TaxTMI 
TaxTMI 
2022 (5) TMI 825
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....umber of appeals this appeal is disposed off by hearing the Ld. DR. 3. On hearing the Ld. DR and perusing the orders of the authorities below, I find that the Central Processing Centre (CPC), Bengaluru while passing the intimation u/s. 143(1) disallowed Employees Contribution towards PF & ESI which was sustained by the Ld. CIT(A) observing that the amendment brought in by Finance Act, 2021 by way of Explanation 2 and Explanation 4 to the provisions of Section 36(1)(va) and 43B of the Act are retrospective in nature. He was also of the opinion that the amendments were only clarificatory in nature and, therefore, applies retrospectively. 4. I find that this issue is squarely covered by the decision of this Tribunal in the case of Devend....
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....sions of section 36(1)(va) and section 43B, the coordinate bench has held that the amended provisions would apply prospectively w.e.f. assessment year 2021-2022. The observations of the learned Bench in this regard is reproduced hereunder for better clarity:- "7. I have considered the rival arguments made by both the sides, perused the orders of the A.O. and the Ld. CIT(A) and the paper book filed on behalf of the assessee. I have also considered the various decisions cited before me. I find the A.O. CPC in the instant case has computed the income of the assessee at Rs. 23,44,250/- as against the returned income of Rs. 20,17,920/- by making an adjustment for a sum of Rs. 3,26,330/- on account of belated payment to employees' co....
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.... actually made. It was further held that it was not the legislative intent and objective to treat belated payment of Employees' Provident Fund & Employees' State Insurance Scheme as deemed income of the employer under section 2(24)(x) of the I.T. Act, 1961. 7.2. I find the Coordinate Bench of the Tribunal in the case of Insta Exhibitions Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range-4, New Delhi vide ITA. No. 6941/Del./2017 order dated 03.08.2021 while allowing such belated deposit of employees' contribution to PF & ESI as per the respective Act, but, paid before the due date of filing of the income tax return, deleted such disallowance by observing as under: "8. We have carefully considered contentions of ....
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....321 ITR 508 (Del.). But the Ld. AR relied upon the decision of the Hon'ble Delhi High Court in case of Pr. CIT vs. Pro Interactive Service (India) Pvt. Ltd. ITA No. 983/2018 pronounced on 10.09.2018 wherein the Hon'ble High Court decided the issue in favour of the assessee relying upon the judgment of AIMIL Ltd. (supra). The Hon'ble Delhi High Court held that the legislative intent was/is to ensure that the amount paid is allowed as expenditure only when payment is actually made. We do not think that the legislative intent and objective is to treat belated payment of Employee's Provident Fund (EPD) and Employee's State Insurance Scheme (ESI) as deemed income of the employer under Section 2(24)(x) of the Act. It is settle....
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....ich the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued there under or under any standing order, award, contract of service or otherwise. It is proposed to insert Explanation 2 to clause (va) of sub-section (1) of the said section so as to clarify that the provisions of section 43B shall not apply and shall be deemed never to have been applied for the purposes of determining the "due date" under the said clause. This amendment will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-2022 and subsequent assessment years." Therefore it is apparent ....