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2022 (6) TMI 401
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.... filing this appeal before the Tribunal. In this regard, the assessee has filed an application seeking condonation of the said delay and keeping in view the reasons given therein, we are satisfied that there is a sufficient cause for the delay of 57 days on the part of the assessee in filing this appeal before the Tribunal and delay in filing the instant appeal is accordingly condoned. 3. The assessee has raised the following grounds of appeal: "i. For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in confirming the adjustment in the intimation issued u/s. 143(1) made by the AO (CPC) on account of employees' contribution towards provident fund which was deposited before the due date ....
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....4.2021, the assessee is in appeal before us. 6. At the time of hearing the Ld. counsel for the assessee submitted that the issue No. 1 is in respect of employees' contribution towards provident fund which was deposited before the due date of filing of return u/s. 139(1) is covered by the decision of the coordinate bench. 7. He further pointed out that this issue raised by the assessee is no longer res integra. According to the authorities below, since the assessee has not remitted the employees' contribution towards PF & ESI on or before the due date as prescribed by the PF & ESI Act, the contribution made belatedly cannot be allowed. However, according to the assessee, since the assessee has undisputedly made the remittance i....
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....ar 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 adjudicate this issue whether the amendment brought in by Finance Act, 2021 is prospective or retrospective in operation. We note that before this amendment has been inserted by Finance Bill, 2021, the Hon'ble Jurisdictional Calcutta High Court in the case of Shri Vijayshree Ltd. Ltd. (supra), M/s. Philips Carbon Black Ltd. (supra), M/s. Coal India Ltd.(supra), M/s. Akzo Nobel India Ltd. (supra) has held....
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.... 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" to the Bill which are (i) prospective amendment with effect from a fixed date; (ii) retrospective amendment with effect from a fixed anterior date; and (iii) clarificatory amendments which are retrospective in nature. So when we adjudicate whether the view of Ld. CIT(A) that the explanation 2 brought in by Finance Act, 2021 is retrospective, let....
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.... Ltd.(supra), M/s. Akzo Nobel India Ltd. (supra), we set aside the impugned order of Ld. CIT(A) and direct the AO to allow the claim of deduction in respect of employees contribution shares towards ESI, PF, by the assessee before the due date of filing of return u/s. 139(1) of the Act. Therefore the appeal of assessee succeeds and so, it is allowed in favour of assessee. 8. Therefore, in the light of the above judicial precedent [supra], we are inclined to allow the appeal of the assessee and direct the A.O. to delete the addition and hold that the Amendment brought in Finance Act 2021 w.e.f. 01.04.2021 by inserting an Explanation to section 36(1)(va) and section 43B of the Act is prospective in nature and would apply from AY 2021-22 onw....