PUSHPAK STEEL INDUSTRIES PVT.LTD,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME TAX,, PUNE

This appeal by the assessee against the order dated 27-08-2021 passed by the National Faceless Appeal Centre (NFAC), Delhi for assessment year 2019-20.

The only issue is to be decided is as to whether the CIT(A) justified in confirming the disallowance made u/s 36(1)(va) of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟).

The Assessing Officer (AO), CPC, Bangalore disallowed Rs.42,235/- on account of non-payment of contribution to Employees‟ Provident Fund and Employees State Insurance before the due date as prescribed. It was contended that the said amount relating to employees‟ contribution was paid within due date relating to filing of return of income. The CIT(A) found the said submissions not acceptable and confirmed the disallowance made by the AO, CPC, Bangalore for late payment which is not covered u/s 43B of the Act. There is no dispute regarding the said payment within due date of filing of return of income and the amendment by way of Explanation (1) to clause (va) of sub-section (1) of section 36 of the Act w.e.f. 01.04.2021 is not applicable in view of the present year under consideration i.e. A.Y. 2019-20. Thus, the disallowance confirmed by the CIT(A) is not justified and the assessee is entitled to get deduction. Thus, the grounds raised by the assessee are allowed.

In the result, appeal of assessee is allowed.