IPF Vikram India Private Limited Vs DCIT (ITAT Chandigarh)
Audit Objection–Based Reopening & PF Issue Sent Back: ITAT Chandigarh Orders De Novo Assessment
Reopening Upheld on Audit Info, Yet Entire Issue Remanded for Fresh Examination
The Chandigarh Bench “A” of the ITAT, vide order dated 30.12.2025 in IPF Vikram India Private Limited v. DCIT, (ITA No.1204/Chd/2024, AY 2014-15), condoned a delay of 42 days in filing the appeal and set aside the orders of the lower authorities, restoring the matter to the Assessing Officer for de novo adjudication.
The assessee’s original assessment for AY 2014-15 had been completed u/s 143(3) on 29.09.2016. Subsequently, based on audit information, the AO reopened the assessment u/s 147 alleging escapement of income of ₹18,63,488 on account of employees’ contribution to PF/ESI, which according to the AO was not added back while computing income. In reassessment proceedings, despite detailed replies and challans furnished by the assessee, the AO made disallowance u/s 36(1)(va) and initiated penalty proceedings.
Before the CIT(A), the assessee challenged both the validity of reopening and the merits of disallowance. While the CIT(A) upheld the reopening—erroneously observing that no regular assessment had been framed—he relied on the Supreme Court decision in Checkmate Services Pvt. Ltd. and directed the AO to verify statutory due dates and allow deduction wherever payments were made within such due dates.
The Tribunal noted that the CIT(A) proceeded on an incorrect factual premise, ignoring that a regular assessment u/s 143(3) had indeed been completed earlier. Further, even on merits, the issue of employees’ contribution to PF/ESI required proper factual verification of due dates and actual dates of payment, which remained inconclusive. Since both reopening and merits were intertwined with factual errors and incomplete examination, the Tribunal held that interests of justice required a fresh look.
Accordingly, the ITAT set aside the impugned order and restored the entire matter to the file of the AO for fresh adjudication in accordance with law after granting due opportunity to the assessee. The appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
