IMPERIAL LIFE SCIENCE PRIVATE LIMITED,DELHI vs. ASSISTANT COMMISSIONER, DELHI

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ITA 5275/DEL/2025Status: DisposedITAT Delhi27 May 2026AY 2018-195 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found that the Supreme Court in the Checkmate Services (P) Ltd. case had already adjudicated this issue in favour of the department. Therefore, the assessee's arguments against the disallowance were rejected.

What were the facts?

The assessee is aggrieved by a disallowance of Rs. 24,51,906/- under section 36(1)(va) for delayed ESI/PF contributions. The disallowance was made in section 143(1) processing and upheld by the CIT(A).

What were the issues?

Whether a disallowance for delayed ESI/PF contributions can be made under section 143(1) processing. Whether the Supreme Court's decision in Checkmate Services (P) Ltd. is applicable.

Which sections of the Income-tax Act were involved?

Section 36(1)(va),Section 143(1),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Appellant: Shri K.S. Bawa, CA
For Respondent: Ms. Ankush Kalra, Sr. DR
Hearing: 21.05.2026Pronounced: 21.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 5275/Del/2025 Assessment Year: 2018-19 Vs. Assistant Imperial Life Science Commissioner of Private Limited. Income Tax Flat No. 234, Somdutt Circle 10(1) Chamber-II 9 Bhikaji Cama Place, New Delhi- 66 PAN: AABCI5252Q (Appellant) (Respondent) Assessee by Shri K.S. Bawa, CA Department by Ms. Ankush Kalra, Sr. DR

Date of hearing 21.05.2026 Date of pronouncement 21.05.2026

ORDER PER SATBEER SINGH GODARA, JM

This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/Addl/JCIT(A)- 7 [in short, the “CIT(A)”], Mumbai’s DIN and order No. ITBA/APL/S/250/2025-26/1078197999(1) dated 04.07.2025 involving proceedings under section 154 of the Income-tax Act, 1961; hereinafter referred to as ‘the Act’. Heard both the parties. Case file perused.

ITA No.5275/Del/2025 2. Learned counsel states at the outset that the assessee/appellant herein is aggrieved against both the learned lower authorities’ respective section 143(1) r.w.s 154 rectification findings dated 30.01.2023 invoking section 36(1)(va) ESI/PF disallowance amounting to Rs. 24,51,906/- as upheld in the lower appellate discussion. That being the case, the assessee’s first and foremost contention is that such a disallowance could not have been made in section 143(1) processing which is found to be already adjudicated in the department’s favour in Woodland (Aero Club) Pvt. Ltd. vs Assistant Commissioner of Income Tax [2025] 178 taxmann.com 207 (Delhi).

3.

Learned counsel’s further submission is that hon’ble apex court in the very case in SLP (C) No. 1532/2026 admitted on 08.09.2026 has treated the instant issue of ESI/PF disallowance as involving conflicting views from various high courts; reading as under:

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4.

Faced with this situation, we find that for the reasons best known to the concerned assessee, it had not brought into light hon’ble apex court’s “larger” bench decision in Checkmate Services (P) Ltd. vs CIT 2022 448 ITR 518(SC) having already adjudicated the very issue in the department’s favour. We thus find merit in the Revenue’s vehement contentions herein to reject the assessee’s instant twin arguments against the impugned disallowance in very terms.

5.

This assessee’s appeal is dismissed.

Order pronounced in the open court on 21.05.2026 .

Sd/- Sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 27.05.2026 Pooja Mittal/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi 5 | P a g e

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