Case Law Details
Methods (India) Private Limited Vs DCIT (ITAT Bangalore)
In this case there is no dispute that the assessee made payment of the Employees share of PF/ESI on or before the due date for filing return of income for AY 2017-18 u/s. 139(1) of the Act. The next aspect to be considered is whether the amendment to the provisions to section 43B and 36(1)(va) of the Act by the Finance Act, 2021, has to be construed as retrospective and applicable for the period prior to 01.04.2021 also. On this aspect, we find that the explanatory memorandum to the Finance Act, 2021 proposing amendment in section 36(1)(va) as well as section 43B is applicable only from 01.04.2021. These provisions impose a liability on an assessee and therefore cannot be construed as applicable with retrospective effect unless the legislature specifically says so. In the decisions referred to by us in the earlier paragraph of this order on identical issue the tribunal has taken a view that the aforesaid amendment is applicable only prospectively i.e., from 1.4.2021. We are therefore of the view that the impugned additions made under section 36(1)(va) of the Act, deserves to be deleted.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is an appeal filed by the assessee against order dated 12.11.2021 of CIT(A) National Faceless Appeal Centre (NFAC), Delhi, relating to Assessment Year 20 19-20.
2. The assessee is a Private Limited Company. The assessee filed return of income for AY 2019-20 declaring total income of Rs.Nil. In an intimation dated 29.06.2020 issued u/s.143(1) of the Act, the Centralized Processing Centre (CPC) added a sum of Rs. 46,87,690/- 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 Income Tax Act 1961.
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