Case Law Details
360 Realtors LLP Vs ADIT (ITAT Delhi)
ITAT Delhi held that amendments to section 36(1)(va) by Finance Act 2021 are retrospective or prospective is debatable and controversial and any adjustments u/s 143(1) of Income Tax Act by way of intimation, on debatable and controversial issues, is beyond the scope of Section 143(1).
Facts-
The first issue is regarding addition of Rs.58,72,654/- made u/s 36(1)(va) of Income Tax Act, 1961. These payments by way of employees’ contribution to ESI/Provident Fund were deposited by the assessee after the specified date prescribed under the relevant laws governing ESI and Provident Fund. However, payments were deposited by the assessee well before due date of filing of return of income under Section 139(1) of Income Tax Act. The assessee filed appeal before Ld. CIT(A) on 27/02/2021, which was disposed of by the CIT(A) vide impugned appellate order dated 15/12/2021; wherein the CIT(A) confirmed the aforesaid additions amounting to Rs.58,72,654/; taking the view, that amendment to section 36(1)(va) of the Act, by way of insertion of Explanation-2 brought in by Finance Act, 2021; is retrospective in nature, and is applicable for AY 2019-20. Aggrieved, the assessee has filed this present appeal.
Conclusion-
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