2022 (4) TMI 609

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....e Tax (Appeals), National Faceless Appeal Centre (NFAC) Delhi dated 24.11.2021 (ITA Nos. 40 & 41/KOL/2022) for A.Ys. 2017-18 & 2018-19 and dated 21.12.2021 (ITA No. 21/KOL/2022) for A.Y. 2018-19 passed under section 250 of the Income Tax Act, 1961. The only issued involved in these appeals is whether the assessees are entitled for deduct ion of employees' contribution paid before the due date of filling of the return. 2. With the assistance of ld. representatives, we have gone through the record carefully. It revealed from the record that the appellants failed to make the payments of employees' contribution to ESI & PF account within the due date provided under the PF & ESI Act. Therefore, the ld. Assessing Officer has disallowed the claim....

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....: - "17. Have heard both the parties. We note that the Finance Bill, 2021 has brought in an amendment which disallows the employees' contribution made in PF and ESI if not made within the due date as prescribed by the respective statutes (PF and ESI Act). So after the amendment has been inserted according to Shri Miraj D Shah takes effect from 1st April, 2021 i.e AY 2021-22 and subsequent assessment year and if the remittance of PF/ESI Employees' Contribution is not made within the time prescribed by the PF/ESI Act then the remittance cannot be allowed as a deduction which is prospective in operation. Whereas according to Ld. CIT(A), the amendment brought in is clarificatory in nature so, retrospective in operation. So we have to adjudica....

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....t one has to apply the test as laid by the Hon'ble Supreme Court in the case of M/s Snowtex Investment Ltd. (supra) wherein the Hon'ble Supreme court took note of the law laid down on this issue by the Constitution Bench in M/s Vatika Township Ltd. and held that the intent of the Parliament/legislature need to be looked into for ascertaining whether the amendment should be retrospective or not. In Vatika Township Ltd. (supra) the Hon'ble Supreme Court held that the notes on clauses appended to the Finance Bill will throw light as to the legislative intent; because it has to be borne in mind that Parliament/legislature is aware of three concepts before an amendment is brought in, which can be discerned from reading of the "Notes on Clauses" ....