ITAT deletes PF Disallowance: Sec 36(1)(va) & 43B amendment by Finance Act 2021 applicable from AY 20-21

The Income Tax Appellate Tribunal (The “ITAT”) in the matter of M/s Sandhu Automobiles Pvt. Ltd. said that the amendments carried out in section 36 ( 1 ) ( va) and 43 B by the Finance Act, 2021 consistently have been held to be prospective in nature and will kick in from 2020 – 21 Assessment Year.

In this case the year under consideration is 2018 – 19 Assessment Year and addition on account of Late Payment of PF in respect of employees contribution was deleted by ITAT.

Relevant Extract:

7. We have heard the submissions and perused the material available on record. It is seen that in the facts of the present case no doubt that there was a delay in the payments of PF in respect of employees contribution as far as timeline set out by the relevant statute is concerned. However, it is not disputed that the payments of PF amounting to Rs. 4,62,844 /- was paid well before the furnishing of the return. Accordingly, considering the position of law as has been consistently considered by the ITAT we allow the ground. The amendments carried out in section 36(1)(va) and 43B by the Finance Act, 2021 consistently have been held to be prospective in nature and will kick in from the 2020 – 21 Assessment Year.

The Pronouncement was made by T.R. Senthil Kumar (Diva Singh) and Vikram Singh Yadav (Accountant Member)

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