2022 (3) TMI 1237

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....e involved in the instant appeal relates to the deposit of employees' contributions qua ESI & PF after the due date as prescribed in the relevant Acts, however, before the due date of filing of return of income u/s.139(1) of the Act, resulting into disallowance of Rs. 74,76,708/-by the Assessing Officer. 3. Against the above disallowance, the Assessee preferred first appeal before the Ld. Commissioner, who vide impugned order, dismissed the appeal of the assessee by affirming the order of the AO. 4. Being aggrieved, the Assessee is in appeal before us. 5. Having heard the parties and perused the material available on record. The Assessee raised the arguments against the impugned order, whereas the Ld. DR vehemently supported the sa....

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....P&H HC) has clearly held that the Assessee is entitled to claim deduction of employee's share of ESI & PF u/s.43B of the Act, if the same has been deposited prior to the filing of return of income u/s.139(1) of the Act. 5.5. The jurisdictional High Court as well, in the case of CIT Vs. AIMIL Ltd {(2010) 321 ITR 508 (Del)} affirmed the action of the ITAT in deleting the addition relating to employees' contribution deposited before the due date of filing of return, in respect of Provident Fund and ESI made by the Assessing Officer under Section 36(1)(va) of the Income Tax Act, 1961. 5.6. Again the Jurisdictional High Court in the case of PCIT vs., Pro Interactive Service (India) Pvt. Ltd., vide ITA.No.983/2018 order dated 10.09.2018 whi....

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....e date" under this clause." Section 43B- "Explanation 5.-For the removal of doubts, it is hereby clarified that the provisions of this section shall not apply and shall be deemed never to have been applied to a sum received by the Assessee from any of his employees to which the provisions of sub-clause (x) of clause (24) of section 2 applies." 5.9 We observe that various benches of the ITAT including Hyderabad Bench in the case of Value Momentum Software Services Pvt. Ltd. (ITA No.2197/Hyd/2017 decided on 19.05.2021), have taken into consideration the identical issue qua applicability of the amendment to Sections 36(1)(va) and Section 43B of the Act, by inserting Explanations by the Finance Act, 2021 and clearly held that the am....