2022 (2) TMI 762

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....r Bench These two appeals by the assessee relate to the assessment years 2018-19 and 2019-12 involving a common issue. These are, therefore, clubbed for disposal on merits for the sake of convenience. 2. In the appeal for the assessment year 2018-19, the only issue raised is against the disallowance of Rs. 5,25,409/- made by the AO towards Employees contribution to EPF/ESIC which was deposit....

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..... The Hon'ble Himachal Pradesh High Court in CIT vs. Nipso Polyfabriks Ltd. (2013) 350 ITR 327 (HP) has held that there exists no difference between employees or employer's contribution and both are to be allowed as deduction if deposited before the due date. 4. At this juncture, it is relevant to mention that the Finance Act, 2021 has inserted Explanation 2 below section 36(1)(va) prov....

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..... 2021-22, we hold that the position of law as set out by various Hon'ble High Courts including the one in CIT vs. Nipso Polyfabriks Ltd. (supra) squarely applies to the facts and circumstances of the instant case, thereby not warranting any disallowance since the amount in question was admittedly deposited before due date u/s. 139(1) of the Act. The addition is therefore, directed to be delet....