Case Law Details
N.R. Kumaraswamy Vs Asst. Director Income Tax CPC (ITAT Bangalore)
ITAT held that amended provisions of section 43B as well as 36(1)(va) of the I.T. Act are not applicable for the assessment year 2018-19. By following the binding decision of the Hon’ble jurisdictional High Court in the case of Essae Teraoka Pvt. Ltd Vs. DCIT (supra), the employees’ contribution paid by the assessee before the due date of filing of return of income u/s 139(1) of the I.T. Act is an allowable deduction. Accordingly, we decide this issue in favour of the assessee and the disallowance made by the Assessing Officer is deleted.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The assessee has filed this appeal challenging the order dated 23.12.2021 passed by Ld. CIT(A), National Faceless Appeal Centre, Delhi and it relates to the assessment year 2018-19.
2. The assessee filed return of income for AY 2018-19 on 31.10.2018 declaring total income of Rs.44,88,550/-. In an intimation issued u/s 143(1) of the Income-tax Act,1961 [‘the Act’ for short], the Centralized Processing Centre (CPC) added a sum of Rs.68,76,397/- under the head Profits & Gains from business representing employees’ share of contribution to ESI to the extent not paid on or before the due date as mentioned in Sec 36(1)(va) of the Act.
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