JUDGMENT

S.H. Kapadia, J. —

1. Delay condoned.

2. Leave granted.

3. A short question which arises for determination in this batch of civil appeals is: whether omission [deletion] of the second proviso to Section 43-B of the Income Tax Act, 1961, by the Finance Act, 2003, operated with effect from 1st April, 2004, or whether it operated retrospectively with effect from 1st April, 1988?

4. Prior to Finance Act, 2003, the second proviso to Section 43-B of the Income Tax Act, 1961 [for short, “the Act”] restricted the deduction in respect of any sum payable by an employer by way of contribution to provident fund/superannuation fund or any other fund for the welfare of employees, unless it stood paid within the specified due date. According to the second proviso, the payment made by the employer towards contribution to provident fund or any other welfare fund was allowable as deduction, if paid before the date for filing the Return of income and necessary evidence of such payment was enclosed with the Return of income. In other words, if contribution stood paid after the date for filing of the Return, it stood disallowed. This resulted in great hardship to the employers. They represente