2022 (10) TMI 154

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....f Income Tax, CPC / Learned Commissioner of Income-tax (Appeals) ["CIT(A)"] has erred in disallowing the delayed remittance of the employees contribution to PF without appreciating that the Appellant had remitted the same before the due date for filing of return of income under section 139(1) of the Act. 2. The Learned Assistant Director of Income Tax, CPC / Learned CIT(A) grossly erred in not following the judgements of the jurisdictional Karnataka High Court, which has held that in a circumstance where PF is remitted before the due date of filing return of income, the same cannot be disallowed. 3. The Learned CIT(A) has erred in holding that delay in deposit of employees' contribution to PF will not be allowed based ....

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....e Court in various cases discussed at paras 5.61 and 5.6.3 above explaining the nature and scope of declaratory/ explanatory/ clarificatory amendments, I am of the considered view that the deduction claimed by the appellant u/s 36(1)(va) of the Act has rightly been disallowed by the assessing officer. The addition of Rs.46,29,132/- is confirmed. The Grounds are, thus, dismissed" Aggrieved, assessee is in appeal before the Tribunal. 5. The learned AR submitted that an identical issue was decided in favour of the assessee by the Tribunal in the case of M/s. ShakuntalaAgarbathi Company Vs. DICT in ITA No.385/Bang/2021 (order dated 21.10.2021). 6. The learned Departmental Representative supported the orders of the Income Tax Authoritie....

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....te Road Transport Corporation reported in 366 ITR 170 (Guj.). The Hon'ble High Court was considering following substantial question of law:- "Whether in law, the Tribunal was justified in affirming the finding of Assessing Officer in denying the appellant's claim of deductions of the employees contribution to PF/ESI alleging that the payment was not made by the appellant in accordance with the provisions u/s 36[1][va] of the I.T.Act?" 7.1 In deciding the above substantial question of law, the Hon'ble High Court rendered the following findings:- "20. Paragraph-38 of the PF Scheme provides for Mode of payment of contributions. As provided in sub para (1), the employer shall, before paying the member, his....

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....ent to section 36[1][va] and 43B of the Act by Finance Act, 2021 is clarificatory and declaratory in nature. The Hon'ble Supreme Court in the recent judgment in the case of M.M.Aqua Technologies Limited v. CIT reported in (2021) 436 ITR 582 (SC) had held that retrospective provision in a taxing Act which is "for the removal of doubts" cannot be presumed to be retrospective, if it alters or changes the law as it earlier stood (page 597). In this case, in view of the judgment of the Hon'ble jurisdictional High Court in the case of EssaeTeraoka (P.) Ltd. v. DCIT (supra) the assessee would have been entitled to deduction of employees' contribution to ESI, if the payment was made prior to due date of filing of the return of income u/....