ITAT Deletes PF/ESI Disallowance as Issue Was Debatable at Time of Processing

Dondapati Sudhakara Rao Vs ITO (ITAT Hyderabad) The Income Tax Appellate Tribunal (ITAT), Hyderabad, considered an appeal against an order of the CIT(A) arising from an intimation issued under Section 143(1) for assessment year 2020–21. The assessee, engaged in providing security services, had filed a return declaring income of Rs. 11,11,250. The Centralized Processing Centre (CPC) disallowed a deduction of Rs. 36,63,930 relating to delayed deposit of employees’ contribution to Provident Fund (PF) and Employees’ State Insurance (ESI), resulting in assessed income of Rs. 50,83,778. The CI...