DCIT Vs UJVN Limited (ITAT Dehradun)
Both appeals—one by Revenue for AY 2017-18 & the other by Assessee for AY 2024-25—arise from orders of CIT(A) dated 28.05.2025. For AY 2017-18, the sole issue was Revenue’s challenge to depreciation allowed on assets received by UJVN Ltd. on split-up from UP Jal Vidyut Nigam Ltd. Revenue itself admitted that the earlier order of Tribunal (allowing depreciation in AY 2014-15) stands challenged before Uttarakhand High Court & not attained finality. Tribunal noted that in AYs 2018-19, 2021-22 & 2022-23 also it had consistently allowed depreciation following its own earlier ruling. CIT(A) had merely followed these binding precedents. Finding identical facts, Tribunal dismissed Revenue’s appeal & upheld Assessee’s eligibility to depreciation arising on demerger.
For AY 2024-25, Assessee declared loss of Rs.121.52 crores which CPC processed u/s 143(1) & made disallowance of Rs.1.09 crores towards delayed employees’ PF & ESI contribution u/s 36(1)(va). CIT(A), relying on Checkmate Services Pvt. Ltd. (SC), upheld the disallowance. Before Tribunal, Assessee accepted the binding nature of Checkmate but argued that the “due date” under PF/ESI laws must be computed from the actual date of salary payment. Tribunal accepted this legal proposition relying on its decision in M.S. Vigilant Security Placement & Detective Services (P) Ltd. & the Kolkata Bench ruling in Kanoi Papers & Industries Ltd., holding that for calculating permissible time-limit, the month of actual salary disbursement must be taken. Tribunal directed AO to verify actual salary payment dates & recompute the allowability accordingly. Issues relating to tax credit adjustments were also restored for verification. Assessee’s appeal was thus partly allowed for statistical purposes.
