Super Seals India Private Limited vs. ITO, Ward 24 (1)

Parties Involved

Facts Summary

Super Seals India Private Limited, a private limited company engaged in the manufacturing of Fuel Line Hoses, Oil Seals, and Hydrodynamic Seals, filed its income tax return for the Assessment Year 2017-18 on 27.10.2017. The case was selected for complete scrutiny, and a notice under section 143(2) was issued on 13.08.2018. The Assessing Officer (AO) raised a query regarding the delay in depositing Employees' State Insurance (ESI) and Provident Fund (PF) dues beyond the due dates prescribed under the respective Acts. The assessee submitted a written reply on 28/11/2019, stating that the dues were deposited within the financial year or before the due date of filing the income tax return. The AO was satisfied with the reply and allowed the claim for deduction of ESI and PF. However, in April 2022, the AO issued a notice under section 154 of the Income Tax Act, alleging that the Employees' share of ESI and PF had been deposited late, and added a sum of Rs. 54,07,029/- in the total income of the assessee. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)), which was dismissed. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT), Delhi.…

Legal Issues

• 1. Whether the order passed by the CIT(A) is bad both in the eye of law and on facts.
• 2. Whether the AO can review his earlier order under section 154 of the Act.
• 3. Whether debatable issues are outside the purview of Section 154 of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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