CES Limited Vs DCIT (ITAT Hyderabad)
The appeal was filed by the assessee against the order dated 07.03.2025 passed by the Addl./JCIT(A)-1, Kolkata, arising from an order of CPC under section 143(1) of the Income Tax Act, 1961 for assessment year 2018-19. The primary dispute concerned the disallowance of ₹79,83,715 towards Provident Fund (PF) and Employees’ State Insurance (ESI) contributions. The assessee contended that the payments were made before the due date for filing the return of income under section 139 and were therefore allowable under section 36(1)(va) read with section 43B of the Act. The assessee also argued that processing under section 143(1) was undertaken despite issuance of notice under section 143(2), and relied upon CBDT Instruction No.1/2015 regarding applicability of section 143(1D).
During the hearing, the assessee submitted that an identical issue had been considered in its appeal arising from an assessment order under section 143(3) for the same assessment year. In that earlier proceeding, the Tribunal, by order dated 21.06.2023, had remanded the matter, including the issue of PF/ESI/Gratuity disallowance, to the CIT(A) for fresh adjudication in accordance with the judgment of the Hon’ble Supreme Court in Checkmate Services Pvt. Ltd. vs. CIT (2022) 448 ITR 518 (SC). The Tribunal had also directed the CIT(A) to consider pending appeals, relevant material on record, provide opportunity to the assessee, and obtain a remand report from the Assessing Officer.
