Tinna Rubber And Infrastructure Limited Vs DCIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, adjudicated two appeals relating to assessment years 2022–23 and 2018–19 arising from proceedings under Sections 143(1) and 143(3) of the Income Tax Act. In the first appeal (ITA No. 816/Del/2025), the dispute concerned disallowance of Rs. 18,14,176 towards employees’ contribution to Provident Fund (PF) and Employees’ State Insurance (ESI) made during processing under Section 143(1) and upheld by the appellate authority. The Tribunal noted that the issue was covered by the decision of the Chhattisgarh High Court in Raj Kumar Bothra, which held that disallowance of delayed employee contributions could not be made through Section 143(1) when the issue was highly debatable at the relevant time. The Tribunal observed that, prior to the Supreme Court’s decision in Checkmate Services Pvt. Ltd., there existed divergent judicial views on the issue, making it unsuitable for summary adjustment. Following this reasoning, the Tribunal deleted the disallowance and allowed the appeal.
In the second appeal (ITA No. 817/Del/2025), the assessee sought to challenge disallowance arising from a different procedural context. The Tribunal noted that the assessee had already pursued appellate remedies against an assessment order under Section 143(3) and therefore permitted withdrawal of the present appeal with liberty to file a fresh appeal against the Section 143(1) processing. It further directed that any delay in filing such appeal would be deemed condoned. Accordingly, the first appeal was allowed, and the second appeal was dismissed as withdrawn.
