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.... a Private Limited company, engaged in the business to carry on all or any of the business of development, marketing, advertising, and promotional activities for solar power modules, related components, including solar photovoltaic (PV) modules, solar power storage batteries, invertors, micro inverters and high quality solar modules and other related components. For the year under appeal, the appellant had filed return of income on 29/11/2019 declaring a total Income Rs. 8,20,52,1901. 3. The return of the assessee came to be processed by the AO/CPC has passed order u/s. 143(1) vide DIN No. CPC/1920/A6/2003047023 dated 29/07/2020, wherein the Assistant Director of Income Tax, CPC made the following additions to the income of the appellant....
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....lar submissions was made with regard to disallowance of Rs. 1,30,500/- which had already been disallowed by the AO in the computation of total income. 6. As regards the disallowance made u/s. 36(1)(a) of the Act of Rs. 18,90,162/-, it is submitted that the AO has made the same on account of the delay in deposit of the Employees contributions of Provident Fund beyond the due date specified under the Provident Fund Act. It was submitted that the AO has disallowed a sum Rs. 18,90,1627- being the Provident Fund contributions remitted after the due date, by coming to the conclusion that the same need to be disallowed in terms of Section 36(1)(va) of the Act. The details of the contributions collected from the Employees and the actual date of ....
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....nd section 36(1)(va) and 438(b) which read thus : 'Section 2(24) Income' includes (x) any sum received by the assessee from his employees as contribution to any PF or Superannuation fund or any fund set up under the provisions of the Employees State Insurance Act, 1948 (34 of 1948), or any other fund for the welfare of such employees. 36(1) The deductions provided for in the following clauses shall be allowed in respect of matters dealt therein, in computing the income referred to in section 28- (va) any sum received by the assessee from any of his employees to which the provisions of sub-clause (x) of clause (24) of section 2 apply, if such sum is credited by the assessee to the employee's ac....
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....said section which was inserted by the Finance Act, 1987, which came into effect from April 1, 1988, the letters numbered as clause (a), or clause (C) or clause (d) or clause (e) or clause (f) are omitted from the above proviso and therefore deduction towards the employees contribution paid can be claimed by the assessee. The Explanation to clause (va) of section 36(1) of the income-tax Act further makes it very clear that the amount actually paid by the assessee on or before the due date applicable in this case at the time of submitting returns of income under section 139 of the Act to the Revenue in respect of the previous year can be claimed by the assessees for deduction out of their gross income. The above said statutory provisions of ....
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....f 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) upheld the addition made by the AO. 11. Aggrieved by the order of the CIT(A), assessee is in appeal before us. We have heard the rival submissions. As far as the ground No.3 raised by the assessee is concerned, the same reads as follows: 3. The authorities below are not justified in making/sustaining an addition of Rs. 1,20,58,223/- u/s.43B of the Act under the facts and in the circumstances of the appellant's case in as much as the same h....
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....re liable to be deleted. 14. Ground No.5 reads as follows: 5. The authorities below are not justified in making an addition of Rs. 18,90,162/- u/s.36(1)(va) of the Act being the belated remittance of EPF Contributions under the facts and in the circumstances of the appellant's case. 14. As far as this aforesaid ground of appeal is concerned, the issue is whether the belated payment of EPF contribution under the EPF Act where the payments have however been made on or due date for filing the return of income under section 139(1) of the Act. 15. We find that identical issue has been considered in the following decisions: M/s Mahadev Cold Storage vs Jurisdictional AO - ITA.No.41 & 42/Agra/2021 M/s Essae Terao....