Note :
Memorandum explaining the provision states that this amendment will take effect from Ist April , 2021 and will , accordingly , apply in relation to the assessment year 2021 -22 and subsequent assessment years (2021) 430 ITR 214 (st) (243). In the case of CIT vs. Hindustan Organics Chemicals Ltd [2014] 366 ITR 1 (Bom.) (Para 9) held that where assessee company made payment of employees contribution towards provident fund, assessee’s claim could not be disallowed on account of delayed payment in view of amendment to section 43B. In CIT v. Vatika Township (2014) 367 ITR466 (SC) (Five Judges Bench) Levy of surcharge on block assessment years pertaining prior to ist June 2002 is held to be not valid. Court held that proviso to section 113 of the Income –tax Act, 1961, by the Finance Act, 2002, w.e.f 1-6 – 2002 , it is clearly a substantive provision and is to be construed as prospective in operation. The amendment neither purports to be merely clarificatory nor is there any material to suggest that it was intended by Parliament. The same principle should apply for interpretation of amendment to section 43B of the Act . However some of the CIT (A) have taken the view that the amendment is retrospective . We hope the Appellate Tribunal will decide the issue in due course of time .

Dr. K. Shivaram Senior Advocate

Notice