ITAT Agra Quashes EPF/ESI Disallowance as Section 143(1) Adjustment not allowed for Debatable Issues

Abhilakh Singh Sikarwar Vs ITO (ITAT Agra) The Agra Bench of the Income Tax Appellate Tribunal (ITAT), in Abhilakh Singh Sikarwar v. ITO, held that disallowance of employees’ contribution towards EPF and ESI under Section 36(1)(va) of the Income-tax Act could not be made while processing the return under Section 143(1), as the issue was highly debatable on the date the intimation was issued. Accordingly, the Tribunal quashed the disallowance and allowed the assessee’s appeal. The appeal arose from an order passed by the JCIT(A), which had upheld the adjustment made by the Centralis...