Case Law Details
Mai Manpower Solutions LLP Vs ADIT (CPC) (ITAT Nagpur)
Held that explanation 5 to section 43B has prospective effect. Hence, learned NFAC is not justified in disallowing the belated remittance of employees contribution to PF/ESI but paid within the due date of filing the return of income under the normal provisions of the I.T. Act.
Facts- Department disallowed Rs. 102699/- being belated payment of employees contribution to PF/ ESI. Accordingly, appeal was filed before CIT(A). Learned NFAC held that held that the Explanation 5 inserted to section 43B of the Act is only clarificatory in nature has retrospective application, addition was confirmed by him.
Being aggrieved, assessee preferred the present appeal.
Conclusion- Held that Explanation 5 shall have effect w.e.f. 1.4.2021 only. Therefore, having regard to legal position stated herein above it can be held that the Explanation 5 to section 43B shall have only a prospective application. Accordingly, we hold that the ld. NFAC is not justified in disallowing the belated remittance of employees contribution to PF/ESI but paid within the due date of filing the return of income under the normal provisions of the I.T. Act. Accordingly, we reverse the order of the ld. NFAC with this extent. Thus, this ground of appeal stands allowed.
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