ASST. COMMISSIONER OF INCOME TAX, CIRCLE-8(1), HYDERABAD vs. DELOITTE AND TOUCHE ASSURANCE AND ENTERPRISES RISK SERVICES INDIA PRIVATE LIMITED , HYDERABAD

Coming to the sole substantive issue of ESI/PF disallowance of Rs.2,05,22,220/- which stands deleted in the CIT(A)’s order, the assessee’s and Revenue’s plea before us are that the same had been paid before the due date of filing Sec.139(1) return and after the due date prescribed in the corresponding statutes; respectively. We notice in this factual backdrop that the legislature has not only incorporated necessary amendment in Sections 36(1)(va) but also u/s.43B of the Act vide Finance Act, 2021 followed by the CBDT’s Memorandum of Explanation that the same applies w.e.f. 01- 04-2021 only. It is further not an issue that the foregoing legislative amendments have proposed employers’ contribution/disallowance u/s.43B as against employee’s contribution u/s.36 (va) of the Act; respectively. However, keeping in mind the fact that the same has been clarified to be applicable w.e.f.01-04-2021 only. We hold that the impugned disallowance has been rightly deleted in the CIT(A)’s order in view of all these latest developments. The Revenue fails in its sole substantive grievance therefore.

This Revenue’s appeal is dismissed in above terms.