\u00a0<\/p>\n
Adjustments were made to the Assessee\u2019s return towards delay (beyond relevant law but before due date of filing return u\/s 139(1)) in deposit of employees\u2019 contribution to ESI \/ PF received by Assessee by intimation under S. 143(1)(a). The Assessee submitted that the adjustment was erroneous since, inter alia, on the date of receipt of intimation, which was 28.05.2020, Explanation 5 to S. 43B was not on the statute books and it cannot be construed retrospectively. The CIT(A) allowed the Assessee\u2019s submissions. However, the ITAT restored the disallowance following the ruling in Checkmate Services (P) Ltd. (2022)448 ITR 518(SC).<\/p>\n
On appeal, the Delhi High Court \u00a0affirmed the ITAT order. The High Court \u00a0held that: (a) the non-obstante clause in S. 43B cannot be applied to employees’ contributions governed by S. 36(1)(va); (b) Alom Extrusions Ltd. (319 ITR 306)<\/em> has been distinguished as the same has not considered S.s 2(24)(x) and 36(1)(va); (c) Explanation 5 to S. 43B was not considered at all while arriving at the decision that employees’ contribution must be deposited on or before the due dates under relevant statutes; (d) Supreme Court has upheld the ruling of the Gujarat HC in Gujarat State Road Transport Corporation (366 ITR 170) which was in existence on the date of the intimation; (e) Explanation 5 is clarificatory and hence would have a bearing on earlier years as well. Court also held that \u00a0<\/strong>assessee made payments before the due date of submission of the income-tax return. Since the due date fell on a date which was a National Holiday, i.e., 15-8-2018, the deposit could have been made by the assessee only on the date which followed the National Holiday, i.e., 16-8-2018. Therefore, the \u00a0amount deposited on 16-8-2018 was to be allowed as a deduction to the assessee\u00a0 (AY. 2019-20)<\/p>\n","protected":false},"excerpt":{"rendered":" S.43B: Deductions on actual payment-Explanation 5 to S. 43B, which was inserted by Finance Act, 2021 with effect from 1-4-2021 is clarificatory in nature and would apply retrospectively-Due date fell on a date which was a National Holiday, i.e., 15-8-2018, deposit could have been made by assessee only on date which followed National Holiday, i.e., 16-8-2018-the amount deposited on 16-8-2018 was to be allowed as deduction to assessee.[S. 36(i)(va), 139(1), 143(1(a)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64650","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gOK","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64650"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64650\/revisions"}],"predecessor-version":[{"id":64651,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64650\/revisions\/64651"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}