SMT. RAJ BALA,CHANDIGARH vs. DCIT/ACIT CIRCLE 1(1), CHANDIGARH, CHANDIGARH

ITA 1142/CHANDI/2024Status: DisposedITAT Chandigarh14 January 2026AY 2020-21Bench: SHRI. LALIET KUMAR (Judicial Member), SHRI. KRINWANT SAHAY (Accountant Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal observed that the exact dates of deposit and whether any portion was paid within statutory deadlines were not verified by the Assessing Officer or the CIT(A). Without expressing an opinion on the merits, the Tribunal restored the matter to the Assessing Officer for factual verification, directing them to re-examine the issue with documentary evidence and allow deductions for payments made within due dates.

What were the facts?

The assessee, engaged in manpower supply, filed her income tax return for AY 2020-21. While processing under section 143(1), the CPC disallowed Rs. 4,92,56,413/- related to employees' share of PF/ESI contributions, alleging deposits were made beyond statutory due dates. The CIT(A) upheld this disallowance, citing amendments by Finance Act, 2021 and the Supreme Court's decision in Checkmate Services Pvt. Ltd., which stated that such contributions are deductible only if deposited within prescribed due dates.

What were the issues?

Whether the disallowance of delayed employees' share of PF/ESI contributions under section 143(1) is valid, considering the retrospectivity of Finance Act, 2021 amendments, and whether such payments fall within the scope of processing under section 143(1) if made before the income tax return filing due date.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 36(1)(va),Section 2(24)(x),Section 43B,Section 139(1)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE "ी लिलत कुमार, "ाियक सद" एवं "ी कृणव" सहाय, लेखा सद" BEFORE: SHRI. LALIET KUMAR, JM & SHRI. KRINWANT SAHAY, AM आयकर अपील सं./ ITA No. 1142/Chd/ 2024 िनधा"रण वष" / Assessment Year : 2020-21 Smt. Raj Bala बनाम The DCIT/ACIT C/o Tejmohan Singh, Advocate Circle 1(1), Chandigarh # 527, Sector 10-D Chandigarh-160011 "ायी लेखा सं./PAN NO: AQJPB7952P अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Shri Tejmohan Singh, Advocate राज" की ओर से/ Revenue by : Smt. Geetinder Mann, CIT DR सुनवाई की तारीख/Date of Hearing : 12/01/2026 उदघोषणा की तारीख/Date of Pronouncement :14/01/2026

आदेश/Order PER KRINWANT SAHAY, A.M: This is an appeal filed by the Assessee against the order of the Ld. CIT, Appeal Addl/JCIT(A)-6, Chennai dt. 30/10/2024 pertaining to Assessment Year 2020-21. 2. In the present appeal Assessee has raised the following grounds:

1.

That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off.

2.

That the order of the Ld. Commissioner of Income Tax (Appeals). NF

The order continues below.

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