2025 (11) TMI 397

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....04.2019. 2. The sole issue involved in appeal with regard to the disallowance of Rs. 4,98,569/- made on account of delayed deposit of Employees Contribution to Provident Fund made by way of prima facie adjustment u/s 143(1) of the Act. 3. From the perusal of the orders of the lower authorities, it is seen that the CPC while processing the return of the assessee u/s 143(1) in terms of impugned order dated 26.04.2019 has made disallowance of delayed payment of employees's contribution towards PF/ESI by invoking the provisions of section 36(1)(va) read with section 2(24)(x) which stood confirmed by the Ld. CIT(A) by placing reliance on various judgements of Hon'ble High Courts. 4. During the course of hearing, none was present on beha....

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....d u/s 143(1) of the Act by the CPC, it is seen that the said order is passed on 26.04.2019 and further order of Ld. CIT(A) is dated 28.09.2021 and therefore, when both the orders of lower authorities were before the judgment of Hon'ble Supreme Court in the case of Checkmate Service Pvt. Ltd. (supra) which was not delivered at that point of time, where the issue was highly debatable and disallowance u/s 143(1) could not be made on such issue. The Hon'ble Chhattisgarh High Court in the case of Raj Kumar Bothra (supra) while dealing this issue has held as under: "15. In the instant case, the ITAT has committed a grave legal error by relying upon the decision rendered by this Court in M/s. BPS Infrastructure (supra), wherein, this Cour....