TaxTMI 
TaxTMI 
2022 (6) TMI 890
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....Act, on account of late deposit of PF/ESI following the amendment in 43B regarding Employees' Contribution of Provident Fund, ESI or any other welfare fund under Finance Act 2021 ignoring the fact that amendment made in section 43B is not with retrospective effects. Addition made u/s 143(1) by CPC is void abinitio therefore it is prayed before your honor the same may kindly be deleted. 2. The Learned Commissioner of Income Tax (Appeals) has erred in law and on facts in confirming the addition made by CPC in disallowing the payment of Employees' contribution of ESI/PPF on the ground that the amount was paid after due date by the assessee, whereas, the appellant deposited the ESI and PF before due date of filling the return of income. It i....
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.... favour of the Assessee's contention and of the Revenue. The controversy with regard to divergent views of different High Courts, has been settled by the Hon'ble Apex Court in the case of CIT Vs. M/s. Vegetables Products Ltd. (88 ITR 192) by laying down the dictum 'if two reasonable constructions of a taxing provision are possible that construction which favours the Assessee must be adopted.' 6. The issue under controversy travelled upto the Hon'ble Apex Court in the cases of Rajasthan State Beverages Ltd (2017) 84 Taxmann.com 185 (SC), CIT Vs. Alom Extrusion Ltd (2010) 1 SCC 489, CIT Vs. Vinay Cement Ltd 213 CTR 268 and the Hon'ble Apex Court clearly held the amount claimed on payment of PF and ESI if deposited on or before due date o....
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....d objective is to treat belated payment of employee's provident fund (EPD) and employee's State Insurance Scheme (ESI) as deemed income of employer under section 2(24)(x) of the Act." 9. Even the Hon'ble Punjab and Haryana High Court in the case of CIT Vs. M/s Hemla Embroidery Mills (P) Ltd. (366 ITR 167) (P&H) and in the case of CIT Vs. M/s Mark Auto Industries Ltd. (358 ITR 43) (P&H) 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. 10. From the aforesaid Judgments of the Hon'ble High Courts, it is clear that the Hon'ble Courts have not drawn any distinction between the em....