AI Structured Summary
Not yet generated for this judgment
Judgment
PER VIMAL KUMAR, JM:
The appeal filed by the assessee is against the order dated 14.01.2026 of the Ld. Additional / Joint Commissioner of Income Tax (Appeals)-5, Chennai [hereinafter referred to as “the A/JCIT(A)”] u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) arising out of assessment order dated 29.03.2019 u/s 154 of the Act for A.Y. 2017-18.
Ld. Authorized Representative for appellant/assessee submitted that Ld. CIT(A) erred in confirming disallowance of Rs. 14,65,005/- (Empoyer’s share Rs. 7,28,201/- and Employee’s share Rs. 5,90,338/-) on account of employers contribution for ESI & PF under section 53B of the Act. Ld. CIT(A) confirmed order u/s 143(1) of the Act dated 29.03.2019. Ld. CIT(A) had followed judgment in case of Checkmate Services P. ltd. Vs. Commissioner of Income-tax, Civil Appeal No. 2833 of 2016 dated 12.10.2022 ignoring that the issue under consideration was debatable and majority of the decisions were in favour of the assessee. Reliance was placed on ITA No. 2576/Del/2022, AY 2017-18 dated 24.06.2026.
Ld. Departmental Representative relied on impugned orders.
From examination of record in light of aforesaid rival contentions, it is crystal clear that Ld. AO passed order u/s 143(1) of the Act on 29.03.2019. Ld. CIT(A) vide order dated 14.01.2026 confirmed the order of ld. AO by following decision of Hon’ble Supreme Court in Checkmate Services P. ltd. Vs. Commissioner of Income-tax (supra) decided on 12.10.2022.
A co-ordinate Bench in ITA No. 2576/Del/2022 in para No. 5 observed as under:
“5.Considered the rival submissions and material placed on record. We observed that the first plea of the assessee that the issue under consideration is beyond the scope of section 143(1)(a) of the Income-tax Act, 1961 (for short ‘the Act’). We observed that the present order u/s 143(1) was passed on 19.03.2019. The decision of Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. (supra) was delivered on 12.10.2022. On the date of order passed u/s 143(1), the issue under consideration was debatable and majority of the decisions were in favour of the assessee. Invoking the decision of Hon’bel Supreme Court in the present case is beyond jurisdiction. Therefore, we are inclined to dismiss the grounds raised by the Revenue.”
In view of above, it is material fact and by following the judicial precedents, it is held that the impugned orders dated 14.01.2026 of Ld. CIT(A) u/s 250 of the Act and Assessment order dated 29.03.2019 of Ld. AO u/s 143(1) of the Act being illegal are set aside.
In the result, the appeal filed by the assessee is allowed.