PF and ESI as per Section 36(1)(va) of the Income Tax Act

Last updated: 05 September 2021

Court :
ITAT Hyderabad

Brief :
This is assessee’s appeal for the A.Y 2018-19 against the order, dated 26.04.2019 passed by the National Faceless Appeal Centre (NFAC), New Delhi in respect of the appeal filed by the assessee before the CIT (A) Tirupati.

Citation :
ITA No.292/Hyd/2021

IN THE INCOME TAX APPELLATE TRIBUNAL
Hyderabad SMC Bench, Hyderabad
(Through Video Conferencing)
Before Smt. P. Madhavi Devi, Judicial Member
ITA No.292/Hyd/2021
Assessment Year: 2018-19

Shri Thatiparthi Mohan
Reddy, Chittoor
PAN:ACCPR5574Q

(Appellant)

Income Tax Officer
Ward 1(3)
Tirupati

(Respondent)

Assessee by: Smt. C.S.Sree Lekha
Revenue by: Sri Waseem-ur-Rehman,DR
Date of hearing: 02/08/2021
Date of pronouncement: 30/08/2021

ORDER

This is assessee’s appeal for the A.Y 2018-19 against the order, dated 26.04.2019 passed by the National Faceless Appeal Centre (NFAC), New Delhi in respect of the appeal filed by the assessee before the CIT (A) Tirupati.

2. The only issue in this appeal is the disallowance u/s 36(1)(va) of the Act of delayed deposit to PF & ESI Contribution. I find that that the A.Y before the Tribunal is 2019-20 and under the Finance Act of 2021, Explanation 5 to section 43B of the Act has been introduced and also Explanation 2 to clause (va) of section 36(1) has been introduced to the effect that the provisions of section 43B shall be deemed to never have been applied to employee’s contribution to PF & ESI paid beyond the due date under the relevant Act.

3. Respectfully following the same, I hold that since the assessee has deposited the Employees Contribution to the PF and ESI before filing the return of income, the same is not to be disallowed. Assessee’s appeal is accordingly allowed.

4. In the result, assessee’s appeal is allowed.
Order pronounced in the Open Court on 30th August, 2021.

Please find attached the enclosed file for the full judgement