2022 (3) TMI 132

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....). The assessee in this appeal has taken the following grounds of appeal: "1. That on the facts and in the circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [hereinafter referred to as the Ld. CIT(A)] erred in confirming the disallowance of Rs. 1,18,39,484/- being the deposit of Employees share towards Provident Fund Contribution after 'the due date' within the meaning of Explanation 1 of section 36(1)(va) of the Income Tax Act, 1961 (the Act), notwithstanding that the amounts had been deposited well within the due date of furnishing the return of income, i.e. 31.10.2018, and despite the plethora of court decisions which held the 'Employees contributi....

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....ow any decision contrary to the case law cited by the ld. Counsel for the assessee. 3. We find that the issue is covered in favour of the assessee as the assessment year involved is AY 2017-18 and the Explanation-5 inserted by Finance Act, 2021 to section 43B w.e.f. 01.04.2021 is not applicable to the assessment year under consideration. The relevant portion of the Coordinate Bench decision of the Tribunal in the case of Harendra Nath Biswas vs. DCIT (supra) for the sake of reference is reproduced as under: " 2. The sole grounds of appeal raised by the assessee is against the Ld. CIT(A) in confirming the action of AO who disallowed/added back a sum of Rs. 1,10,62,263/- on account of delayed deposit of employees contribution to P....

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.... 4. We have heard both the parties and perused the record. First of all we do not countenance this action of the Ld. CIT(A) for the simple reason that the Explanation 5 was inserted by the Finance Act, 2021, with effect from 01.04.2021 and relevant assessment year before us is AY 2019-20. Therefore the law laid down by the Jurisdictional Hon'ble High Court will apply and since this Explanation-5 has not been made retrospectively. So we are inclined to follow the same and we reproduce the order of Hon'ble Calcutta High Court in the case of Vijayshree Ltd. supra wherein the Hon'ble Calcutta High Court has taken note of the Hon'ble Supreme Court decision in CIT vs. Alom Extrusion Ltd. reported in 390 ITR 306. The Hon'ble Calcutta High ....