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158 orders · Page 4 of 4
The Tribunal held that the amendment to Section 36(1)(va) by the Finance Act, 2021, is prospective and not retrospective. Therefore, for AY 2018-19, the disallowance of employees' PF/ESI contributions paid belatedly but before the due date of filing the return under Section 139(1) is not permissible.
The Tribunal set aside the CIT(A)'s orders and restored the matter to the Assessing Officer for de novo assessment, acknowledging that neither party was fully satisfied and a complete examination was needed.
The Tribunal held that the amendment brought by the Finance Act, 2021, regarding the disallowance of delayed employees' PF/ESI contributions, is prospective. Therefore, for the assessment year in question, the assessee's claim for deduction, if paid before the due date of filing the return of income, is allowable.
The Tribunal held that the disallowance was incorrect, following the jurisdictional High Court and co-ordinate bench decisions. The amendment by the Finance Act, 2021, was prospective, and prior to that, payments made before the return filing due date were allowable.
The Tribunal held that the addition was not warranted as the deposit was made before the due date of filing the return of income. The Explanation-5 to Section 43B, which was introduced later, was not applicable to the assessment year under consideration.
The Tribunal held that the CIT(A) failed to exercise his appellate jurisdiction and that the mistake regarding TDS credit was apparent on record. The impugned order of the CIT(A) was set aside, and the AO was directed to grant the due TDS credit after verification.
The Tribunal held that no disallowance is attracted under Section 14A r.w. Rule 8D(2)(ii) if the assessee has sufficient interest-free funds to meet investments, as per Supreme Court rulings. For Rule 8D(2)(iii), only investments yielding tax-exempt income should be considered for disallowance.
The Tribunal allowed the assessee to withdraw the appeal. The grounds raised were considered premature, and the issue was left open for future agitation if permitted by law.