Late Deposit of Employees Provident Fund before 01-04-2021 not to attract disallowance- ITAT Hyderabad
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Case Details: |
Value Momentum Software Services Private Limited Vs. DCIT |
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Appeal No.: |
ITA No. 2197/HYD/2017 |
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Order Pronounced by: |
ITAT Hyderabad |
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Date of Order: |
19-05-2021 |
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Assessment Year: |
2013-14 |
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In Favour of: |
Assessee |
ITAT Verdict:
Hon’ble Hyderabad held that the late deposit of Employees Provident Fund before 01-04-2021 shall not attract any disallowance. The amendments in both section 36(va) as well as section 43B by inserting corresponding explanations has prospective effect and the same will be applicable from 01-04-2021 only. It has been further stated that the legislature itself has condoned the impugned defaults prior to 01-04-2021.
ITAT Observations:
It is not in dispute that learned lower authorities held that the employees provident fund contribution had to be deposited before the due date prescribed in the corresponding statue than the due date for filing section 139(1) return. The Revenue’s case in tune thereof relies on Section 36(va) read with explanation thereto that it is not section 43B but the former provision which is applicable in such an instance. We find no merit in the Revenue’s foregoing stand. We take note of the explanatory memorandum to the Finance Act, 2021 proposing amendment in both section 36(va) as well as section 43B by inserting corresponding explanations that although the impugned employees provident fund comes under the former provision only, the same is applicable from 01-04-2021 onwards. Meaning thereby that the legislature itself has condoned the impugned default before 01-04-2021. We thus delete the impugned employees provident fund disallowance of Rs. 8,11,648/- for this precise reason alone. Necessary computation to follows as per law.
