TaxTMI 
TaxTMI 
TaxTMI 
2026 (2) TMI 158
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....me Tax Act, 1961 [hereinafter referred to as "the Act"] wherein the adjustment made vide intimation u/s 143(1) of the Act by the CPC, Bangaluru were confirmed and appeal was dismissed. 2. The facts in brief as culled out from the order of the authorities below are that the appellant/assessee filed its return for the concerned year which was processed u/s 143(1) of the Act and after making adjustment of a sum of Rs. 5,51,903/- u/s 36(1)(va) of the Act regarding late deposit of PF and ESI of employees' share, necessary intimation was issued. 3. Aggrieved by the said adjustment, the assessee filed appeal before the Ld. CIT(A) stating that the intimation u/s 143(1) of the Act was received from the AO containing disallowance of Rs. 5,51,90....
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....re beyond the scope of the provisions of 5.431(1), being debatable & without jurisdiction and void ab initio, THUS subject order is liable to be quashed 3-That on the facts and in the circumstances of the case and in law, Ld CIT-A erred in sustaining the order passed by Ld AO (acting through CPC) in making disallowance of Rs. 5,51,903/- u/s 36(1)(va) of Income tax Act on account of alleged variance as per Tax Audit Report r/w schedule Ol of the Income Tax Return (point 6k) and that too mechanically without passing any speaking order. 4-That on the facts and in the circumstances of the case and in law, Ld CIT-A erred in sustaining the order passed by Ld AO as it was passed mechanically without following the principle of nat....
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....r dated 11.05.2023, Satpal Singh Sandhu vs. DCIT. The identical issues were decided in favour of the assessee and the intimation issued u/s 143(1) of the act as well as the first appellate authority order were quashed. 8. The Ld. Sr. DR on the other hand supported the judgment of the Ld. CIT(A) and prayed for dismissal of the appeal because the assessee's auditor has categorically qualified his audit report and furnished details of the delayed deposit of the employees share of contribution towards PF/ESI as referred u/s 36(1)(va) of the Act. There was no infirmity of the order of the Ld. AO while processing the returning of income u/s 143(1) of the Act. 9. We have considered the rival submissions and examined the record. The issue bef....
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....20.02.2023; and ITAT, Delhi in the case of M/s. 360 Realtors LLP Vs. ADIT, CPC in ITA No.303/Del/2022 and Garg Heart Centre & Nursing Home Private Limited, ITA No.1700/Del/2022. 15. On the basis of my aforesaid observations, I am of the considered view that as the issue involved in the present appeal is squarely covered by the order of the ITAT Mumbai in the case of Kalpesh Synthetics (P) Ltd. Vs. DCIT (supra), therefore, I respectfully follow the same and vacate the addition of Rs. 19,91,318/- that was summarily made by the A.O, CPC u/s. 143(1)(a) of the Act. Accordingly, I set-aside the order of the CIT(Appeals) and vacate the addition of Rs. 19,91,318/- made by the A.O u/s. 143(1)(a) of the Act." 10. Shri Satpal Singh Sandhu ....
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....a) of the Act of 1961, the subject issue was highly debatable and ultimately, that issue was resolved by their Lordships in the matter of Checkmate Services Pvt Ltd (supra) on a later date. 18. As a fallout and consequence of above-stated discussion, the prima facie disallowance of impugned contribution towards ESI and EPF under Section 36(1)(va) read with Section 2(24)(x) of the Act of 1961 made by the Assessing Officer under Section 143(1)(a) by order dated 16.12.2021 is hereby set-aside. Consequently, the order dated 15.07.2024 passed by the CIT (Appeals) and the subsequent order dated 26.09.2024 passed by the ITAT are also set-aside. However, liberty is reserved in favour of the respondent/Revenue to proceed in accordance with ....