SANSPAREILS GREENLANDS PVT LTD.,MEERUT vs. ACIT CIRCLE, MEERUT

PER SATBEER SINGH GODARA, JM

This assessee’s appeal for assessment year 2022-23, arises against the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)-
10, Mumbai’s order dated 01.12.2023 having DIN and order no.
ITBA/APL/S/250/2023-24/1058410336(1), involving proceedings under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Assessee by Sh. P.S. Kashyap, FCA
Department by Sh. Rajesh Kumar Dhanesta, Sr. DR
Date of hearing
12.08.2025
Date of pronouncement
12.08.2025
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Heard both the parties. Case file perused.
2. It emerges at the outset that both the learned lower authorities have disallowed the assessee’s claim of ESI/EPF deduction representing employees’ contribution; in the CPC’s processing dated 16.03.2023 and upheld in the lower appellate discussion.
3. Faced with this situation, the Revenue vehemently argues that the instant issue is no more res-integra in light of hon’ble apex court’s landmark decision in Checkmate Services Pvt. Ltd. Vs. CIT
[2022] 143 taxmann.com 278(SC) to the effect that the corresponding due date has to be seen as per relevant statue than that of filing of section 139(1) return. The assessee’s case on the other hand quotes the case law Raj Kumar Bothra Vs. DCIT, (2025)
174 taxmann.com 1199 (Chhattisgarh) that no such disallowance could be made in section 143(1) processing since involving a highly debatable issue post-facto case law
Checkmate
Services hereinabove. That being the case, we hereby find merit in the assessee’s foregoing legal argument that no such disallowance could be made under section 143(1) “processing” since involving a 3 | P a g e highly debatable issue of ESI/PF disallowance in question. Ordered accordingly.
4. This assessee’s appeal is allowed.
Order pronounced in the open court on 12th August, 2025 (MANISH AGARWAL)
JUDICIAL MEMBER

Dated: 12th August, 2025. RK/-