Tumlare Software Services Pvt. Ltd. Vs ACIT (ITAT Delhi)
CIT(A)’s Order Sustaining Key Disallowances & Limiting Relief After Verification Upheld in Full- ITAT Delhi Dismisses Appeal
The assessee challenged multiple additions/disallowances sustained by CIT(A) for AY 2018-19, despite receiving substantial relief at appellate stage. Six issues survived for adjudication before ITAT—returned income mismatch, gratuity disallowance u/s 40A(7), PF delay u/s 36(1)(va), TDS disallowance u/s 195, interest for TCS default, & balance inadmissible expenses.
1. Returned Income vs 143(1) Income
Assessee argued that AO wrongly took the 143(1) processed income (₹2.15 crore) instead of the income shown during scrutiny (₹1.54 crore). CIT(A) verified the computation history & allowed consequential relief wherever justified. ITAT found no error, holding that CIT(A)’s verification was proper & assessee brought no contrary evidence.
2. Gratuity Disallowance – ₹7,75,456 (40A(7))
Assessee claimed this was already disallowed in revised computation. ITAT upheld CIT(A)’s view that only admitted disallowances appearing in 143(1) could be adjusted; assessee failed to demonstrate any factual mistake. Disallowance sustained.
3. PF Employees’ Contribution – ₹18,59,443 (36(1)(va))
In light of Supreme Court ruling in Checkmate Services, delayed employees’ PF contribution is not allowable even if paid before filing ROI. CIT(A) had remanded matter only for verification. ITAT confirmed the action, as assessee had no rebuttal.
