INSCRIBE GRAPHICS LTD,CHENNAI vs. DCIT, CORPORATE CIRCLE- 1(1), CHENNAI

During appellate proceedings, the assessee contended that the adjustment was beyond the scope of Sec. 143(1) since it was a debatable issue. It was also contended that PF was remitted within 15 days from the disbursement of salary as permitted under the act. The Ld. CIT(A), relying on the decision of Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. (143 Taxmann.com 178), confirmed the disallowance. The Ld. CIT(A) also held that this adjustment could be made while processing return of income u/s 143(1) as per various decisions of Tribunal. Aggrieved, the assessee is in further appeal before us.

The Ld. AR reiterated that this adjustment could not be made u/s 143(1). The Ld. AR also submitted that the ground that PF was remitted within 15 days from the disbursement of salary as permitted under the act, was not adjudicated by Ld. CIT(A). The Ld. Sr. DR opposed any interference in the impugned order.

We find that the issue on merits is squarely covered against the assessee by the cited decision of Hon’ble Supreme Court. This adjustment could also be made u/s 143(1) as per various decision of Tribunal including the decision of Chennai Tribunal in M/s Shree Gokulam Chit & Finance Co. Pvt. Ltd. (MA Nos. 97/Chny/2023 & ors. dated 31.07.2023). So far as the argument that PF was remitted within 15 days from the disbursement of salary as permitted under the act, is concerned, this aspect has not been dealt with by Ld. CIT(A). For the aforesaid limited purpose, we restore the matter back to the file of Ld. CIT(A) to deal with the same. The assessee is directed to substantiate the same.