TaxTMI 
TaxTMI 
2022 (4) TMI 1622
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....ed its return of income for A.Y. 2019-20 on 30.10.2019 declaring total income at Rs. 3,74,072/-. The return of income was processed by Centralized Processing Centre (CPC), Bengaluru u/s 143(1) of the Act by order dated 06.05.2020 determining total income at Rs. 46,82,740/- by inter alia making addition of Rs. 42,57,824/- on account of alleged late payment of Employees' contribution towards EPF/ESI by invoking the provision of Section 36(1)(va) of the Act. 4. Aggrieved by the order of AO, assessee carried the matter before the CIT(A)-NFAC who vide order dated 14.12.2021 in Appeal No. CIT(A), Ghaziabad/10048/2020-21 partly allowed the appeal of the assessee. Aggrieved by the order of CIT(A)-NFAC, assessee is now in appeal and has raised the ....
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.... Learned AR submitted that the sole grievance of the assessee is the disallowance of Rs. 42,57,824/- on account of delay in deposit of employee's contribution towards provident fund and ESI fund. 8. Before me, Learned AR submitted that addition of Rs. 42,57,824/- has been made in the intimation issued by CPC, Bangalore u/s 36(1)(va) of the Act for the reason that the contribution received towards PF/ESIC by the assessee from its employees was not deposited before the due date. He submitted that though there has been delay in deposit of PF/ESIC Contributions but all the contributions received by the assessee from its employees have been deposited with the appropriate authorities before the filing of return of income by the assessee. He ther....
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.... filing of return of income by the assessee. The aforesaid contention of the Learned AR has not been controverted by Learned DR. I find that the various Benches of the Tribunal at Delhi and other Tribunal have held that the delayed deposits of PF & ESIC before the date of filing of return is an allowable expenditure and for which reliance was placed on the decision of Hon'ble Delhi High Court in the case of AIMIL Ltd. (supra). As far as reliance by Learned DR on the amendment brought out by Finance Act 2021 is concerned, "notes on clauses" to the Finance Bill 2021 clearly states that the amendment will take effect from 1st April 2021 and will apply in relation to the A.Y. 2021-22 and subsequent assessment year. In such a situation, I am of ....