ITAT Chandigarh Judgments — January 2022

The Tribunal held that if ESI/PF dues are paid after the due date under the respective statutes but before filing the Income Tax Return, they cannot be disallowed under Section 43B read with Section 36(1)(va) of the Act.

The Tribunal held that the CIT(A) had not adjudicated the issue raised by the assessee regarding the Section 154 order. Therefore, the matter was set aside to the CIT(A) for fresh adjudication.

The Tribunal held that the non-filing of Form 10 within the stipulated period is an irregularity, not an illegality. If the defect is cured during assessment proceedings, the assessee is entitled to the benefit of accumulation.

The Tribunal admitted the additional evidence and, considering the submissions and the nature of the documents, decided to restore the matter to the file of the Assessing Officer for fresh verification. The Revenue did not object to the admission of additional evidence but requested a remand for verification.

The Tribunal condoned the delay, finding it to be beyond the assessee's control. The appeal was allowed for statistical purposes, remanding the matter back to the CIT(A) to ensure proper adjudication.

The Tribunal deleted the addition of Rs. 75,867/- by following previous coordinate bench decisions on the issue of employee PF/ESI contributions paid before the return filing date. The addition of Rs. 16,000/- was set aside to the AO for fresh adjudication.

The Tribunal held that the CIT(E)'s rejection of the fresh application solely on the ground that a prior appeal was not filed was incorrect. The Tribunal found that the assessee had started construction activities, as evidenced by the balance sheet, but further verification was needed.

The Tribunal held that the penalty was not sustainable because the addition related to a Section 14A disallowance, which was subsequently deleted by the ITAT in quantum proceedings. The AO had also given effect to this deletion.