TaxTMI 
TaxTMI 
2022 (9) TMI 702
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....al, however, his grievance revolves around a single issue, namely ld. Pr. CIT has erred in taking cognizance under section 263 of the Income Tax Act. 3. In response to the notice of hearing, no one has come present on behalf of the assessee. With the assistance of ld. CIT(DR), we have gone through the record carefully. A perusal of the ground would indicate that the assessee was required to make employees' contribution of Rs. 5,70,002/- to P.F. & ESI Accounts. According to the assessee, except Rs. 1,56,346/- the whole amounts were paid before the due date provided in PF & ESI Acts. The balance amount has been paid before the due date of filing of the return. 4. The ld. CIT(DR), on the other hand, submitted that this fact is not as....
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....I 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 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 in....
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....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" to the Bill which are (i) prospective amendment with effect from a fixed date; (ii) retrospective am....
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....Snowtex Investment Ltd. (supra) and also taking note of the binding decision of the Hon'ble Jurisdictional Calcutta High Court on this issue before us in 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), 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 favor of assessee". 4. A perusal of the above would reveal that the ITAT, Kolkata has specifically propounded that if employees' contribu....