2025 (2) TMI 1832

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.... "1. On the facts and circumstances of the case and in law, the Ld. ITO has erred in making addition of the contingent liability of Rs. 83,46,490, when the said sum was not charged & debited to profit & loss account, which is bad in law and uncalled for. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming the addition of the contingent liability of Rs. 83,46,490 which is bad in law and uncalled for. 3. On the facts and circumstances of the case and in law, the Ld. ITO has erred in making disallowance for EPF Contribution of Rs. 1,69,124 in the income tax return u/s 143(1), which is out of the scope of section 143(1) and bad in law. 4. On the facts and circumstances of t....

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....r. No.1 in row 'g' being particulars debited to profit & loss account being income tax demand of penalty of Rs. 10,49,010/- and TDS of Rs. 72,97,480/- totaling Rs. 83,46,490/-. However, on verification, it is seen that row 'g" was the particulars of any liability of contingent in nature and not the amount debited the Profit & Loss Account. Further, on perusal, the column-7 of the return represented amount debited to Profit & Loss Account to the extent disallowable u/s 37 of the Act in which capital expenditure amounting to Rs. 6,644/- is mentioned. Therefore, it appears that the confirmation by the Addl./JCIT(A) of the contingent liability amounting to Rs. 83,46,490/- needs re-verification. We, therefore, set-aside the order of the Addl./JC....

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....oyees within due date as mandated by such laws. However, the appellant has failed to make payment within the due date. Hence, in the light of the Hon'ble Supreme Court's Judgment in the case of Checkmate Services private limited Vs CIT, the addition made by the CPC are found to be justified and are hereby confirmed. Accordingly, the above ground of appeal raised by the appellant are dismissed." 5.2. In view of the order of the Addl./JCIT(A) in relying upon the decision of Hon'ble Supreme Court in the case of Checkmate Services Pvt. Ltd. vs CIT (supra), the order of the Addl./JCIT(A) is justified. However, the Co-ordinate Bench in the case of Sentinel Consultants (P) Ltd. vs. ACIT on 12 June, 2023 [2023] 153 taxmann.com 151 restor....