Case Law Details
Google India Private Limited Vs DCIT (ITAT Bangalore)
ITAT held that 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. It was further held by the ITAT that amendment by Finance Act, 2021, to section 36(1)(va) and 43B of the Act is not clarificatory
ITAT further held that amended provisions of section 43B as well as 36(1)(va) of the I.T.Act as amended vide Finance Act, 2021 are not applicable for the assessment years under consideration (I.e. 2017-18). 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
This appeal at the instance of the assessee is directed against CIT(A)’s order dated 29.10.2021. The relevant assessment year is 2017-2018.
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