TaxTMI 
TaxTMI 
2022 (6) TMI 727
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....trospectively, whereas the said amendment is applicable from 1.4.2021 and not applicable to the year under consideration as interpreted by various Hon'ble courts. 4. That the Ld. CIT(A) has grossly erred in upholding the intimation order passed u/s. 143(1) by the AO, CPC, Bangalore without appreciating the fact that intimation order is without proper jurisdiction, passed without proper and reasonable opportunity of being heard & beyond the scope and powers enshrined u/s. 143(1). 5. Without prejudice to the aforesaid grounds of appeal and strictly in the alternative, the Ld. CIT(A), has grossly erred in not allowing the deduction of genuine and legitimate business expenditure duly allowable under section 37 of the Income Tax Act. 6. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard and disposed off." 2. At the time of hearing, no one was present on behalf of the assessee. However, considering the record, it was deemed appropriate to proceed with the present appeal ex-parte qua the assessee appellant on merits. 3. A perusal of the record shows that the appeal of the assessee has been dismissed....
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....the case of CIT Vs. Alom Extrusions Ltd. 319 ITR 306 (S.C.) have addressed the legal position, though it need be clarified that the decision rendered was in the context of amendments carried out by way of Second Proviso to Section 43B which was omitted by Finance Act, 2003. This Amendment was held to be clarificatory and hence would operate retrospectively. In the facts of the present case, Amendment by way of Explanation 2 to Section 36(va) and Explanation 5 to Section 43B by Finance Act, 2021 had been held to be having prospective effect. For the said purposes relying upon the Notes on Clauses at the time of introduction of the Finance Bill, 2021, the Co-ordinate Benches have consistently held that the said amendments have been inserted w.e.f. assessment year 2020-21 assessment year. For ready reference, relevant extract from ITA No. 194/CHD/2021 in the case of Surya Resorts Pvt. Ltd. Dharamshala is given below: "4. We have heard the rival submissions and perused the material available on record. It is an admitted fact that there was a delay in the payment of EPF relatable to the employees' contribution as far as the time limit set out by the specific Act is concerne....
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.... learned departmental representative and perused the orders of the lower authorities. The facts shows that the assessee has collected the sum of Rs. 12,16,260/- being employee's contribution under the provident fund and with respect to ESI laws. The above contribution was admittedly not deposited by the assessee within the due date prescribed under the respective ESI and PF statue however, same was deposited before the due date of filing of return of income. Therefore, the Ld. AO as well as the Ld. CIT(A) disallowed the same holding that such contribution becomes the income of the assessee under the provision of section 2(24)(x) of the Act and thereafter if the same is deposit within the due date prescribed under the respective laws then same is allowable as deduction u/s. 36(1)(va) of the Act. Coordinate bench in case of DOT Vs. Dee Development Engineers in ITA No. 4959/DEL/2016 (A.Y. 2011-12) has held as Under:- 7. We have heard both the parties and perused all the relevant material available on record. As regards Ground No. 1, the asses see company has not deposited the employees' contribution within the due date which is prescribed under the said statute i.e. P....
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....r funds on or before the due date. Explanation to the said clause provides that for the purposes of this clause, "due date" means the date by which 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 thereunder 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 that the above amendment do not apply to the assessment year 2014-15 in this appeal. 8. In view of this we allow the solitary ground of appeal raised by the assessee holding that the addition/disallowance made by the learned assessing officer of late deposit of employees contribution to the provident fund ....
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....rder dated 03.08.2021 in Insta Exhibitions Pvt. Ltd. Vs. Addl. CIT, New Delhi in ITA No. 6941/Del/2017 of the Delhi Benches; order dated 01.07.2021 of Hyderabad Benches in M/s. Crescent Roadways Pvt. Ltd. V. Dy. CIT, Hyderabad in ITA No. 1952/Hyd./2018, order dated 27.08.2021 in the case of M/s. Jupiter Aqua Lines Pvt. Ltd. Vs. DCIT ITA 83/CHD/2021 and order dated 04.10.2021 in the case of Ajay Piplani Vs. Assistant Director of Income Tax, CPC, Bengaluru in ITA No. 114/CHD/2021 of the ITAT Chandigarh Benches. Reference may also be made to various other orders of the Chandigarh Benches in ITA 250/CHD/2021 in the case of Shri Sukhdev Singh, Mohali and ITA 255/CHD/2021 in the case of M/s. CZAR FAUCETS Ltd. Chandigarh wherein consistently following the decisions of the jurisdictional High Court in the case of CIT Vs. Nuchem Ltd. (ITA No. 323 of 2009) and CIT Vs. Hernia Embroidery Mills Pvt. Ltd. (2014) 366 ITR 167, the Tribunal has consistently allowed similar claims of the assessee holding that the Amendments effected by the Finance Act 2021 to section 36(1)(va) and u/s. 43B of the income Tax Act are not clarificatory in nature and they do not have retrospective effect and are applica....