ICDS Adjustment Beyond CPC Powers BUT PF/ESI Disallowance Valid in 143(1): Delhi ITAT

Ganganagar Vehicles Pvt Ltd Vs ITO (ITAT Delhi)

Both appeals involved two common adjustments made by CPC u/s 143(1):

• Late deposit of employees’ PF/ESI contribution u/s 36(1)(va)
• Adjustment relating to depreciation (ICDS impact)

Late PF/ESI contribution – Whether CPC can disallow u/s 143(1)?

Assessee argued that when the return was processed, the law on PF/ESI was debatable and CPC had no power to make such an adjustment. However, Tribunal held that the Supreme Court in Checkmate Services (P) Ltd. 448 ITR 518 has finally settled

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