2022 (8) TMI 1295

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....Rs.3,87,239/- (for Assessment Year 2019-20), which were added by the ld. Assessing Officer with the aid of section 36(1)(va) read with section 2(24)(x) on the ground that employees' contributions towards PF & ESI were not deposited by the assessee within the due date provided under these two Acts. Ld. A.R. for the assessee submitted that these payments have been made before the due date of filing of the return and, therefore, the issue is covered by the decision of the Hon'ble Jurisdictional High Court in the case of (i) CIT -vs.- Vijayshree Ltd. in ITAT No. 243 of 2011 & GA No. 26607 of 2011;(ii) CIT -vs.- Philips Carbon Black Ltd. in GA No. 1382 of 2014 & ITAT 31 of 2014; (iii) CIT -vs.- M/s. Coal India Ltd. in ITA 12 of 2015 and (iv) M/s....

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....e 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 202122 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 inserted by Fi....

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....id 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 amendment with effect from a fixed anterior date; and (iii) clarificatory a....