ITAT Chandigarh Judgments — March 2022

The Tribunal held that the amendments to Sections 36(1)(va) and 43B by the Finance Act, 2021, are applicable prospectively from April 1, 2021, and not retrospectively. Therefore, the disallowance made by the CIT(A) was incorrect.

The Tribunal, considering the assessee's submission that reconciliation is possible with ledger accounts, granted one more opportunity to the assessee to reconcile the difference. The matter was set aside to the AO for verification.

The Tribunal held that the disallowance for late deposit of employees' contribution to ESI & PF is not sustainable if deposited before the due date of filing the return of income. The amendment by the Finance Act, 2021, is prospective and not applicable to the assessment year in question.

The Tribunal held that the disallowance made for late deposit of employees' contribution to ESI & PF is not sustainable if the deposit is made before the due date of filing the return of income. The amendment brought by the Finance Act, 2021, is prospective and not applicable to the assessment year in question.

The Tribunal held that the CIT(A) relied on the AO's remand report without providing the assessee an opportunity to comment on it. The Tribunal also noted that the additional evidence submitted by the assessee was neither accepted nor rejected by the CIT(A).

The Tribunal noted that a similar issue for a prior assessment year was set aside to the AO for re-adjudication. Following this precedent, the Tribunal also set aside the current issue to the AO for fresh adjudication after providing a reasonable opportunity of being heard to the assessee.

The Tribunal held that if the employees' PF and ESI contributions are paid after the due date under the respective Acts but before filing the return of income under Section 139(1), they cannot be disallowed under Section 43B or Section 36(1)(va) of the IT Act. The disallowance was deleted.