Case Law Details
Anup Service Station Vs DCIT (ITAT Delhi)
If the assessee has deposited the employees’ share of contribution to PF & ESI before the due date of filing of return u/s. 139(1) of the Act, then no disallowance u/s. 36(1)(va) can be made. It has further been held that the amendment to the provisions of section 43B and 36(1)(va) of the Act by the Finance Act, 2021 has to be construed as prospective and applicable for the period after 01.04.2021. It is held that this provision imposes a liability on the assessee and therefore, cannot be construed as applicable with retrospective effect since the legislature has not specifically said so. Since the assessee in the instant case has admittedly deposited the employee’s contribution to PF & ESI before the due date of filing of return of income, therefore, we are of the considered opinion that the ld. CIT(A) is not justified in sustaining the disallowance made by the CPC.
FULL TEXT OF THE ORDER OF ITAT DELHI
These appeals by the assessee are directed against the orders passed by learned CIT(A), National Faceless Appeal Centre, Delhi dated 17.11.2021 & 13.11.2021 for the assessment years 2018-19 and 2019-20 respectively.
2. Assessee has raised common grounds in both these appeals on identical issue. The only difference is in the quantum of addition. Therefore, the grounds raised in appeal for A.Y. 2018-19 are being reproduced hereunder for the sake of brevity and convenience.
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