Held that the amendment brought to Explanation to section 43B by Finance Act, 2021 was only prospective and not retrospective and applied to assessment year 2022-23 and to subsequent assessment years thereto. Accordingly the employees’ contribution to PF, ESIC and Labour Welfare Fund paid after specified due date under relevant Acts, nevertheless paid before due date for filing of return of income for assessment year 2018-19 is allowable as deduction. (AY. 2018-19)
Geekay Facility Management (P.) Ltd. v. DCIT (2023) 198 ITD 13 (Mum) (Trib.) Jabalpur Motors Ltd. v. ADCIT (2023) 198 ITD 528 (Jabalpur) (Trib.)
S. 36(1)(va): Any sum received from employees-Paid before due date of filing of return-Allowable as deduction-Explanation to section 43B by Finance Act, 2021 was only prospective and not retrospective. [S. 43B, 139(1)]