E Factor Adventure Tourism P. Ltd. Vs. Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee filed return of income for AY 2017-18 declaring NIL income. The case was selected for complete scrutiny under CASS. The assessment u/s 143(3) of the Act was completed accepting the return filed by assessee vide assessment order dated 25.12.2019. Thereafter, the Assessing Officer (AO) issued notice u/s.154 of the Act on 21.11.2023 to rectify alleged mistake, i.e., to disallow contribution of employee towards Provident Fund and ESI amounting to Rs. 4,46,928/- for alleged delay in deposit before the due date. The AO vide order dated 20.12.2023 passed u/s 154 of the Act, added back employees share of contribution of PF Rs.4,12,960/- and contribution of ESI Rs.73,968/- by placing reliance on the decision of Hon’ble Supreme Court of India in the case of Checkmate Services P. Ltd. vs. CIT (448 ITR 518). Aggrieved by the said order, the assessee filed appeal before the CIT(A) but remained unsuccessful. Hence, the present appeal.…

Legal Issues

• 1. Disallowance of the amounts of PF/ESI deposited by the assessee beyond due date specified under respective Acts.
• 2. Validity of proceedings u/s 153C of the Act in the absence of any incriminating material.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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