Section 143(1) PF/ESI Disallowance Invalid Before SC’s Checkmate Ruling Due to Debatable Legal Position

Hisar Metal Industries Ltd. Vs DCIT (ITAT Delhi)  Debatable PF/ESI disallowance cannot be adjusted under Section 143(1) prior to Supreme Court’s Checkmate ruling dated 12.10.2022 The assessee faced disallowance of employees’ PF and ESI contributions u/s 36(1)(va) during processing of returns under Section 143(1). Though payments were made beyond statutory due dates, they were deposited before the due date of filing the return. The Tribunal noted that, at the time of intimation, the issue was highly debatable with divergent High Court views. Since the Supreme Court’s ruling in Checkmate ...