AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (5) TMI 1540
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....ous, arbitrary, without jurisdiction, illegal and bad in law. 2. That the Ld. CIT(A) has grossly erred in law and on facts of the case in confirming the order passed by Deputy Commissioner of Income Tax, Circle 19(1), Delhi (hereinafter referred to as "Ld. AO") u/s 254 r.w.s. 143(1) of the Income Tax Act in case of the Appellant and making addition amounting to Rs. 2,38,15,146/- on account of late deposit of on account of late deposit of Bonus and employees contribution towards PF/ESI. 3. That on the facts and circumstances of the case and in law, original intimation order passed by Ld. AO u/s 143(1) of the Income Tax Act making an adjustment of Rs. 2,38,15,146/- dated 23.10.2019 in this case is bad in law, without jurisdiction, illegal and therefore the said intimation order is liable to be quashed. 4. That the Ld. AO and Ld. CIT(A) erred both in law and on facts in making disallowance on account of late deposit of Bonus and PF and ESI u/s 36(1)(va) to the tune of Rs. 2,38,15,146/- at the time of processing of return u/s 143(1) even though this does not fall within the ambit of prima facie adjustment as per provisions of Section 143(1)(a) of the Income T....
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....r of Income Tax (Appeals), National Faceless Appeal Centre - CIT(A), NFAC, ("Ld. CIT(A)") dated 20.08.2025 (hereinafter referred to as 'impugned appellate order') is erroneous, arbitrary, without jurisdiction, illegal and bad in law. 2. That the Ld. CIT(A) has grossly erred in law and on facts of the case in confirming the order passed by Deputy Commissioner of Income Tax, Circle 19(1), Delhi (hereinafter referred to as "Ld. AO") u/s 254 r.w.s. 143(1) of the Income Tax Act in case of the Appellant and making addition amounting to Rs. 1,73,88,975/- on account of late deposit of on account of late deposit of Bonus and employees contribution towards PF/ESI. 3. That on the facts and circumstances of the case and in law, original intimation order passed by Ld. AO u/s 143(1) of the Income Tax Act making an adjustment of Rs. 1,73,88,975/- dated 27.12.2020 in this case is bad in law, without jurisdiction, illegal and therefore the said intimation order is liable to be quashed. 4. That the Ld. AO and Ld. CIT(A) erred both in law and on facts in making disallowance on account of late deposit of Bonus and PF and ESI u/s 36(1)(va) to the tune of Rs. 1,73,88,9....
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....and u/s 234C and prays for appropriate relief." ITA No. 6602/Del/2025 "1. That on the facts and circumstances of the case, the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre - CIT(A), NFAC, ("Ld. CIT(A)") dated 20.08.2025 (hereinafter referred to as 'impugned appellate order') is erroneous, arbitrary, without jurisdiction, illegal and bad in law. 2. That the Ld. CIT(A) has grossly erred in law and on facts of the case in confirming the order passed by Deputy Commissioner of Income Tax, Circle 19(1), Delhi (hereinafter referred to as "Ld. AO") u/s 254 r.w.s. 143(1) of the Income Tax Act in case of the Appellant and making addition amounting to Rs. 1,33,47,818/- on account of late deposit of on account of late deposit of Bonus and employees contribution towards PF/ESI. 3. That on the facts and circumstances of the case and in law, original intimation order passed by Ld. AO u/s 143(1) of the Income Tax Act making an adjustment of Rs. 1,33,47,818/- dated 18.12.2021 in this case is bad in law, without jurisdiction, illegal and therefore the said intimation order is liable to be quashed. 4....
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....ble Supreme court (SC) in the case of Travancore Titanaium product ltd. 1966 AIR 1250. 10. That the Appellant denies liability towards interest charged u/s 234A, u/s 234B and u/s 234C and prays for appropriate relief." 3. As common issues are involved in all the three appeals. ITA No. 6600/Del/2025 for A.Y. 2018-19 is taken up as the lead case. 3.1 Brief facts are that the assessee company filed its return for A.Y. 2018-19 on 31.10.2018 declaring income of Rs. 1,35,79,360/-. The case was processed u/s 143(1) vide intimation order dated 23.10.2019 wherein addition of Rs. 2,55,73,010/- was made in respect of late deposit of employees contribution to PF/ESIC. Aggrieved the assessee filed an appeal before ld. CIT(A) which was party allowed vide order dated 31.10.2022 as under: S. No. Amount in Dispute before CIT (Appeals) Allowed by CIT(Appeals) Disallowed Reason 1 23815146 0 23815146 Late Deposit of PF/ESIC 2 1743407 1255524 487883 Payment of Bonus Further aggrieved, the assessee preferred an appeal before the ITAT only in respect of the issue relating to late deposit of PF/ESIC amounting to Rs. 2,388,15,146/- vide order d....
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....d with the provisions of the ESI ct, it is clear that the due date for deposit of the employee's contribution is to be calculated from the date on which salary was due to the employee not the date on which the salary was actually disbursed. Accordingly, addition of Rs. 2,38,15,146/- as made in the order u/s 143(1) is found to be correct and the same is added back to the total income of the assessee." [Addition of Rs. 2,38,15,146/-] 3.3 Aggrieved the assessee filed appeal before ld. CIT(A). Vide order dated 20.08.2025, ld. CIT(A) dismissed the assessee appeal. Further aggrieved, the assessee is in appeal before the Tribunal. 4. Before us, ld. AR has submitted that the lower authorities have mainly relied on the decision of the Hon'ble Apex Court in the case of Checkmate Services (P) Ltd. Vs. CIT (2022) 448 ITR 518 which is misplaced considering the facts of the case. He has argued that the impugned addition has been made u/s 143(1) when such an adjustment is clearly outside the scope of adjustments envisaged under the section. Further ld. AR has placed reliance on multiple decisions of the co-ordinate benches wherein on similar facts and circumstances disallowance made u/s ....