GLOBE GROUND INDIA PVT LTD,DELHI vs. ACIT, CIRCLE 10(1), DELHI

Since both the appeals are having common issues therefore, the same are taken together and decided by a common order. First we take the appeal for AY 2018-19 in ITA No. 2817/Del/2026.

Brief facts of the case that the assessee is providing passenger handling, baggage handling and cargo handling services to various domestic & International airlines at Indian Airport. Return of income was filed on 12.10.2018 declaring income of Rs. 1,72,02,590/- under the normal tax provisions after claiming deduction of Rs. 14,52,28,298/- under chapter VIA of the Act (including deduction u/s 80IA of Rs. 14,37,13,368/-) and Rs. 17,21,54,547/- as book profits u/s 115JB of the Act. While processing the return of income notice dated 23.03.2019 u/s 143(1)(a) was issued from CPC proposing the adjustment of Rs. 1,05,59,790/- towards employee contribution to PF and ESI being deposited beyond the dates specified in the respective Act. The assessee has not accepted the same as they were paid after the due date prescribed under respective Acts but before the due date of Filing the Income Tax return u/s 139 (1) of the Act. Thereafter order u/s 143(1) was passed on 05.11.2019 thereby making an addition of Rs. 1,05,59,790/- on account of delayed payment of employees contribution to PF and ESI. Further short credit of TDS of Rs. 61,43,133/- was allowed. Against such order, an application u/s 154 of the Act was filed on 11.05.2020 which was dismissed by the AO on 15.05.2023 confirming the disallowance of Rs. 1,05,59,790/- made u/s 36(1)(va) of the Act.

Against the said order, assessee preferred an appeal before the ld. CIT(A) who vide impugned order dt. 31.01.2026 dismissed the appeal of the assessee.

Aggrieved by the said order, assessee is in present appeal before the tribunal by taking various grounds of appeal which all are against the confirmation of the adjustment made u/s 143(1)(a) of the Act towards delayed payment of employees contributions towards PF & ESI.

During the course of hearing, the assessee has taken additional ground of appeal wherein which reads as under: "That on the facts and circumstances of the case and in law while making/upholding disallowance u/s 36(1) (va) of the Act the AO/CIT(A) have erred in not making /directing corresponding adjustment to profits of eligible business entitled for benefit of deduction u/s 801A of the Act. 7. In the aforesaid additional ground of appeal, it is claimed by the assessee that the disallowance u/s 36(1)(va) on account of delayed payments of employee’s contribution to PF and ESI has been made, however, the assesse is entitled for 100% deduction u/s 80IA of the Act on the profits computed under the head “Income from Business or Profession” and since the disallowance made by COC u/s 143(1)(a) is part of total income computed under the head Income from business or profession therefore the assessee is entitled for deduction u/s 80IA for such disallowance.

On the other hand, ld. Sr. DR submits that in terms of the order of hon’ble Supreme court in the case of Checkmate Services Pvt. Ltd. Vs. CIT reported in (2022) 448 ITR 518(SC) the disallowance made u/s 36(1)(va) of the Act deserves to be uphold. Regarding the claim made in additional ground of appeal, ld. Sr. DR stated that the same be decided as per law.

Heard both the parties and perused the materials available on record. Regarding the issue of disallowance made by the CPC u/s 143(1)(a) of the Act towards delayed payment of employee’s contribution to PF and ESI, same has already been settled by the Hon’ble Supreme Court in the case of M/s Checkmate Services Pvt. Ltd. vs. CIT-1 (Supra), therefore, the CPC has rightly disallowed the claim of the assessee.

In the result, appeals of the assessee is allowed for statistical purposes.

While deciding the appeal of the assessee for AY 2018-19 in ITA No.2816/Del/2026, under identical circumstances, we have already allowed the additional ground of appeal taken by the assessee and directed the AO to recompute the deduction u/s 80IA after considering the Income computed under the head Income from business or profession after including the disallowance made u/s 36(1)(va) of the Act. Before us, both the parties fairly agreed that the facts in the

In the result appeal of the assessee is allowed for statistical purposes.

In the final result both the appeals of the assessee in ITA Nos. 2816 &2817/Del/2026 are allowed for statistical purposes. Order pronounced in open Court on 13.07.2026.