VIJAY NIRMAN COMPANY PRIVATE LIMITED ,HYDERABAD vs. DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE-17(2), HYDERABAD

The contention of the assessee is that the assessee remitted the amount before the due date of filing of return of income, there

ought not to have any disallowance. The Id. A.D. has not considered the submissions of the assessee and addition was made an amount of Rs.8,27,36,716. Aggrieved the assessee preferred an appeal before the Id. C1T(A). After considering the submissions of the assessee, Id. CIT(A) confirmed the addition made by the Assessing Officer.

On being aggrieved, the assessee preferred an appeal before us.

We have heard both the sides and perused the material available on record. The main issue of ESI/PF disallowance of Rs.8,27,36,7616/- made in both the lower proceedings, the rival stands adopted throughout and that the same had been paid before the due date of filing Sec.139(l) 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(l)(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.

It was observed that the audit party raised an objection that the payments are made beyond the due date of filing of return u/s.139(1) of the Act. But the contention of the assessee is that all the payments were made before filing of the due date of return of income. Therefore, we deem it fit that the matter should go back to the file of Assessing Officer, to examine whether the payments were made within the due date of filing of return or beyond due date of filing of the return. If the payments were made before due date of filing of return, the assessee is entitled to claim deduction u/s.36(1)(va) as well as u/s. 43B of the Act.

In the result, the appeal of assessee is allowed for statistical purposes. Pronounced in the open court on 27th Jan., 2022. Sd/- Sd/- (A.MOHAN ALANKAMONY) (DUVVURU RL REDDY) Accountant Member Judicial Member Hyderabad, Dt. 27.01.2022. * Reddy gp Copy to :