S D ENGINEERSTECH PRIVATE LIMITED,FARIDABAD HARYANA V. DEPUTY COMMISSIONER OF INCOME CIRCLE 19 DELHI, DELHI

ITA 400/DEL/2025

AI Insights

The case involves multiple appeals by S.D. Engineertech Private Limited against the orders of the Learned Commissioner of Income Tax (Appeals)-26, Delhi, concerning the disallowance of PF and ESI contributions under section 36(1)(v) of the Income-tax Act, 1961, for the Assessment Years 2018-19, 2020-21, and 2021-22. The appeals also included a challenge against the levy of penalty under section 271AAC of the Act. The primary contention was the disallowance made by the Assessing Officer without proper verification of details, which the assessee argued should be reconsidered.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669511 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Other Referred Cases: Checkmate Services Pvt. Ltd. vs. CIT 143 taxmann.com 178
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: RAKESH GUPTA
• Keywords: Opportunity of being heard

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER and SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No.408/DEL/2025 (Assessment Year : 2018-19) ITA No.400/DEL/2025 (Assessment Year : 2020-21) ITA No.412/DEL/2025 (Assessment Year : 2021-22) ITA No.418/DEL/2025 (Assessment Year : 2021-22) S.D. Engineertech Private Limited, vs. DCIT, Central Circle 19, Plot No.177, Sector 24, Delhi. Faridabad – 121 005 (Haryana). (PAN : AAPCS1496Q) (APPELLANT) (RESPONDENT) ASSESSEE BY : Dr. Rakesh Gupta, Advocate Shri Somil Aggarwal, Advocate REVENUE BY : Shri Rajesh Kumar Dhanesta, Sr. DR Date of Hearing : 23.06.2025 Date of Order : 23.06.2025 O R D E R PER S.RIFAUR RAHMAN,ACCOUNTANT MEMBER : 1. These appeals are filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)-26, Delhi [“Ld. CIT (A)”, for short] dated 25.11.2024, 25.11.2024 & 26.11.2014 for Assessment Years 2 ITA Nos.400, 408, 412 & 418 /DEL/2025 2018-19, 2020-21 & 2021-22 and the assessee has also filed appeal against the order of ld. CIT (A) dated 27.11.2024 against levy of penalty under section 271AAC of the Income-tax Act, 1961 (for short ‘the Act’). 2. Since the issues are common and the appeals are connected, hence the same are heard together and are being disposed off by this common order. 3. At the time of hearing, it was brought to our notice by both the counsels appeared before us that assessee has filed these appeals before the ld. CIT (A)-26, New Delhi and raised several grounds of appeal. It was submitted that ld. CIT (A) has given several opportunities and issued several notices for conducting hearing, however none attended nor were any submissions furnished. Ld. CIT (A) proceeded to decide the issue on merit and observed that the issue under consideration is PF and ESI relating to employees’ contribution and the same was disallowed under section 36(1)(v) of the Income-tax Act, 1961 (for short ‘the Act’). It was submitted before us that no doubt, the issue under consideration is against the assessee based on the decision of Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. vs. CIT 143 taxmann.com 178, however, it was submitted that AO has made the disallowance without verifying the details. It was prayed that the issue may be remitted back to Assessing Officer to verify the disallowance after due verification of the respective 3 ITA Nos.400, 408, 412 & 418 /DEL/2025 Acts and it was also submitted that the disallowance was made on the basis of section 143(1) in AY 2018-19 & 2020-21. 4. Considered the rival submissions and material placed on record. Since the additions were made by the Assessing Officer on the basis of return of income filed by the assessee, we are inclined to remit these issues including penalty back to the file of ld. CIT (A) to verify the claim of the assessee after giving proper opportunity of being heard to the assessee. 5. In the result, all the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on this 23rd day of June, 2025 after the conclusion of the hearing. Sd/- sd/- (SATBEER SINGH GODARA) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 23.06.2025 TS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals). 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "