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Income Tax Appellate Tribunal, HYDERABAD BENCHES “A” : HYDERABAD
Before: SHRI S.S.GODARA & SHRI LAXMI PRASAD SAHU
PER S.S.GODARA, J.M. : This assessee’s appeal for AY.2018-19 arises from the from the National Faceless Appeal Centre (NFAC), Delhi’s order dated 17-12-2021 passed in DIN & Order No.ITBA/NFAC/S/250/2021-22/1037893750(1), involving proceedings u/s.143(1) of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case file perused.
Coming to the assessee’s sole substantive issue raised herein of Section 36(1)(va) ESI/PF disallowance of Rs.10,24,086/- (as against the actual amount stated of Rs.9,72,543/-) made in both the lower proceedings, the assessee’s and Revenue’s pleas before us are that the same has been paid before the due date of filing Sec.139(1) return and after the due date prescribed in the corresponding statute(s); respectively. We notice in this factual backdrop that the legislature has not only incorporated necessary amendment in Sections 36(1)(va) as well as u/s. 43B vide Finance Act, 2021 to this effect but also the CBDT has issued 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 with prospective effect from 01-04-2021 only, we hold that the impugned disallowance is not sustainable in view of all these latest developments. The impugned ESI/PF disallowance is deleted therefore. No other ground has been pressed before us.
This assessee’s appeal is allowed in above terms.
Order pronounced in the open court on 10th March, 2022