2022 (3) TMI 614

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....l)(va) of the IT Act for delayed deposit of employees' share of ESI/PF not appreciating the fact that such payments are made before due date of filling of return of income u/s 139(1) of IT Act and therefore are allowable under law as per decisions of jurisdictional Delhi High Court and Apex Court. (Tax Effect: Rs. 12,09,577/-) 2. The Ld CIT(A) has grossly erred both on facts and in law in upholding impugned addition of Rs. 39,14,490/- u/s 36(l)(va) of the IT Act for delayed deposit of employee shares of ESI/PF in view of the Explanation 2 inserted in section 36(l)(va) by Finance Act 2021 ignoring the fact that above Explanation is not applicable for the year under consideration. (Tax Effect: Rs. 12,09,577/-). 3. The Ld CIT(A) has gros....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ate mentioned in the Acts (i.e. PF & ESI Act) with a few days delay, but well within the date of furnishing income tax return u/s 139(1) of the Act. The assessee has relied on the order of Coordinate Bench dated 31/01/2022 in ITA No. 1245 & 1246/Del/2021 wherein it is held as under:- "7. Before us, the Learned A.R. pointed to the order of the Ld. CIT(A) in para 2.2.2 and submitted that though there has been delay in the deposit of Employees Contribution of PF/ESIC, but, the same has been deposited with the appropriate authorities before the filing of return of income by the assessee. He, therefore, submitted that since the amount have been deposited before the filing of the return of income, no disallowance is called for and for the afore....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... various Benches of the Tribunal at Delhi and other Tribunal have held that the delayed deposits of PF & ESIC before the date of filing of return of income is an allowable expenditure and for which reliance was placed on the decision of Hon'ble Delhi High Court in the case of AIMIL Ltd. (supra). As far as reliance by Learned DR on the amendment brought out by Finance Act 2021 is concerned, "note on clauses" to the Finance Bill 2021 clearly states that the amendment will take effect from 1st April 2021 and will apply in relation to the assessment year 2021-21 and subsequent assessment year. In such a situation, we are of the view that since the assessment year under consideration, is A.Y 2018-19, the amendment does not apply to the assessmen....