In the Income Tax Appellate Tribunal of Delhi, the case of Vandana Dubey vs. ITD, CPC, Bengaluru addressed the disallowance of Rs.23,91,063 for delayed contributions to Provident Fund (PF) and Employee State Insurance (ESI) for the assessment year 2019-20.
The case, filed by Vandana Dubey as the legal representative of the deceased Desh Deepak Dubey, contested the disallowances made by the Central Processing Centre in Bengaluru. The disallowances were based on the payments not being made within the due dates specified by the relevant Acts and Rules.
During the proceedings, the amendment to Section 36(1)(va) by the Finance Act 2021, effective from April 1, 2021, was a focal point. The Commissioner of Appeals upheld the disallowance, interpreting the amendment as clarificatory and applicable retrospectively, affecting the assessment year in question.
The tribunal, led by Judicial Member Shri Saktijit Dey, reviewed the amendments and previous judicial precedents, particularly the case of Mr. Vansh Jain vs. DCIT. The tribunal determined that the amendments should apply prospectively, not affecting the current assessment year. Consequently, the tribunal ruled in favor of the assessee, allowing the claim for deductions.
This decision highlights the importance of the timing of legislative amendments and their application. It underscores the need for clear guidelines regarding the retrospective application of such changes, ensuring fair adjudication based on the law as it stood at the time of filing.
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