TAURUS ENGLOBE PRIVATE LIMITED,DELHI vs. ITO WARD 25(1), DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI BEFORE SH. SATBEER SINGH GODARA, JUDICIAL MEMBER AND SH. NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 3474/Del/2026 (Assessment Year : 2017-18) Taurus Englobe Pvt. Ltd. Vs. ITO C-77, Mayapuri Industrial Ward – 25(1) Area New Delhi Phase-II, New Delhi PAN No. AACCT 5998 F (APPELLANT) (RESPONDENT) Assessee by -None- Revenue by Shri Balkishan Gopal, Sr. D.R. Date of hearing: 05.08.2026 Date of Pronouncement: 05.08.2026

ORDER PER NAVEEN CHANDRA, ACCOUNTANT MEMBER : This captioned appeal has been filed by the assessee against the order of the learned Commissioner of Income Tax (Appeals)- Addl/JCIT(A)-2, Visakhapatnam, (hereinafter referred as ‘CIT(A)’) order dated 15.01.2026 arising from the rectification order under section 154 of the Income Tax Act, 1961 (hereinafter, mentioned as ‘the Act’) dated 22.03.2024 passed by the ITO, Ward-25(1), Delhi

ITA No. 3474/DEL/2026 [A.Y 2017-18] Taurus Englobe Pvt. Ltd. vs. ITO (hereinafter referred as the ‘AO’) for the Assessment Year (A.Y.) 2017- 18 with no appearance by the assessee, the ld. DR heard at length and case records perused. 2. Grounds of appeal filed by the assessee are as under : 1. “That Hon'ble CITA has erred on circumstances and facts of the case and in law while affirming the addition of delayed payment of PF/ESI amounting to Rs. 2,77,723/- by rectification u/s 154 of the Act which is liable to be set aside. 2. That Hon'ble CITA has erred on circumstances and facts of the case and in law while concurring the addition of Rs.2,77,723/- on account of disallowance u/s 36(1)(va) of the Act, towards delayed payment of PF/ESI in the light of the decision of Hon'ble Apex Court in Checkmate Services (P) Limited whereas the assessment proceedings consist a specific enquiry. 3. That having regard to the facts and circumstance of the case, the Ld. CIT-A as well as Ld. A.O. is wholly incorrect and in disregard of the fact that there was a specific question on the subject addition during the assessment proceedings u/s 143(2) of the Act. 4. That the Appellant prays to allow the appeal in the interest of justice and the impugned order passed by the Ld. A.O. by making an addition of Rs.2,77,723/- may kindly be annulled and the returned loss amounting to Rs.2,31,923/- may kindly be accepted. 5. That the Appellant craves to leave to add, alter, amend, modify, substitute, delete any of the ground(s) of appeal at or before the time of the final hearing of the appeal, if necessary. 6. That the aforesaid grounds of appeal are without prejudice to each other.” 3. Brief facts of the case are that the assessee is a Private Limited Company and an export-oriented unit and carrying the business of manufacturing of welding machines, tools and accessories and its export from the unit at NOIDA SEZ. The assessee filed its return of income for A.Y. 2017-18 on 06.11.2017 declaring loss of Rs 2,31,923/-. The assessment proceedings were completed on 02.12.2019 without making any addition to the returned loss by the Ld. A.O. Thereafter,

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ITA No. 3474/DEL/2026 [A.Y 2017-18] Taurus Englobe Pvt. Ltd. vs. ITO the AO issued notice dated 05.02.2024 for rectification u/s 154 of the Act in respect of delayed payment of the PF & ESI on or before the due date specified under the respective Acts. The Ld. A.O. passed the order u/s 154 of the Act by making addition for the delayed payments in respect of employees contribution towards PF & ESI amounting to Rs.2,77,723/- u/s section 36(1)(va) of the Act, following the decision of the Apex Court in the case of M/s. Checkmate Services Pvt. Ltd. vs. CIT [2022] 143 taxmann.com 178 (SC). 4. The assessee, aggrieved with the order passed u/s 154 of the Act, was in appeal before the ld. CIT(A). The ld.CIT(A) has dismissed the appeal on 15.01.2026. Further, aggrieved the assessee is before us. 5. At the outset, learned Counsel for the assessee contested that the ld CIT(A) has erred on circumstances and facts of the case and in law while affirming the addition of delayed payment of PF/ESI amounting to Rs.2,77,723/- by rectification under section 154 of the Act which is liable to be set aside. 6. Per contra, the ld. DR relied upon the orders of Assessing Officer and the decision in the case of Checkmate Services [supra] rendered by the Hon'ble Supreme Court. 7. We have heard the rival submissions and perused the material available on record. We are of the considered opinion that the

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ITA No. 3474/DEL/2026 [A.Y 2017-18] Taurus Englobe Pvt. Ltd. vs. ITO disallowance made 36(1)(va) on account of delayed payment of PF/ESI in the proceedings u/s 154 of the Act is valid in light of the decision of Checkmate Services [supra] and the hon’ble Delhi High Court in the case of Woodland (Aero Club) Private Limited vs ACIT [2025] 178 taxmann.com 207 (Delhi)[08-09-2025] wherein relying on the decision of Checkmate Services P. Ltd. vs. CIT, the hon’ble Delhi High Court held that disallowance u/s 36(1)(va) for employee's contribution to ESI/PF that was deposited by assessee-employer after due date prescribed in PF/ESCI Acts but before due date of filing return under section 139(1), is valid. The hon’ble Delhi High Court also held that such disallowance can be made under section 143(1) of the Act. The grounds are disposed in aforesaid terms. 8. In the result, the appeal of the assessee in ITA No. 3474/Del/2026 is allowed for statistical purposes.

Order pronounced in the open court on 05.08.2026

Sd/- Sd/ (SATBEER SINGH GODARA) (NAVEEN CHANDRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Date:- 13.08.2026 Priti Yadav, Sr. Ps*

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ITA No. 3474/DEL/2026 [A.Y 2017-18] Taurus Englobe Pvt. Ltd. vs. ITO Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI

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