Case Law Details
Eskay Heat Transfers Private Limited Vs ADIT (ITAT Bangalore)
Till Assessment Year (AY) 2020-2021 Assessee would be entitled to deduction of employees’ contribution to PF and ESI provided that the payments were made prior to the due date of filing of the return of income u/s 139(1) of the I.T.Act as Amendment by Finance Act, 2021, to section 36[1][va] and 43B of the Act is not clarificatory and are applicable from Assessment Year 2021-22.
The amended provisions of section 43B as well as 36(1)(va) of the I.T.Act are not applicable for the assessment years under consideration. 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
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal at the instance of the assessee is directed against CIT(A)’s order dated 20.08.2021. The relevant assessment year is 2019-2020.
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