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Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad
Before: Shri S.S. Godara & Shri Inturi Rama Rao
Assessment Year: 2018-19 M/s. Naman Trading Vs. The Deputy Commissioner Company, of Income Tax, Hyderabad. Circle 7(1), Hyderabad. PAN : AAGFN1319R. (Appellant) (Respondent) Assessee by: None Revenue by: Shri Rohit Mujumdar Date of hearing: 24.02.2022 Date of pronouncement: 24.02.2022 O R D E R Per Inturi Rama Rao, A.M. This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi’s order dated 01.12.2021 for the assessment year 2018-19.
Coming to the sole substantive issue of ESI/PF disallowance of Rs.1,30,120/- made in both the lower proceedings, the assessee’s and Revenue’s plea(s) 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) 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. 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, we hold that the impugned disallowance is not sustainable in view of all these latest developments. The impugned ESI/PF disallowance is deleted therefore.
This assessee’s appeal is allowed in above terms.
Order pronounced in the Open Court on 24th February, 2022.