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		<title>Extension of the Punjab Prevention of Human Smuggling Act, 2012 and 2014.</title>
		<link>https://www.taxheal.com/extension-of-the-punjab-prevention-of-human-smuggling-act-2012-and-2014.html</link>
		
		<dc:creator><![CDATA[CA Satbir Singh]]></dc:creator>
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					<description><![CDATA[<p>Extension of the Punjab Prevention of Human Smuggling Act, 2012 and 2014. The Gazette of India CG-DL-E-07052026-272302 EXTRAORDINARY PUBLISHED BY AUTHORITY No. 2171] NEW DELHI, WEDNESDAY, MAY 6, 2026/VAISAKHA 16, 1948 MINISTRY OF HOME AFFAIRS NOTIFICATION New Delhi, the 6th May, 2026 S.O. 2261(E).— In exercise of the powers conferred by section 87 of the… <span class="read-more"><a href="https://www.taxheal.com/extension-of-the-punjab-prevention-of-human-smuggling-act-2012-and-2014.html">Read More &#187;</a></span></p>
]]></description>
										<content:encoded><![CDATA[<h3 style="text-align: center;">Extension of the Punjab Prevention of Human Smuggling Act, 2012 and 2014.</h3>
<h2 style="text-align: center;">The Gazette of India</h2>
<p style="text-align: center;"><strong>CG-DL-E-07052026-272302</strong></p>
<p style="text-align: center;"><strong>EXTRAORDINARY</strong></p>
<p style="text-align: center;"><strong>PUBLISHED BY AUTHORITY</strong></p>
<p><strong>No. 2171] </strong></p>
<p style="text-align: center;"><strong>NEW DELHI, WEDNESDAY, MAY 6, 2026/VAISAKHA 16, 1948</strong></p>
<p style="text-align: center;">MINISTRY OF HOME AFFAIRS<br />
NOTIFICATION<br />
New Delhi, the 6th May, 2026</p>
<p>S.O. 2261(E).— In exercise of the powers conferred by section 87 of the Punjab Reorganisation Act, 1966 (31<br />
of 1966), the Central Government hereby extends the Punjab Prevention of Human Smuggling Act, 2012 (Punjab Act<br />
No. 2 of 2013) (hereinafter referred to as the principal Act) to the Union territory of Chandigarh from the date of<br />
publication of this notification in the Official Gazette, subject to the following modifications, namely:—</p>
<p>1. This Act may be called the Punjab Prevention of Human Smuggling Act, 2012 (Extension to Chandigarh).</p>
<p>2. In the principal Act, save as otherwise expressly provided hereunder:—</p>
<p>(a) for the words &#8220;State&#8221;, &#8220;Punjab&#8221;, &#8220;State of Punjab&#8221;, wherever they occur, the words &#8220;Union territory of<br />
Chandigarh&#8221; shall be substituted;</p>
<p>(b) for the words “State Government”, “Government”, “Government of Punjab in the Department of Home<br />
Affairs and Justice”, wherever they occur, the words “Administrator” shall be substituted;</p>
<p>3. In the principal Act, in section 1, in sub-section (2), for the words “State Government”, the word “Administrator”<br />
shall be substituted.</p>
<p>4. In the principal Act, in section 2,—</p>
<p>(a) clause (a) shall be renumbered as clause (aa) thereof and before the clause so renumbered, the<br />
following clause shall be inserted, namely:—</p>
<p>‘(a) “Administrator” means the Administrator of the Union territory of Chandigarh appointed by the<br />
President under article 239 of the Constitution;</p>
<p>(b) in clause (aa) as so renumbered, for the words and figures “section 415 and includes cheating by<br />
personation as specified in section 416 of the Indian Penal Code, 1860”, (Central Act 45 of 1860)”<br />
the words and figures “section 318 and includes cheating by personation as specified in section 319<br />
of the Bharatiya Nyaya Sanhita, 2023” 45 of 2023” shall be substituted.</p>
<p>5. In the principal Act, in section 18, for sub-section (3), the following sub-section shall be substituted, namely:—</p>
<p>“(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of<br />
Parliament, while it is in session, for a total period of thirty days, which may be comprised in one session<br />
or in two or more successive sessions, and, if, before the expiry of the session immediately following the<br />
session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or<br />
both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such<br />
modified form or be of no effect, as the case may be; so, however, that any such modification or annulment<br />
shall be without prejudice to the validity of anything previously done or omitted to be done under that<br />
rule.”.</p>
<p>6. In the principal Act, in section 22, in sub-section (2), for the words “Legislative Assembly”, the word “Parliament”</p>
<p style="text-align: right;">shall be substituted.<br />
[F.No.U-11015/2/2025-UTL]<br />
PRAVEEN KUMAR RAI, Jt. Secy</p>
<p style="text-align: center;"><strong>PART-I</strong><br />
<strong>DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS,</strong><br />
<strong>PUNJAB</strong><br />
<strong>NOTIFICAITON</strong><br />
<strong>The 4th January, 2013</strong></p>
<p>No. 2-Leg./2013.- The following Act of the Legislature of the State of Punjab received the assent of the Governor of<br />
Punjab on the 4th January, 2013, is hereby published for general information:-</p>
<p style="text-align: center;"><strong>THE PUNJAB PREVENTION OF HUMAN SMUGGLLNG ACT, 2012</strong><br />
<strong>(Punjab Act No. 2 of 2013)</strong><br />
<strong>AN</strong><br />
<strong>ACT</strong></p>
<p>to provide for the regulation of the profession of travel agents with a view to check and curb their illegal and fraudulent<br />
activities, and malpractices of the person involved in the organized human smuggling in the State of Punjab and for the<br />
matters connected therewith or incidental thereto.</p>
<p>BE it enacted by the Legislature of the State of Punjab in the Sixty-third Year of the Republic of India as follows:-</p>
<p>1. (1) This Act may be called the Punjab Prevention of Human Smuggling<br />
Act, 2012.</p>
<p>(2) It shall come into force on such date, as the State Government may,<br />
by notification in the Official Gazette, appoint.</p>
<p>Short title and<br />
commencement.</p>
<p>2. In this Act, unless context otherwise requires,- Definitions.</p>
<p>(a) “cheating” shall have the same meaning as assigned to it in section<br />
415 and includes cheating by personation as specified in section<br />
416 of the Indian penal Code, 1860 (Central Act 45 of 1860);</p>
<p>(b) “competent authority” means an officer appointed by the State<br />
Government, by notification, to be the competent authority for the<br />
purpose of this Act;</p>
<p>(c) “dependent” means any person, who is related to an emigrant and<br />
is also dependent on that emigrant;</p>
<p>(d) “device” means any machinery or instrument that may be used or<br />
intended to be used for the purpose of forging or counterfeiting any<br />
document, passport, visa, entry permit or travel ticket;</p>
<p>(e) “document” means any matter expressed or described upon any<br />
substance by means of letters, figures or marks or by more than one<br />
of these means, intended to be used or which my be used, as<br />
evidence of that matter;</p>
<p>(f) “emigrant” means any citizen of India, who intends to emigrate or<br />
emigrates or has emigrated, but does not include,-</p>
<p>(i) a dependent of an emigrant, whether such dependent<br />
accompanies that emigrant, or departs subsequently for<br />
the purpose of joining that emigrant in the country to<br />
which that emigrant has lawfully emigrated; and</p>
<p>(ii) any person, who has resided outside India for a minimum<br />
period of three years after attaining the age of eighteen<br />
years or his spouse or child;</p>
<p>(g) “human smuggling” shall means and include illegally exporting,<br />
sending or transporting persons out of India or any type of<br />
facilitation thereto by receiving money from them or their parents,<br />
relatives or any other person interested in their welfare, by<br />
inducing, alluring or deceiving or cheating;</p>
<p>(h) “illegally” acquired property” means any property whether<br />
movable or immovable, acquired by illegal means by a travel agent<br />
in contravention of the provisions of this Act;</p>
<p>(i) “license” means a license issued by the competent authority under<br />
sub-section (2) of section 4 of this Act;</p>
<p>(j) “Licensees” means a person to whom a license is granted under this<br />
Act;</p>
<p>(k) “prescribed” means prescribed by rules made under this Act;</p>
<p>(l) “State Government” means the Government of the State of Punjab<br />
in the Department of Home Affairs and Justice; and</p>
<p>(m) “travel agent” means a person doing the profession which involves<br />
arranging, managing, or conducting affairs relating to sending</p>
<p>persons aboard or which arise out of the affairs of persons sent to a<br />
foreign country, except for carrying out the business of recruitment<br />
being governed under the Emigration Act, 1983 (Central Act 31 of<br />
1983), and shall include all or any of the following, namely:-</p>
<p>(a) Processing of applications for or relating to grant of passport or<br />
visa; or</p>
<p>(b) acting as an agent for a company, firm or such type of bodies or<br />
entities for-</p>
<p>(i) selling air travel tickets; and</p>
<p>(ii) providing means of transportation for travel to a foreign<br />
country by land or sea; or</p>
<p>(c) Providing consultancy visa service or guidance to the persons<br />
intending to go abroad for-</p>
<p>(i) acquiring education;<br />
(ii) undertaking a pleasure trip as a tourist or traveler;<br />
(iii) getting medical treatment;<br />
(iv) arranging cultural entertainment or musical shows;<br />
(v) spreading or preaching religion; or<br />
(vi) participating in sports tournaments or events; or<br />
(d) giving an advertisement or publicity, which relates directly or<br />
indirectly to any field of travel to a foreign country by means of<br />
publication, transmission, communication or internet; or<br />
(e) Holding or seminars or delivering of lectures to promote<br />
emigration or rendering assistance for such purposes; or<br />
(f) arranging matrimonial alliances and adoptions for the purposes of<br />
emigration; or<br />
(g) arranging travel of any person from India to abroad for any<br />
purpose whatsoever; or<br />
(h) acting as freelancing type tout for any of the purposes mentioned<br />
in clauses (a) to (g).</p>
<p>Regulation of<br />
profession of a<br />
travel agent.</p>
<p>3. No person shall undertake the profession of a travel agent unless he<br />
obtains a license under and in accordance with the provisions of section 4<br />
of this Act.</p>
<p>4. (1) A person, desiring to undertake the profession of a travel agent or who<br />
is already in this profession on the commencement of this Act, shall make<br />
an application to the competent authority in such manner alongwith such fee<br />
and containing such documents as may be prescribed.</p>
<p>(2) If the competent authority is satisfied that the application made under<br />
sub-section (1) is in order, it shall issue a license under such terms and<br />
conditions and in such form as may be prescribed:</p>
<p>Provided that if the competent authority is satisfied that the particulars<br />
given in the application are incorrect or are incomplete or that any evidence<br />
or information required for issuing the license is not furnished, it may, after<br />
necessary inquiry and after giving the applicant an opportunity of being<br />
heard, reject the application for the reasons, to be recorded in writing:<br />
Provided further that the person, whose application has been rejected for<br />
grant of license, may make another application to the competent authority<br />
for grant of license after removing the defects pointed out by it.</p>
<p>(3) No license shall be issued to a person under sub-section (2), unless the<br />
particulars and documents given by him, in his application, are verified by<br />
the police.</p>
<p>(4) The validity of a license shall be for a period of five years, which shall<br />
be renewable for the said period in such manner, as may be prescribed</p>
<p>Endorsement of<br />
branches or<br />
offices.</p>
<p>5. If a person, who has obtained a license under this Act for doing the<br />
profession of a travel agent at one a place in a district, subsequently opens<br />
other branch or office at a place situated in another district, he shall not be<br />
required to obtain a fresh license for such other branch or office. However,<br />
he shall immediately inform, in writing, to the competent authority and to<br />
the District Magistrate of the district concerned, where a new branch or<br />
office has been opened and shall obtain an acknowledgement for giving such<br />
an information.</p>
<p>6. (1) The competent authority may, on an application made to it by any<br />
person or otherwise on information that licensee has,-</p>
<p>Cancellation or<br />
suspension of<br />
license</p>
<p>(a) become insolvent or bankrupt; or<br />
(b) indulged or abetted, directly or indirectly into any act, which is<br />
prejudicial to the interest of India or to its security; or<br />
(c) been convicted by a court for any criminal offence; or<br />
(d) obtained or got renewed the license on misrepresentation or<br />
suppression of any material fact; or<br />
(e) violated any of the terms and conditions of the license; or<br />
(f) allowed any other person to do the profession of travel agent from<br />
his premises or under his name; or<br />
(g) failed to do the profession of travel agent for a continuous period of<br />
three months, cancel the license:</p>
<p>Provided that before cancellation of license a show cause notice to the<br />
licensee to explain his position within seven days from the receipt of notice<br />
as to why his license should not be cancelled shall be issued.<br />
Explanation.- For the purpose of clause (f), the expression ‘premises’<br />
shall mean any building, tent, vessel, land structure, shop, booth, vehicle,<br />
boat or raft, used as human dwelling or for any other activity by a human<br />
being.</p>
<p>(2) If the license is cancelled for the reason mentioned in clause (c) of subsection (1) and the conviction is set aside by the appellate court, the<br />
competent authority may restore the license to the licensee suo-moto or on<br />
an application made in this regard.</p>
<p>(3) Where the competent authority, for the reasons to be recorded, in writing,<br />
is satisfied that the question of cancellation of any license on any of the<br />
grounds mentioned in sub-section (1), is pending with it for consideration,<br />
it may be an order, in writing, suspend the operation of the license for such<br />
period not exceeding ninety days, as may be specified in the order. The<br />
licensee shall be required to show cause within a period of fifteen days from<br />
the date of receipt of such order as to why the period of suspension of license<br />
may not be extended till the question of cancellation of license is decided<br />
by the competent authority.</p>
<p>(4) Before passing an order of cancellation or suspension of a license, the<br />
competent authority shall consider the matter keeping in view the interests<br />
of the emigrants and may pass such order, as it may deem appropriate.<br />
(5) Except as otherwise provided under this Act, where a license issued to<br />
any person has been cancelled, such person shall be debarred from<br />
undertaking the profession of a travel agent.</p>
<p>Travel agent to<br />
inform the<br />
competent<br />
authority.</p>
<p>7. If any travel agent wants to give advertisement or publicity with regard<br />
to his profession or to hold seminar in respect thereof, he shall have to<br />
inform the competent authority, in writing, by giving complete details or<br />
contents thereof.</p>
<p>Surrendering of<br />
license.</p>
<p>8. (1) A travel agent may surrender his license at any time after its issuance<br />
by giving two months’ notice to the competent authority and on the expiry<br />
of the notice period, the license shall be deemed to have been cancelled.</p>
<p>(2) The fact of cancellation of license under sub-section (2) shall be<br />
published by the competent authority in two daily newspapers having wide<br />
circulation in the locality concerned.</p>
<p>(3) On the cancellation of license, the travel agent shall not be entitled to<br />
refund of fee deposited by him at the time of submitting his application for<br />
obtaining license.</p>
<p>(4) Notwithstanding the cancellation of license under this section, the travel<br />
agent shall be liable for his acts, omission and commissions prior to the date<br />
of cancellation of the license and he shall be proceeded against as per the<br />
provisions of this Act.</p>
<p>Appeal against<br />
order of the<br />
competent<br />
authority.</p>
<p>9. Any person, aggrieved by an order passed by the competent authority<br />
rejecting application for grant of license or to comply with any term or<br />
condition of the license or suspending or cancelling or refusing to renew the<br />
license or any other order, may prefer an appeal against such order to the<br />
Principal Secretary to Government of Punjab, Department of Home Affairs<br />
and Justice, within such period, as may be prescribed.</p>
<p>10. If any Executive Magistrate not below the rank of Sub-Divisional<br />
Magistrate or Gazetted police officer not below the rank of Deputy<br />
Superintendent of Police or any other officer authorized in this behalf by a<br />
special order by the State Government has reason to believe from his<br />
personal knowledge or upon information given to him by any person and<br />
taken down, in writing, that any document in respect of which an offence<br />
punishable under this Act has been committed or any document or other<br />
article, which may furnish evidence of commission of such offence, is kept<br />
or concealed in any building, conveyance or place, he may, at any timePower to search<br />
seizure of</p>
<p>conveyance,<br />
place and arrest<br />
of persons.</p>
<p>(a) enter into and search any such building, conveyance or place;</p>
<p>(b) Break open any door or window of any house and remove any obstacle<br />
to such entry in case of any resistance;</p>
<p>(c) seize any document or substance or material used for fabrication of<br />
any document which he has reason to believe to be liable to<br />
confiscation under this Act and any other document or article which<br />
he has reason to believe that it may furnish evidence of the<br />
commission of any offence punishable under this Act; and</p>
<p>(d) detain and search, and if he thinks proper, arrest any person whom he<br />
has reason to believe to have committed any offence punishable under<br />
this Act.</p>
<p>11. A Police officer, not below the rank of a Deputy Superintendent of<br />
Police, shall conduct investigation, which shall be completed by him within<br />
a period of two months from the date of information given to him by any<br />
person. The police officer of the rank of Superintendent of Police shall<br />
verify the investigation conducted by the investigation officer. An officer,<br />
not below the rank of Senior Superintendent of Police shall act as Nodal<br />
officer for all the investigations to be made under this Act.</p>
<p>Power of<br />
investigation.</p>
<p>12. In the trial of offences under this Act, the court shall decide that any<br />
illegally acquired property, whether moveable or immoveable, is liable to<br />
be confiscated or not and if it decides that the property is so liable, it may<br />
order confiscation of that property in the prescribed manner.</p>
<p>Procedure in<br />
making<br />
confiscation.</p>
<p>Penalties.</p>
<p>13. (1) Whoever, contravenes the provisions of this Act or keeps or uses the<br />
device for human smuggling, shall be punished with imprisonment for a<br />
period not less than three years, which may extend to seven years and with<br />
fine which may extend to five lakh rupees.</p>
<p>(2) Whoever attempts to commit any offence punishable under this Act or<br />
cause such offence to be committed and in such attempt, does any act<br />
towards the commission of the offence, shall be liable to punishment<br />
specified for the commission of the offence under this Act.</p>
<p>(3) Whoever abets or is a party to a criminal conspiracy to commit any<br />
offence punishable under this Act, shall, if that offence be not committed in<br />
consequence of such abetment or criminal conspiracy, be punished with<br />
punishment for a term, which may extend to one fourth part of the longest<br />
term and with fine provided for such offence under this Act.</p>
<p>(4) Whoever, having been convicted of an offence under any provision of<br />
this Act, is again convicted of an offence under the same provision, shall be<br />
punishable, for the second, and for each subsequent offence, with double the<br />
penalty, provided for the offence.<br />
Awarding of<br />
compensation.<br />
14. In addition to imposing any penalty, as provided in section 13, the court<br />
may also award a reasonable amount of compensation to the aggrieved<br />
person to be paid by the travel agent.</p>
<p>&nbsp;</p>
<p>Offences by<br />
companies.</p>
<p>15 (1) If the person committing any offence punishable under this Act is a<br />
Company, every person, who at time of commission of the offence, was incharge of, and responsible to the Company for the conduct of its business,<br />
as well as the Company, shall be deemed to be guilty of the offence and<br />
shall be liable to be proceeded against and punished accordingly:<br />
Provided that nothing contained in this sub-section shall render any such<br />
person liable to any punishment provided in this Act, if he proves that the<br />
offence was committed without his knowledge or that he exercised all due<br />
diligence to prevent the commission of the offence.</p>
<p>(2) Notwithstanding anything contained in sub-section (1), where an offence<br />
under this Act, has been committed by a Company and it is proved that the<br />
offence has been committed with the consent or connivance of, or is<br />
attributable to any negligence on the part of any Director, Manager,<br />
Secretary any other officer of the Company, such Director, Manager,<br />
Secretary or other officer, shall also be deemed to be guilty of that offence<br />
and shall be liable to be proceeded against and punished accordingly.<br />
Explanation. – For the purpose of this section-</p>
<p>(a) “Company” means anybody corporate and includes a firm or other<br />
association of individuals; and</p>
<p>(b) “Director” in relation to a firm means a partner in the firm.</p>
<p>16. Whoever gives to any public servant any information, which he knows<br />
or believes to be false, intending thereby to cause, or knowing it to be likely<br />
that he will thereby cause, such public servant –</p>
<p>False information,<br />
with intend to<br />
cause public<br />
servant to use his<br />
lawful power or<br />
authority to the<br />
injury of another<br />
person.</p>
<p>(a) to do or omit anything which such public servant ought not do or<br />
omit if the true state of facts respecting which such information is<br />
given were known to him; or</p>
<p>(b) to use the lawful power of such public servant to the injury or<br />
annoyance of any person, shall be punished with imprisonment for<br />
a term which may extend to six months and with fine.</p>
<p>17. The punishment for an offence under this Act, shall be without prejudice<br />
to any other action, which has been or which may be taken under this Act,<br />
with respect to such offence.</p>
<p>Punishment to be<br />
without prejudice<br />
to any other<br />
action.</p>
<p>18. (1) The State Government may, by notification in the Official Gazette,<br />
make rules for carrying out the purposes of this Act.<br />
Power to make<br />
rules.</p>
<p>(2) In particular, and without prejudice to the generality of the foregoing<br />
power, such rules may provide for all or any of the following matters,<br />
namely: &#8211;</p>
<p>(a) prescribing the manner, fee and documents under sub-section (1) of<br />
section 4;<br />
(b) prescribing the form of license under sub-section (2) of section 4;<br />
(c) prescribing the manner of renewal of license under sub-section (4)<br />
of section 4;<br />
(d) Prescribing the manner for confiscation of property under section<br />
12; and<br />
(g) any other matter which have to be or may be prescribed.<br />
(3) Every rule made under this Act, shall be laid, as soon as may be after it<br />
is made before the House of the State Legislature, while it is in session, for<br />
a total period of ten days, which may be comprised in one session or in two<br />
or more successive sessions, and if, before the expiry of the session in which<br />
it is so laid or the successive sessions as aforesaid, the House agrees in<br />
making any modification in the rule, or the House agrees, that the rule</p>
<p>Offences by<br />
companies.</p>
<p>15 (1) If the person committing any offence punishable under this Act is a<br />
Company, every person, who at time of commission of the offence, was incharge of, and responsible to the Company for the conduct of its business,<br />
as well as the Company, shall be deemed to be guilty of the offence and<br />
shall be liable to be proceeded against and punished accordingly:<br />
Provided that nothing contained in this sub-section shall render any such<br />
person liable to any punishment provided in this Act, if he proves that the<br />
offence was committed without his knowledge or that he exercised all due<br />
diligence to prevent the commission of the offence.</p>
<p>(2) Notwithstanding anything contained in sub-section (1), where an offence<br />
under this Act, has been committed by a Company and it is proved that the<br />
offence has been committed with the consent or connivance of, or is<br />
attributable to any negligence on the part of any Director, Manager,<br />
Secretary any other officer of the Company, such Director, Manager,<br />
Secretary or other officer, shall also be deemed to be guilty of that offence<br />
and shall be liable to be proceeded against and punished accordingly.<br />
Explanation. – For the purpose of this section-</p>
<p>(a) “Company” means anybody corporate and includes a firm or other<br />
association of individuals; and</p>
<p>(b) “Director” in relation to a firm means a partner in the firm.</p>
<p>16. Whoever gives to any public servant any information, which he knows<br />
or believes to be false, intending thereby to cause, or knowing it to be likely<br />
that he will thereby cause, such public servant –</p>
<p>False information,<br />
with intend to<br />
cause public<br />
servant to use his<br />
lawful power or<br />
authority to the<br />
injury of another<br />
person.</p>
<p>(a) to do or omit anything which such public servant ought not do or<br />
omit if the true state of facts respecting which such information is<br />
given were known to him; or</p>
<p>(b) to use the lawful power of such public servant to the injury or<br />
annoyance of any person, shall be punished with imprisonment for<br />
a term which may extend to six months and with fine.</p>
<p>17. The punishment for an offence under this Act, shall be without prejudice<br />
to any other action, which has been or which may be taken under this Act,<br />
with respect to such offence.</p>
<p>Punishment to be<br />
without prejudice<br />
to any other<br />
action.</p>
<p>18. (1) The State Government may, by notification in the Official Gazette,<br />
make rules for carrying out the purposes of this Act.<br />
Power to make<br />
rules.</p>
<p>(2) In particular, and without prejudice to the generality of the foregoing<br />
power, such rules may provide for all or any of the following matters,<br />
namely: &#8211;</p>
<p>(a) prescribing the manner, fee and documents under sub-section (1) of<br />
section 4;<br />
(b) prescribing the form of license under sub-section (2) of section 4;<br />
(c) prescribing the manner of renewal of license under sub-section (4)<br />
of section 4;<br />
(d) Prescribing the manner for confiscation of property under section<br />
12; and<br />
(g) any other matter which have to be or may be prescribed.<br />
(3) Every rule made under this Act, shall be laid, as soon as may be after it<br />
is made before the House of the State Legislature, while it is in session, for<br />
a total period of ten days, which may be comprised in one session or in two<br />
or more successive sessions, and if, before the expiry of the session in which<br />
it is so laid or the successive sessions as aforesaid, the House agrees in<br />
making any modification in the rule, or the House agrees, that the rule</p>
<p>should not be made, the rule shall thereafter have effect only in such<br />
modified form or be of no effect, as the case may be, so, however, that any<br />
such modification or annulment shall be without prejudice to the validity of<br />
anything previously done or omitted to be done under that rule.<br />
Effect of other<br />
laws.</p>
<p>19. (1) The provisions of this Act and the rules made thereunder, shall have<br />
effect, notwithstanding anything inconsistent therewith contained in any<br />
other law for the time being in force or in any agreement or other instrument<br />
having effect by virtue of any other law.</p>
<p>(2) Save as provided in sub-section (1), the provisions of this Act, shall be<br />
in addition to, and not in derogation of, any other law for the time being in<br />
force.</p>
<p>Delegation. 20. The State Government may, by notification, direct that any power or<br />
function, which may be exercised for performed by it or by the competent<br />
authority under this Act or the rules made thereunder may, in relation to<br />
such matters and subject to such conditions, if any, be also exercised or<br />
performed by any officer or authority subordinate to it, as may be specified<br />
in that notification.</p>
<p>Protection of<br />
action taken in<br />
good faith.</p>
<p>21. (1) No suit, prosecution or other legal proceeding shall lie against any<br />
person for anything, which is done or intended to be done or order issued in<br />
good faith in pursuance of the provisions of this Act or the rule made<br />
thereunder.</p>
<p>(2) Save as otherwise expressly provide under this Act, no suit or other legal<br />
proceeding shall lie against the State Government for any damage caused or<br />
likely to be caused by anything done or intended to be done or order issued<br />
in good faith in pursuance of the provisions of this Act or the rules made<br />
thereunder.</p>
<p>22. (1) If any difficulty arises in giving effect to the provisions of this Act,<br />
the State Government may, by order published in the Official Gazette, make<br />
such provision, not inconsistent with the provisions of this Act, as may<br />
appear to be necessary or expedient for removing the difficulty:</p>
<p>Power to remove<br />
difficulties.</p>
<p>Provided that no order shall be made under this section after the expiry of a<br />
period of two years from the date of commencement of this Act.<br />
(2) Every order made under this section, shall be laid, as soon as may be,<br />
after it is made, before the Legislative Assembly.</p>
<p style="text-align: right;">H. P. S. MAHAL,<br />
Secretary to Government of Punjab,<br />
Department of Legal and Legislative Affairs.</p>
<p style="text-align: center;"><strong>NOTIFICATION</strong><br />
New Delhi, the 6th May, 2026<br />
S.O. 2262(E).— In exercise of the powers conferred by section 87 of the Punjab Reorganisation Act, 1966 (31<br />
of 1966), the Central Government hereby extends the Punjab Prevention of Human Smuggling (Amendment) Act, 2014<br />
(Punjab Act No. 11 of 2014) (hereinafter referred to as the principal Act) to the Union territory of Chandigarh, as in<br />
force in the State of Punjab from the date of publication of this notification, subject to the following modifications,<br />
namely:—<br />
1. This Act may be called the Punjab Prevention of Human Smuggling (Amendment) Act, 2014 (Extension to<br />
Chandigarh).<br />
2. In the principal Act, save as otherwise expressly provided hereunder,—<br />
(i) in section 2, for the words and figures “the Punjab Prevention of Human Smuggling Act, 2012”, the words,<br />
figures and brackets “the Punjab Prevention of Human Smuggling Act, 2012 (as extended to the Union<br />
Territory of Chandigarh)” shall be substituted;</p>
<p>(ii) (a) for the words “State”, “Punjab”, “State of Punjab”, wherever they occur, the words “Union Territory<br />
of Chandigarh” shall be substituted;<br />
(b) for the words “State Government”, “Government”, “Government of Punjab in the Department of<br />
Home Affairs and Justice”, wherever they occur, the word “Administrator” shall be substituted.</p>
<p style="text-align: right;">[F.No.U-11015/2/2025-UTL]<br />
PRAVEEN KUMAR RAI, Jt. Secy.</p>
<p style="text-align: center;"><strong>PART I</strong><br />
<strong>DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS, PUNJAB</strong><br />
<strong>NOTIFICATION</strong><br />
<strong>The 23rd May, 2014</strong><br />
<strong>No.11-Leg./2014.- The following Act of the Legislature of the State of Punjab received the assent of the</strong><br />
<strong>Governor of Punjab on the 7th Day of May, 2014, is hereby published for general information:-</strong><br />
<strong>THE PUNJAB PREVENTION OF HUMAN SMUGGLING (AMENDMENT) ACT, 2014</strong><br />
<strong>(Punjab Act No. 11 of 2014)</strong><br />
<strong>AN</strong><br />
<strong>ACT</strong></p>
<p style="text-align: left;">further to amend the Punjab Prevention of Human Smuggling Act, 2012.<br />
BE it enacted by the Legislature of the State of Punjab in the Sixty-fifth Year of the Republic of India, as follows:-<br />
1. (1) This Act may be called the Punjab Prevention of Human Smuggling<br />
(Amendment) Act, 2014.</p>
<p style="text-align: left;">Short title and<br />
commencement.</p>
<p style="text-align: left;">(2) It shall come into force at once.</p>
<p style="text-align: left;">2. In the Punjab Prevention of Human Smuggling Act, 2012 (hereinafter<br />
referred to as the principal Act), in the long title, for the words &#8220;THE<br />
PUNJAB PREVENTION OF HUMAN SMUGGLING&#8221;, the words &#8220;THE<br />
PUNJAB TRAVEL PROFESSIONALS&#8217; REGULATION&#8221; shall be<br />
substituted.</p>
<p style="text-align: left;">Amendment in the long<br />
title of Punjab Act 2 of<br />
2013.</p>
<p style="text-align: left;">3. In the principal Act, in the first line of the preamble, for the words “travel<br />
agents”, the words and signs “travel agents&#8221;, coaching institutes of IELTS,<br />
ticketing agents and general sales agents of airlines&#8221; shall be substituted.<br />
Amendment in the</p>
<p style="text-align: left;">preamble of Punjab Act<br />
2 of 2013.</p>
<p style="text-align: left;">4. In the principal Act, in section 6, after sub-section (5), the following subsection shall be added, namely:-<br />
Amendment in the<br />
section 6 of Punjab Act</p>
<p style="text-align: left;">2 2013.</p>
<p>&#8220;(6) If the licence is suspended, then applications, which are under process<br />
may be processed, but no new application shall be obtained.&#8221;</p>
<p>5. In the principal Act, in section 7, for the sign &#8220;.&#8221; appearing at the end, the sign<br />
&#8220;:&#8221; shall be substituted and thereafter the following proviso shall be added,<br />
namely:-<br />
Amendment in section 7<br />
of Punjab Act 2 of 2013.</p>
<p>&#8220;Provided that at the time of advertisement, if the license number is printed,<br />
then prior information need not to be given to competent authority.&#8221;.</p>
<p>6. In the principal Act, the existing section 10 read as sub-section(2) of section<br />
10 and sub-section(1) shall be inserted, namely:-<br />
Amendment in section<br />
10 of Punjab Act 2 of<br />
2013.</p>
<p>&#8220;(1) When a complaint is received by the Deputy Commissioner in the first<br />
instance may verify the same himself or get the same verified from the<br />
Additional Deputy Commissioner or Sub-Divisional Magistrate concerned.&#8221;.<br />
Amendment in section<br />
10 of Punjab Act 2 of<br />
2013.</p>
<p>7. In the principal Act, in section 13, in sub-section (1), for the words and sign<br />
&#8220;not less than three years, which may extend to seven years&#8221;, the words &#8221;<br />
which may be extended upto seven years depending upon the crime or<br />
offences committed&#8221; shall be substituted.</p>
<p style="text-align: left;">Amendment in section<br />
13 of Punjab Act 2 of<br />
2013.</p>
<p>&nbsp;</p>
<p style="text-align: right;">H.P.S. MAHAL,<br />
Secretary to Government of Punjab,<br />
Department of Legal and Legislative Affairs.</p>
<p><img fetchpriority="high" decoding="async" class="alignnone" src="https://upload.wikimedia.org/wikipedia/commons/7/75/Logo_of_the_Gazette_of_India.svg" alt="Extension of the Punjab Prevention of Human Smuggling Act, 2012 and 2014." width="556" height="214" /></p>
<h3>Download PDF <a href="https://www.taxheal.com/wp-content/uploads/2026/05/272302.pdf" target="_blank" rel="noopener">click here</a></h3>
<h4>Read more</h4>
<p><strong>for more refer income tax website <a href="https://www.incometax.gov.in/" target="_blank" rel="noopener">click here</a></strong></p>
<p><strong>for more refer YouTube Subscribe website <a href="https://www.youtube.com/@casatbirsingh" target="_blank" rel="noopener">click here</a></strong></p>
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		<title>FORM FOR INFORMATION OF TENANCY IN CHANDIGARH TO RENT AUTHORITY</title>
		<link>https://www.taxheal.com/form-for-information-of-tenancy-in-chandigarh-to-rent-authroity.html</link>
		
		<dc:creator><![CDATA[CA Satbir Singh]]></dc:creator>
		<pubDate>Fri, 08 May 2026 06:35:19 +0000</pubDate>
				<category><![CDATA[Home]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[FORM FOR INFORMATION OF TENANCY IN CHANDIGARH]]></category>
		<category><![CDATA[FORM FOR INFORMATION OF TENANCY IN CHANDIGARH TO RENT AUTHROITY]]></category>
		<guid isPermaLink="false">https://www.taxheal.com/?p=128600</guid>

					<description><![CDATA[<p>FORM FOR INFORMATION OF TENANCY IN CHANDIGARH TO RENT AUTHORITY FORM FOR INFORMATION OF TENANCY IN CHANDIGARH AS PER  the Assam Tenancy Act, 2021 (hereinafter referred to as the Principal Act), so extended to the Union territory of Chandigarh, ON 6TH MAY 2026 by Govt of india THE FIRST SCHEDULE [See section 4(1) and 7(2)]… <span class="read-more"><a href="https://www.taxheal.com/form-for-information-of-tenancy-in-chandigarh-to-rent-authroity.html">Read More &#187;</a></span></p>
]]></description>
										<content:encoded><![CDATA[<h2 style="text-align: center;">FORM FOR INFORMATION OF TENANCY IN CHANDIGARH TO RENT AUTHORITY</h2>
<p style="text-align: center;"><a href="https://www.taxheal.com/wp-content/uploads/2026/05/Untitled.pnghd_.png"><img decoding="async" class="alignnone wp-image-128744 size-full" src="https://www.taxheal.com/wp-content/uploads/2026/05/Untitled.pnghd_.png" alt="FORM FOR INFORMATION OF TENANCY IN CHANDIGARH TO RENT AUTHORITY" width="400" height="398" /></a></p>
<p>FORM FOR INFORMATION OF TENANCY IN CHANDIGARH AS PER  the Assam Tenancy Act, 2021 (hereinafter referred to as the Principal Act), so extended to the Union territory of Chandigarh, ON 6TH MAY 2026 by Govt of india</p>
<p style="text-align: center;">THE FIRST SCHEDULE<br />
[See section 4(1) and 7(2)]<br />
FORM FOR INFORMATION OF TENANCY</p>
<p>The Form for Information of Tenancy, which must be submitted to the Rent Authority, is outlined in the <strong>First Schedule</strong> of the Act.</p>
<p>Here are the key features and details required in this form:</p>
<ul>
<li><strong>Personal and Contact Information:</strong> The form requires the names, addresses, mobile numbers, and email IDs of the landlord, the tenant, and the property manager (if one is appointed).</li>
<li><strong>Mandatory Identification:</strong> It requires the <strong>Permanent Account Number (PAN)</strong> and <strong>Aadhaar number</strong> of the landlord, the tenant, and the property manager.</li>
<li><strong>Property and Tenancy Details:</strong> You must provide a description of the rented premises (including any attached land), the duration of the tenancy, the exact date possession is given to the tenant, and details of any previous tenancy.</li>
<li><strong>Financial Terms:</strong> The form must explicitly state the <strong>rent payable</strong> as well as any <strong>other charges</strong> the tenant is responsible for, such as electricity, water, extra furnishings, and other services.</li>
<li><strong>Provided Amenities:</strong> It requires a list of any furniture and other equipment provided to the tenant by the landlord.</li>
<li><strong>Required Enclosures:</strong> When submitting the form, the following documents must be attached:
<ul>
<li>The written <strong>Tenancy Agreement</strong>.</li>
<li><strong>Self-attested copies</strong> of both the PAN and Aadhaar cards for both the landlord and the tenant.</li>
</ul>
</li>
<li><strong>Signatures and Photographs:</strong> The completed form must include the <strong>signatures and photographs</strong> of both the landlord and the tenant.</li>
</ul>
<h4>DOWNLOAD FORM FOR INFORMATION OF TENANCY IN CHANDIGARH TO RENT AUTHROITY</h4>
<h4>FORM FOR INFORMATION OF TENANCY IN CHANDIGARH <a href="https://www.taxheal.com/wp-content/uploads/2026/05/272303-FORM-FOR-INFORMATION-OF-TENANCY-IN-CHANDIGARH-TAXHEAL.pdf" target="_blank" rel="noopener">CLICK HERE</a></h4>
<p><strong>Related Post</strong></p>
<p><a href="https://www.taxheal.com/rent-of-property-in-chandigarh-new-change.html" target="_blank" rel="noopener">Rent of Property in Chandigarh New Change from 6th May 2026 Assam Tenancy Act 2021 (as extended to Chandigarh)</a></p>
<h4>Read more</h4>
<p><strong>for more refer income tax website <a href="https://www.incometax.gov.in/" target="_blank" rel="noopener">click here</a></strong></p>
<p><strong>for more refer YouTube Subscribe website <a href="https://www.youtube.com/@casatbirsingh" target="_blank" rel="noopener">click here</a></strong></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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		<title>Important Income Tax Case Laws 04.05.2026</title>
		<link>https://www.taxheal.com/important-income-tax-case-laws-04-05-2026.html</link>
		
		<dc:creator><![CDATA[CA Satbir Singh]]></dc:creator>
		<pubDate>Thu, 07 May 2026 09:54:52 +0000</pubDate>
				<category><![CDATA[Home]]></category>
		<guid isPermaLink="false">https://www.taxheal.com/?p=128329</guid>

					<description><![CDATA[<p>Important Income Tax Case Laws 04.05.2026 Relevant Act Section Case Law Title Citation Brief Summary Income Tax Sec 4 &#38; 5 ACIT v. Aamby Valley Ltd. Click Here Real vs. Notional Income: Customer advances and interest-free advances to related parties cannot be taxed as hypothetical income if business transactions are genuine and settled later. Income… <span class="read-more"><a href="https://www.taxheal.com/important-income-tax-case-laws-04-05-2026.html">Read More &#187;</a></span></p>
]]></description>
										<content:encoded><![CDATA[<h2 style="text-align: center;">Important Income Tax Case Laws 04.05.2026</h2>
<table data-path-to-node="2">
<thead>
<tr>
<td><strong>Relevant Act</strong></td>
<td><strong>Section</strong></td>
<td><strong>Case Law Title</strong></td>
<td><strong>Citation</strong></td>
<td><strong>Brief Summary</strong></td>
</tr>
</thead>
<tbody>
<tr>
<td><span data-path-to-node="2,1,0,0"><b data-path-to-node="2,1,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,1,1,0"><b data-path-to-node="2,1,1,0" data-index-in-node="0">Sec 4 &amp; 5</b></span></td>
<td><span data-path-to-node="2,1,2,0">ACIT v. Aamby Valley Ltd.</span></td>
<td><a href="https://www.taxheal.com/1352-1434-del-of-2018.html" target="_blank" rel="noopener"><span data-path-to-node="2,1,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,1,4,0"><b data-path-to-node="2,1,4,0" data-index-in-node="0">Real vs. Notional Income:</b> Customer advances and interest-free advances to related parties cannot be taxed as hypothetical income if business transactions are genuine and settled later.</span></td>
</tr>
<tr>
<td><span data-path-to-node="2,3,0,0"><b data-path-to-node="2,3,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,3,1,0"><b data-path-to-node="2,3,1,0" data-index-in-node="0">Sec 12A</b></span></td>
<td><span data-path-to-node="2,3,2,0">Shri Guru Ram Dass Educational Society v. DCIT</span></td>
<td><a href="https://www.taxheal.com/224-chd-of-2026.html" target="_blank" rel="noopener"><span data-path-to-node="2,3,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,3,4,0"><b data-path-to-node="2,3,4,0" data-index-in-node="0">Jurisdiction:</b> Renewal of registration must be adjudicated by the Commissioner (Exemptions). Rejection by PCIT (Central) based on irrelevant past search material is invalid.</span></td>
</tr>
<tr>
<td><span data-path-to-node="2,4,0,0"><b data-path-to-node="2,4,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,4,1,0"><b data-path-to-node="2,4,1,0" data-index-in-node="0">Sec 14A</b></span></td>
<td><span data-path-to-node="2,4,2,0">ACIT v. Aamby Valley Ltd.</span></td>
<td><a href="https://www.taxheal.com/1352-1434-del-of-2018.html" target="_blank" rel="noopener"><span data-path-to-node="2,1,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,4,4,0"><b data-path-to-node="2,4,4,0" data-index-in-node="0">Exempt Income:</b> Disallowance u/s 14A read with Rule 8D is not applicable if the assessee has not earned any exempt income during the year.</span></td>
</tr>
<tr>
<td><span data-path-to-node="2,5,0,0"><b data-path-to-node="2,5,0,0" data-index-in-node="0">CA Act, 1949</b></span></td>
<td><span data-path-to-node="2,5,1,0"><b data-path-to-node="2,5,1,0" data-index-in-node="0">Sec 23</b></span></td>
<td><span data-path-to-node="2,5,2,0">Gaurav Aggrawal v. ICAI</span></td>
<td><a href="https://www.taxheal.com/70626-70628-74997-81802-of-2025.html" target="_blank" rel="noopener"><span data-path-to-node="2,5,3,0">Clcik Here</span></a></td>
<td><span data-path-to-node="2,5,4,0"><b data-path-to-node="2,5,4,0" data-index-in-node="0">ICAI Meetings:</b> For shorter notice meetings under Regulation 142, a majority of the Council is mandatory. Meetings approved by &lt; 50% members are invalid.</span></td>
</tr>
<tr>
<td><span data-path-to-node="2,6,0,0"><b data-path-to-node="2,6,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,6,1,0"><b data-path-to-node="2,6,1,0" data-index-in-node="0">Sec 36(1)(va)</b></span></td>
<td><span data-path-to-node="2,6,2,0">R. K. &amp; Company Manpower (P.) Ltd. v. DCIT</span></td>
<td><a href="https://www.taxheal.com/6600-6601-6602-delhi-of-2025.html" target="_blank" rel="noopener"><span data-path-to-node="2,6,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,6,4,0"><b data-path-to-node="2,6,4,0" data-index-in-node="0">Scope of 143(1):</b> Disallowance for delayed PF/ESI deposits cannot be made as a &#8220;prima facie adjustment&#8221; during central processing; it is beyond the scope of Sec 143(1).</span></td>
</tr>
<tr>
<td><span data-path-to-node="2,7,0,0"><b data-path-to-node="2,7,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,7,1,0"><b data-path-to-node="2,7,1,0" data-index-in-node="0">Sec 37(1)</b></span></td>
<td><span data-path-to-node="2,7,2,0">ACIT v. Aamby Valley Ltd.</span></td>
<td><span data-path-to-node="2,7,3,0"><a href="https://www.taxheal.com/1352-1434-del-of-2018.html" target="_blank" rel="noopener">Click Here</a></span></td>
<td><span data-path-to-node="2,7,4,0"><b data-path-to-node="2,7,4,0" data-index-in-node="0">Crystallized Liability:</b> Expenses for which invoices were received in the current year are deductible even if they pertain to prior periods, as the liability was ascertained now.</span></td>
</tr>
<tr>
<td><span data-path-to-node="2,8,0,0"><b data-path-to-node="2,8,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,8,1,0"><b data-path-to-node="2,8,1,0" data-index-in-node="0">Sec 37(1)</b></span></td>
<td><span data-path-to-node="2,8,2,0">ACIT v. United Hitech (P.) Ltd.</span></td>
<td><a href="https://www.taxheal.com/5334-del-of-2024.html" target="_blank" rel="noopener"><span data-path-to-node="2,8,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,8,4,0"><b data-path-to-node="2,8,4,0" data-index-in-node="0">Interest on Statutory Dues:</b> Interest paid on delayed PF, ESI, and Service Tax is compensatory in nature and allowable as business expenditure.</span></td>
</tr>
<tr>
<td><span data-path-to-node="2,9,0,0"><b data-path-to-node="2,9,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,9,1,0"><b data-path-to-node="2,9,1,0" data-index-in-node="0">Sec 40(a)(ia)</b></span></td>
<td><span data-path-to-node="2,9,2,0">ACIT v. Aamby Valley Ltd.</span></td>
<td><span data-path-to-node="2,9,3,0"><a href="https://www.taxheal.com/1352-1434-del-of-2018.html" target="_blank" rel="noopener">Click Here</a></span></td>
<td><span data-path-to-node="2,9,4,0"><b data-path-to-node="2,9,4,0" data-index-in-node="0">Hospitality TDS:</b> No TDS is required on hospitality-related payments like food, drinks, and lounge charges; disallowance u/s 40(a)(ia) is improper.</span></td>
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<td><span data-path-to-node="2,10,0,0"><b data-path-to-node="2,10,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,10,1,0"><b data-path-to-node="2,10,1,0" data-index-in-node="0">Sec 40A(3)</b></span></td>
<td><span data-path-to-node="2,10,2,0">ACIT v. United Hitech (P.) Ltd.</span></td>
<td><a href="https://www.taxheal.com/5334-del-of-2024.html" target="_blank" rel="noopener"><span data-path-to-node="2,8,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,10,4,0"><b data-path-to-node="2,10,4,0" data-index-in-node="0">Cash Payments:</b> Disallowance is only triggered if an individual payment to a person in a day exceeds ₹10,000. Aggregates of smaller payments are not hit by this section.</span></td>
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<td><span data-path-to-node="2,11,0,0"><b data-path-to-node="2,11,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,11,1,0"><b data-path-to-node="2,11,1,0" data-index-in-node="0">Sec 50C</b></span></td>
<td><span data-path-to-node="2,11,2,0">Rasmeet Singh Malhotra v. DCIT</span></td>
<td><a href="https://www.taxheal.com/979-ind-of-2025.html" target="_blank" rel="noopener"><span data-path-to-node="2,11,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,11,4,0"><b data-path-to-node="2,11,4,0" data-index-in-node="0">Safe Harbour Limit:</b> Retrospective application of the 5% safe harbour limit means stamp duty value cannot be adopted if the variation is only 1.19%.</span></td>
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<td><span data-path-to-node="2,12,0,0"><b data-path-to-node="2,12,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,12,1,0"><b data-path-to-node="2,12,1,0" data-index-in-node="0">Sec 54F</b></span></td>
<td><span data-path-to-node="2,12,2,0">DCIT v. Vijay Hathising Shah</span></td>
<td><a href="https://www.taxheal.com/1546-ahd-of-2025.html" target="_blank" rel="noopener"><span data-path-to-node="2,12,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,12,4,0"><b data-path-to-node="2,12,4,0" data-index-in-node="0">Residential Status:</b> Open land with no construction cannot be treated as a &#8220;residential house&#8221; to disqualify an assessee from claiming Sec 54F exemption.</span></td>
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<td><span data-path-to-node="2,13,0,0"><b data-path-to-node="2,13,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,13,1,0"><b data-path-to-node="2,13,1,0" data-index-in-node="0">Sec 61</b></span></td>
<td><span data-path-to-node="2,13,2,0">ITO v. Arcil Retail Loan Portfolio Trust</span></td>
<td><a href="https://www.taxheal.com/8415-mum-of-2025.html" target="_blank" rel="noopener"><span data-path-to-node="2,13,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,13,4,0"><b data-path-to-node="2,13,4,0" data-index-in-node="0">Revocable Trust:</b> Income of a securitisation trust with revocable contributions is taxable in the hands of the SR holders, not the trust itself as an AOP.</span></td>
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<td><span data-path-to-node="2,14,0,0"><b data-path-to-node="2,14,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,14,1,0"><b data-path-to-node="2,14,1,0" data-index-in-node="0">Sec 68</b></span></td>
<td><span data-path-to-node="2,14,2,0">ACIT v. United Hitech (P.) Ltd.</span></td>
<td><a href="https://www.taxheal.com/5334-del-of-2024.html" target="_blank" rel="noopener"><span data-path-to-node="2,8,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,14,4,0"><b data-path-to-node="2,14,4,0" data-index-in-node="0">Customer Advances:</b> Credits arising from genuine business transactions/advances subsequently recorded as sales cannot be treated as unexplained cash credits.</span></td>
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<td><span data-path-to-node="2,15,0,0"><b data-path-to-node="2,15,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,15,1,0"><b data-path-to-node="2,15,1,0" data-index-in-node="0">Sec 80JJAA</b></span></td>
<td><span data-path-to-node="2,15,2,0">AML Motors (P.) Ltd. v. DCIT</span></td>
<td><a href="https://www.taxheal.com/1558-hyd-of-2025.html" target="_blank" rel="noopener"><span data-path-to-node="2,15,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,15,4,0"><b data-path-to-node="2,15,4,0" data-index-in-node="0">Form 10DA:</b> Delay in uploading the audit report due to technical glitches is not a ground for denial if the report was obtained within the prescribed time.</span></td>
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<td><span data-path-to-node="2,16,0,0"><b data-path-to-node="2,16,0,0" data-index-in-node="0">Income Tax</b></span></td>
<td><span data-path-to-node="2,16,1,0"><b data-path-to-node="2,16,1,0" data-index-in-node="0">Sec 115BAC</b></span></td>
<td><span data-path-to-node="2,16,2,0">Arun Gopilal Samnani v. CPC Bangalore</span></td>
<td><a href="https://www.taxheal.com/1558-hyd-of-2025.html" target="_blank" rel="noopener"><span data-path-to-node="2,16,3,0">Click Here</span></a></td>
<td><span data-path-to-node="2,16,4,0"><b data-path-to-node="2,16,4,0" data-index-in-node="0">New Tax Regime:</b> Filing of Form 10-IE is directory. If the form is on record during processing, the AO must allow the new tax regime even if filed after the 139(1) date.</span></td>
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</table>
<p>For More :- Read <a href="https://www.taxheal.com/important-income-tax-case-laws-01-05-2026.html" target="_blank" rel="noopener">Important Income Tax Case Laws 01.05.2026</a></p>
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		<title>Mandatory vs. Directory: Validity of New Tax Regime (115BAC) for Delayed Form 10-IE</title>
		<link>https://www.taxheal.com/1540-ahd-of-2025.html</link>
		
		<dc:creator><![CDATA[CA Satbir Singh]]></dc:creator>
		<pubDate>Thu, 07 May 2026 07:59:23 +0000</pubDate>
				<category><![CDATA[Home]]></category>
		<category><![CDATA[115bac]]></category>
		<category><![CDATA[Directory: Validity of New Tax Regime]]></category>
		<category><![CDATA[form 10 ie]]></category>
		<category><![CDATA[Mandatory Validity of New Tax Regime]]></category>
		<category><![CDATA[Mandatory vs. Directory: Validity of New Tax Regime (115BAC) for Delayed Form 10-IE]]></category>
		<category><![CDATA[New Tax Regime]]></category>
		<category><![CDATA[Regime]]></category>
		<category><![CDATA[Tax]]></category>
		<category><![CDATA[Validity of New Tax Regime]]></category>
		<category><![CDATA[Validity of New Tax Regime (115BAC) for Delayed Form 10-IE]]></category>
		<guid isPermaLink="false">https://www.taxheal.com/?p=128345</guid>

					<description><![CDATA[<p>Mandatory vs. Directory: Validity of New Tax Regime (115BAC) for Delayed Form 10-IE Facts The Choice: For the Assessment Year 2021-22, the Assessee intended to opt for the &#8220;New Tax Regime&#8221; under Section 115BAC. The Procedure: To exercise this option, the taxpayer was required to file Form No. 10-IE before the due date specified under… <span class="read-more"><a href="https://www.taxheal.com/1540-ahd-of-2025.html">Read More &#187;</a></span></p>
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<h2 data-path-to-node="0"><b data-path-to-node="0" data-index-in-node="0">Mandatory vs. Directory: Validity of New Tax Regime (115BAC) for Delayed Form 10-IE</b></h2>
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<h3 data-path-to-node="2"><b data-path-to-node="2" data-index-in-node="0">Facts</b></h3>
<ul data-path-to-node="3">
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<p data-path-to-node="3,0,0"><b data-path-to-node="3,0,0" data-index-in-node="0">The Choice:</b> For the Assessment Year 2021-22, the Assessee intended to opt for the &#8220;New Tax Regime&#8221; under <b data-path-to-node="3,0,0" data-index-in-node="105">Section 115BAC</b>.</p>
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<p data-path-to-node="3,1,0"><b data-path-to-node="3,1,0" data-index-in-node="0">The Procedure:</b> To exercise this option, the taxpayer was required to file <b data-path-to-node="3,1,0" data-index-in-node="74">Form No. 10-IE</b> before the due date specified under Section 139(1).</p>
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<p data-path-to-node="3,2,0"><b data-path-to-node="3,2,0" data-index-in-node="0">The Delay:</b> The Assessee filed the return and the mandatory Form 10-IE, but the form was submitted along with the return <i data-path-to-node="3,2,0" data-index-in-node="120">after</i> the original Section 139(1) due date had passed.</p>
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<p data-path-to-node="3,3,0"><b data-path-to-node="3,3,0" data-index-in-node="0">The Conflict:</b> The Centralized Processing Centre (CPC) ignored the 115BAC option because the form was technically &#8220;late.&#8221; It processed the return under the <b data-path-to-node="3,3,0" data-index-in-node="155">Old Tax Regime</b>, resulting in a significantly higher tax demand.</p>
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<p data-path-to-node="3,4,0"><b data-path-to-node="3,4,0" data-index-in-node="0">Rectification:</b> The Assessee filed a rectification application under <b data-path-to-node="3,4,0" data-index-in-node="68">Section 154</b>, arguing that since the form was available on record at the time of processing, the benefit of the new regime should be granted.</p>
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<h3 data-path-to-node="5"><b data-path-to-node="5" data-index-in-node="0">Decision</b></h3>
<ul data-path-to-node="6">
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<p data-path-to-node="6,0,0"><b data-path-to-node="6,0,0" data-index-in-node="0">Final Verdict:</b> In favour of the <b data-path-to-node="6,0,0" data-index-in-node="32">Assessee</b>.</p>
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<p data-path-to-node="6,1,0"><b data-path-to-node="6,1,0" data-index-in-node="0">Ratio Decidendi:</b></p>
<ul data-path-to-node="6,1,1">
<li>
<p data-path-to-node="6,1,1,0,0"><b data-path-to-node="6,1,1,0,0" data-index-in-node="0">Directory Nature of Timelines:</b> The Tribunal/Court held that the requirement to file Form No. 10-IE within the Section 139(1) deadline is <b data-path-to-node="6,1,1,0,0" data-index-in-node="137">directory, not mandatory</b>. Procedural timelines should not be used to strip a taxpayer of a substantive statutory benefit.</p>
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<p data-path-to-node="6,1,1,1,0"><b data-path-to-node="6,1,1,1,0" data-index-in-node="0">Availability at Processing:</b> It was emphasized that the Assessing Officer (AO) or CPC cannot ignore a Form 10-IE that is already available on the portal at the time of processing the return.</p>
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<p data-path-to-node="6,1,1,2,0"><b data-path-to-node="6,1,1,2,0" data-index-in-node="0">Rectifiable Error:</b> The failure to consider a form already on record constitutes a &#8220;mistake apparent from the record.&#8221; Therefore, the AO was directed to rectify the intimation under Section 154 and compute the tax as per the New Tax Regime.</p>
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<hr data-path-to-node="7" />
<h3 data-path-to-node="8"><b data-path-to-node="8" data-index-in-node="0">Key Takeaways</b></h3>
<ul data-path-to-node="9">
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<p data-path-to-node="9,0,0"><b data-path-to-node="9,0,0" data-index-in-node="0">Relief for Technical Lapses:</b> This is a landmark ruling for taxpayers who missed the 10-IE deadline in earlier years. It establishes that as long as the form is filed before the return is actually processed/assessed, the beneficial tax rates of Section 115BAC cannot be denied.</p>
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<p data-path-to-node="9,1,0"><b data-path-to-node="9,1,0" data-index-in-node="0">Strategy for Rectifications:</b> If a client’s return has been processed under the Old Tax Regime due to a delayed Form 10-IE, do not just appeal; file a <b data-path-to-node="9,1,0" data-index-in-node="150">Section 154 rectification</b> request immediately, citing this &#8220;directory vs. mandatory&#8221; principle.</p>
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<p data-path-to-node="9,2,0"><b data-path-to-node="9,2,0" data-index-in-node="0">Portal Logic vs. Law:</b> The CPC&#8217;s automated logic often rejects delayed forms. This case law provides the legal ammunition to override that automation during the appellate or rectification stage.</p>
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<p data-path-to-node="9,3,0"><b data-path-to-node="9,3,0" data-index-in-node="0">IT Act 2025 Transition:</b> While the New Tax Regime has become the &#8220;default&#8221; in recent years, the principle that procedural filing dates (like under the renumbered <b data-path-to-node="9,3,0" data-index-in-node="161">Section 202</b>) are directory will remain a crucial defense for various tax elections and exemptions.</p>
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<div id="111070000000000011" style="text-align: center;">IN THE ITAT AHMEDABAD BENCH &#8216;SMC&#8217;</div>
<div id="" style="text-align: center;">Arun Gopilal Samnani</div>
<div style="text-align: center;">v.</div>
<div id="" style="text-align: center;">CPC Bangalore<sup>*</sup></div>
<div id="dbs_judge" style="text-align: center;"><span id="111170000000048674">Sanjay Garg</span>, Judicial Member<br />
and <span id="111170000000098996">Narendra Prasad Sinha</span>, Accountant Member</div>
<div style="text-align: center;">IT Appeal No. 1540 (AHD) of 2025<br />
[Assessment year 2021-22]</div>
<div style="text-align: center;">APRIL  21, <span class="researchdochighlight">2026</span></div>
<div>
<div id="digest">
<div><b>Biren Shah</b>, AR<i> for the Appellant. </i><b>Smt. Ananya Kulshresth</b>, Sr. DR<i> for the Respondent.</i></div>
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<div id="caseOrder">
<div>
<div>ORDER</div>
<div></div>
<div><b>Narendra Prasad Sinha, Accountant Member.-</b> This appeal is filed by the assessee against the order dated 04.07.2025 passed by Addl/JCIT(Appeal) &#8211; 7 Mumbai [hereinafter referred to as &#8216;Addl. CIT(A)&#8217;] for the Assessment Year (A.Y.) 2021-22 in the proceeding u/s. 154 of the Income Tax Act.</div>
<div><b>2. </b>The brief facts of the case are that the assessee had filed his return of income for A.Y. 2021-22 on 28.03.2022 declaring total income of Rs.9,21,200/-. The return was processed u/s. 143(3) of the Act by the CPC on 11.04.2022 raising demand of Rs.40,840/-. The demand was raised for the reason that the return was processed as per the old tax regime instead of the new tax regime. The assessee had opted for new tax regime by filing form No. 10-IE on 22.03.2022. Thereafter, the assessee had filed a rectification application u/s. 154 of the Act, with a request to allow the benefit of the new tax regime in accordance with Form No. 10-IE filed by him. The CPC had passed an order u/s. 154 of the Act on 01.08.2024, rejecting the application of the assessee.</div>
<div><b>3. </b>Aggrieved with the rectification order of the CPC, the assessee had filed an appeal before the first appellate authority, which was decided by the learned Addl. CIT(A), vide the impugned order and the appeal of the assessee was dismissed. Th</div>
<div><b>4. </b>Now the assessee is in second appeal before us. The following grounds have been taken in this appeal:</div>
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<td class="list" align="right" valign="top">1.</td>
<td class="list" align="justify" valign="top"></td>
<td class="list" align="justify" valign="top">Ld. Officer, CPC, has erred in processing the return of income for Asst. Year 2021-22 under old regime though the assessee filed form 10-IE to opt for new regime on 22.03.2022.</td>
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<table class="list">
<tbody>
<tr>
<td class="list" align="right" valign="top">2.</td>
<td class="list" align="justify" valign="top"></td>
<td class="list" align="justify" valign="top">Without prejudice to ground-1 and alternatively Ld. AO, CPC has erred in not granting benefit of deductions allowable under old regime. Therefore, the case shall be transferred to ld. Jurisdiction AO and JAO shall allow the eligible deductions and benefits under old regime based on the documents produced by assessee.</td>
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</tbody>
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<table class="list">
<tbody>
<tr>
<td class="list" align="right" valign="top">3.</td>
<td class="list" align="justify" valign="top"></td>
<td class="list" align="justify" valign="top">The appellant craves to leave, add, alter, modify and/or withdraw any grounds of appeal either before or during the course of the hearing.</td>
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<div><b>5. </b>The first ground pertains to processing of the return under the old regime in spite of form No. 10-IE filed by assessee opting for new tax regime. Shri Biren Shah, the Ld. AR of the assessee, explained that Form No. 10-IE was required to be filed within the due date of filing of return. In the present case, the assessee had filed the return u/s. 139(4) of the Act, along with form No. 10-IE on 23.08.2022. The Ld. AR submitted that the filing of form to opt for new tax regime was only a procedural requirement and the form No. 10-IE as filed by the assessee was duly available with the CPC at the time of processing of the return. Therefore, the CPC was not correct in overlooking the form No. 10-IE and raising demand under the old tax regime. The Ld. AR further submitted that this matter is covered by the decision of Co-ordinate bench of Pune Tribunal in the case of <i>Akshay Devendra Birari</i> v. <i>Dy. CIT </i>(Pune &#8211; Trib.) and also by the Co-ordinate bench of this Tribunal in assessee&#8217;s own case for A.Y. 2023-24 in <i>Arun Gopilal Samnani</i> v. <i>ITO </i>(Ahmedabad &#8211; Trib.)/ITA No. 2082/Ahd/2024 dated 29.04.2025.</div>
<div><b>6. </b><i>Per Contra</i>, Smt. Ananya Kulshresth, the Ld. Sr. DR submitted that the assessee was required to opt for new tax regime by filing form No. 10-IE within the time limit for due date of return u/s. 139(1) of the Act, which was not complied in the present case. Therefore, the CPC had rightly processed the return of the assessee as per old tax regime, as the form No. 10-IE was not filed within the due date.</div>
<div><b>7. </b>We have considered the rival submissions. The only issue to be considered in the present case whether the CPC was correct in processing the return of the assessee as per old tax regime, in spite of the fact that form No. 10-IE filed by the assessee was available at the time of processing of the return. Admittedly, the assessee had failed to file the prescribed form No. 10-IE within the prescribed time limit which was the due date for filing of return u/s. 139(1) of the Act. The assessee had filed the form No. 10-IE on 28.03.2022 along with return of income. Thus, the form No. 10-IE was available with the CPC and should have been considered while processing the return u/s. 143(1) of the Act. The filing of form No. 10-IE is not a mandatory requirement. The option given to the assessee to opt for the new tax regime was only directory in nature. Therefore, the CPC was not correct in ignoring the form No. 10-IE available at the time of processing of the return. This issue is found squarely covered by the decision of Co-ordinate bench of Pune tribunal in the case <i>Akshay Devendra Birari</i> (<i>supra</i>) and also by decision of the Coordinate bench of this Tribunal in the assessee&#8217;s own case in ITA No. 2082/Ahd/2024, A.Y 2023-24. Accordingly, we direct the CPC/JAO to amend the intimation u/s. 143(1) of the Act, by taking into consideration the form No. 10-IE filed by the assessee and the tax should be levied in accordance with the new tax regime. The ground taken by the assessee is allowed.</div>
<div><b>8. </b>The ground No. 2 taken by the assessee is only an alternative ground and in view of the decision as taken in respect of ground No. 1, this ground has become infructuous. Hence, the ground No. 2 is dismissed.</div>
<div><b>9. </b>In the result, the appeal of the assessee is partly allowed.</div>
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		<title>Delayed PF/ESI Deposits Cannot be Disallowed as a &#8216;Prima Facie&#8217; Adjustment u/s 143(1)</title>
		<link>https://www.taxheal.com/6600-6601-6602-delhi-of-2025.html</link>
		
		<dc:creator><![CDATA[CA Satbir Singh]]></dc:creator>
		<pubDate>Thu, 07 May 2026 07:48:31 +0000</pubDate>
				<category><![CDATA[Home]]></category>
		<guid isPermaLink="false">https://www.taxheal.com/?p=128341</guid>

					<description><![CDATA[<p>Delayed PF/ESI Deposits Cannot be Disallowed as a &#8216;Prima Facie&#8217; Adjustment u/s 143(1) Facts The Dispute: For the Assessment Years 2018-19 to 2020-21, the Assessing Officer (AO) made additions to the total income of the Assessee on account of delayed deposits of employees&#8217; contributions to Provident Fund (PF) and Employee State Insurance (ESI). The Mechanism:… <span class="read-more"><a href="https://www.taxheal.com/6600-6601-6602-delhi-of-2025.html">Read More &#187;</a></span></p>
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<h2 data-path-to-node="0"><b data-path-to-node="0" data-index-in-node="0">Delayed PF/ESI Deposits Cannot be Disallowed as a &#8216;Prima Facie&#8217; Adjustment u/s 143(1)</b></h2>
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<h3 data-path-to-node="2"><b data-path-to-node="2" data-index-in-node="0">Facts</b></h3>
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<p data-path-to-node="3,0,0"><b data-path-to-node="3,0,0" data-index-in-node="0">The Dispute:</b> For the Assessment Years 2018-19 to 2020-21, the Assessing Officer (AO) made additions to the total income of the Assessee on account of delayed deposits of employees&#8217; contributions to Provident Fund (PF) and Employee State Insurance (ESI).</p>
</li>
<li>
<p data-path-to-node="3,1,0"><b data-path-to-node="3,1,0" data-index-in-node="0">The Mechanism:</b> These additions were not made through a regular scrutiny assessment but as &#8220;prima facie adjustments&#8221; during the centralized processing of the return under <b data-path-to-node="3,1,0" data-index-in-node="170">Section 143(1)</b>.</p>
</li>
<li>
<p data-path-to-node="3,2,0"><b data-path-to-node="3,2,0" data-index-in-node="0">The Context:</b> The adjustments were carried out prior to the landmark Supreme Court ruling in <i data-path-to-node="3,2,0" data-index-in-node="92">Checkmate Services (P.) Ltd. v. CIT</i>, which eventually settled the law that late deposits of employees&#8217; contributions are not deductible.</p>
</li>
<li>
<p data-path-to-node="3,3,0"><b data-path-to-node="3,3,0" data-index-in-node="0">The Challenge:</b> The Assessee challenged the additions on the grounds that the nature of this disallowance is &#8220;debatable&#8221; and falls outside the narrow technical scope of Section 143(1).</p>
</li>
</ul>
<hr data-path-to-node="4" />
<h3 data-path-to-node="5"><b data-path-to-node="5" data-index-in-node="0">Decision</b></h3>
<ul data-path-to-node="6">
<li>
<p data-path-to-node="6,0,0"><b data-path-to-node="6,0,0" data-index-in-node="0">Final Verdict:</b> In favour of the <b data-path-to-node="6,0,0" data-index-in-node="32">Assessee</b>.</p>
</li>
<li>
<p data-path-to-node="6,1,0"><b data-path-to-node="6,1,0" data-index-in-node="0">Ratio Decidendi:</b></p>
<ul data-path-to-node="6,1,1">
<li>
<p data-path-to-node="6,1,1,0,0"><b data-path-to-node="6,1,1,0,0" data-index-in-node="0">Scope of Section 143(1):</b> The Court/Tribunal held that the power to make adjustments under Section 143(1) is limited to apparent arithmetical errors or incorrect claims that are obvious from the information in the return.</p>
</li>
<li>
<p data-path-to-node="6,1,1,1,0"><b data-path-to-node="6,1,1,1,0" data-index-in-node="0">Debatable Issues:</b> At the time the returns were processed, there were conflicting judgments from various High Courts regarding whether Section 43B (which allows payment up to the return filing date) applied to employees&#8217; contributions.</p>
</li>
<li>
<p data-path-to-node="6,1,1,2,0"><b data-path-to-node="6,1,1,2,0" data-index-in-node="0">Invalid Adjustment:</b> Since the issue was legally &#8220;debatable&#8221; before the <i data-path-to-node="6,1,1,2,0" data-index-in-node="71">Checkmate</i> decision, it could not be termed a &#8220;prima facie&#8221; or &#8220;patent&#8221; error. Therefore, the AO exceeded their jurisdiction by using the summary processing route to make a substantive legal disallowance. The addition was directed to be deleted regardless of the eventual merit of the PF/ESI payment.</p>
</li>
</ul>
</li>
</ul>
<hr data-path-to-node="7" />
<h3 data-path-to-node="8"><b data-path-to-node="8" data-index-in-node="0">Key Takeaways</b></h3>
<ul data-path-to-node="9">
<li>
<p data-path-to-node="9,0,0"><b data-path-to-node="9,0,0" data-index-in-node="0">Jurisdictional Shield:</b> This ruling is a vital defense for cases where the CPC (Centralized Processing Centre) has issued intimations disallowing PF/ESI contributions for older years. It affirms that the Department cannot use automated processing to settle complex legal disputes that require a scrutiny assessment.</p>
</li>
<li>
<p data-path-to-node="9,1,0"><b data-path-to-node="9,1,0" data-index-in-node="0">Checkmate vs. 143(1):</b> While the Supreme Court&#8217;s <i data-path-to-node="9,1,0" data-index-in-node="48">Checkmate</i> decision now makes late PF/ESI deposits taxable in scrutiny, it does not retrospectively validate a procedurally flawed adjustment made under Section 143(1) for past years.</p>
</li>
<li>
<p data-path-to-node="9,2,0"><b data-path-to-node="9,2,0" data-index-in-node="0">Audit Report Reliance:</b> Tax professionals should ensure that even if the Tax Audit Report (Form 3CD) mentions dates of deposit, the CPC cannot automatically convert those dates into a disallowance unless the law on the matter is unambiguous and non-debatable at the time of processing.</p>
</li>
<li>
<p data-path-to-node="9,3,0"><b data-path-to-node="9,3,0" data-index-in-node="0">Appeal Strategy:</b> For pending intimations under Section 143(1) involving this issue, practitioners should raise the jurisdictional objection that &#8220;summary adjustments cannot substitute scrutiny proceedings&#8221; for matters of legal interpretation.</p>
</li>
</ul>
<hr data-path-to-node="10" />
</div>
</div>
<div id="111070000000000011" style="text-align: center;">IN THE ITAT DELHI BENCH ‘B’</div>
<div id="" style="text-align: center;">R. K. &amp; Company Manpower (P.) Ltd.</div>
<div style="text-align: center;">v.</div>
<div id="" style="text-align: center;">DCIT<sup>*</sup></div>
<div id="dbs_judge" style="text-align: center;"><span id="111170000000010012">Challa Nagendra Prasad</span>, Judicial Member<br />
and <span id="111170000000043693">Renu Jauhri</span>, Accountant Member</div>
<div style="text-align: center;">IT Appeal Nos. 6600, 6601 &amp; 6602 (Delhi) of 2025<br />
[Assessment years 2018-19, 2019-20 and 2020-21]</div>
<div style="text-align: center;">APRIL  29, <span class="researchdochighlight">2026</span></div>
<div>
<div id="digest">
<div><b>Ms. Swati Talwar</b>, Adv.<i> for the Appellant. </i><b>Rajesh Kumar Dhanesta</b>, Sr. DR<i> for the Respondent.</i></div>
</div>
<div id="caseOrder">
<div>
<div>ORDER</div>
<div></div>
<div><b>Renu Jauhri, Accountant Member.-</b> The above captioned appeals in ITA Nos. 6600, 6601 &amp; 6602/Del/2025 are preferred by the assessees against the order dated 20.08.2025, passed by Ld. CIT(A)/Addl./JCIT(A)-1, Surat u/s 250 of the Income Tax Act, 1961 [hereinafter referred to as &#8220;the Act&#8221;] for A.Ys. 2018-19, 2019-20 &amp; 202021, respectively.</div>
<div><b>2. </b>The assessees has raised following grounds of appeal:</div>
<div><i>ITA No. 6600/Del/2025</i></div>
<div>&#8220;1. That on the facts and circumstances of the case, the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre &#8211; CIT (A), NFAC, (&#8220;Ld. CIT(A)&#8221;) dated 20.08.2025 (hereinafter referred to as &#8216;impugned appellate order&#8217;) is erroneous, arbitrary, without jurisdiction, illegal and bad in law.</div>
<div>2. That the Ld. CIT(A) has grossly erred in law and on facts of the case in confirming the order passed by Deputy Commissioner of Income Tax, Circle 19(1), Delhi (hereinafter referred to as &#8220;Ld. AO&#8221;) u/s 254 r.w.s. 143(1) of the Income Tax Act in case of the Appellant and making addition amounting to Rs.2,38,15,146/- on account of late deposit of on account of late deposit of Bonus and employees contribution towards PF/ESI.</div>
<div>3. That on the facts and circumstances of the case and in law, original intimation order passed by Ld. AO u/s 143(1) of the Income Tax Act making an adjustment of Rs.2,38,15,146/- dated 23.10.2019 in this case is bad in law, without jurisdiction, illegal and therefore the said intimation order is liable to be quashed.</div>
<div>4. That the Ld. AO and Ld. CIT(A) erred both in law and on facts in making disallowance on account of late deposit of Bonus and PF and ESI u/s 36(1)(va) to the tune of Rs.2,38,15,146/- at the time of processing of return u/s 143(1) even though this does not fall within the ambit of prima facie adjustment as per provisions of Section 143(1)(<i>a</i>) of the Income Tax Act. Therefore, such disallowance is beyond the scope of Section 143(1) and the Ld. AO should not have resorted to provisions of section 143(1).</div>
<div>5. The Ld. AO and CIT(A) erred both in law and on facts by not appreciating the fact that disallowance pertaining to late deposit Of employee&#8217;s contribution towards PF/ESI which is made before the due date of filing the ITR u/s 139(1) constituted a debatable issue at the time of processing of return and the adjustments u/s 143(1)(<i>a</i>) of Income Tax Act by way of intimation u/s 143(1) of Income Tax Act, on debatable and controversial issues, is beyond the scope of Section 143(1) of Income Tax Act.</div>
<div>6. That the Authorities below failed to consider/appreciate the submission of appellant made at various dates in response to their notice u/s. 250 of the Act and proceeded with confirming the impugned addition without considering the documentary evidence submitted and explanation given in support of assessee&#8217;s claim</div>
<div>7. That the Ld. C1T(A) grossly erred in placing reliance on amended provisions of Section 36(1)(va) and Section 43B as per Finance Act, 2021 by concluding that these amended provisions apply retrospectively for sustaining disallowance under section 36(1)(va) of Rs. Rs.2,38,15,146/- in the impugned AY.</div>
<div>8. The appellant is contractor and/or sub-contractor, providing Facility management &amp; manpower services mainly to various entities which are principal Employers, thus Primary liability is of Principal Employer under the respective PF &amp; ESI Act and not of Contractor/Sub-Contractor. Thus there should no applicability&#8217; of Sec 36(1)(va) on Contractor/Sub- Contractor.</div>
<div>9. Without prejudice to above grounds, disallowance made by the Ld. AO u/s 36(1)(va) r.w.s 43B for late deposit of employees contribution to ESI/pF for Rs. 2,38,15,146/- that has been deposited by the appellant before the due date for filing of return of income u/s 139(1) is allowable as business expense u/s 37 of the Income Tax Act as laid down by Hon&#8217;ble Supreme court (SC) in the case of Travancore Titanaium product ltd. 1966 AIR 1250.</div>
<div>10. That the Appellant denies liability towards interest charged u/s 234A, u/s 234B and u/s 234C and prays for appropriate relief. &#8220;</div>
<div><i>ITA No. 6601/Del/2025</i></div>
<div>&#8220;1. That on the facts and circumstances of the case, the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre &#8211; CIT (A), NFAC, (&#8220;Ld. CIT(A)&#8221;) dated 20.08.2025 (hereinafter referred to as &#8216;impugned appellate order&#8217;) is erroneous, arbitrary, without jurisdiction, illegal and bad in law.</div>
<div>2. That the Ld. CIT(A) has grossly erred in law and on facts of the case in confirming the order passed by Deputy Commissioner of Income Tax, Circle 19(1), Delhi (hereinafter referred to as &#8220;Ld. AO&#8221;) u/s 254 r.w.s. 143(1) of the Income Tax Act in case of the Appellant and making addition amounting to Rs.1,73,88,975/- on account of late deposit of on account of late deposit of Bonus and employees contribution towards PF/ESI.</div>
<div>3. That on the facts and circumstances of the case and in law, original intimation order passed by Ld. AO u/s 143(1) of the Income Tax Act making an adjustment of Rs. 1,73,88,975/- dated 27.12.2020 in this case is bad in law, without jurisdiction, illegal and therefore the said intimation order is liable to be quashed.</div>
<div>4. That the Ld. AO and Ld. CIT(A) erred both in law and on facts in making disallowance on account of late deposit of Bonus and PF and ESI u/s 36(1)(va) to the tune of Rs. 1,73,88,975/- at the time of processing of return u/s 143(1) even though this does not fall within the ambit of prima facie adjustment as per provisions of Section 143(1)(<i>a</i>) of the Income Tax Act. Therefore, such disallowance is beyond the scope of Section 143(1) and the Ld. AO should not have resorted to provisions of section 143(1).</div>
<div>5. The Ld. AO and CIT(A) erred both in law and on facts by not appreciating the fact that disallowance pertaining to late deposit Of employee&#8217;s contribution towards PF/ESI which is made before the due date of filing the ITR u/s 139(1) constituted a debatable issue at the time of processing of return and the adjustments u/s 143(1)(<i>a</i>) of Income Tax Act by way of intimation u/s 143(1) of Income Tax Act, on debatable and controversial issues, is beyond the scope of Section 143(1) of Income Tax Act.</div>
<div>6. That the Authorities below failed to consider/appreciate the submission of appellant made at various dates in response to their notice u/s. 250 of the Act and proceeded with confirming the impugned addition without considering the documentary evidence submitted and explanation given in support of assessee&#8217;s claim</div>
<div>7. That the Ld. C1T(A) grossly erred in placing reliance on amended provisions of Section 36(1)(va) and Section 43B as per Finance Act, 2021 by concluding that these amended provisions apply retrospectively for sustaining disallowance under section 36(1)(va) of Rs. Rs. 1,73,88,975/- in the impugned AY.</div>
<div>8. The appellant is contractor and/or sub-contractor, providing Facility management &amp; manpower services mainly to various entities which are principal Employers, thus Primary liability is of Principal Employer under the respective PF &amp; ESI Act and not of Contractor/Sub-Contractor. Thus there should no applicability&#8217; of Sec 36(1)(va) on Contractor/Sub- Contractor.</div>
<div>9. Without prejudice to above grounds, disallowance made by the Ld. AO u/s 36(1)(va) r.w.s 43B for late deposit of employees contribution to ESI/pF for Rs. 1,73,88,975/- that has been deposited by the appellant before the due date for filing of return of income u/s 139(1) is allowable as business expense u/s 37 of the Income Tax Act as laid down by Hon&#8217;ble Supreme court (SC) in the case of Travancore Titanaium product ltd. 1966 AIR 1250.</div>
<div>10. That the Appellant denies liability towards interest charged u/s 234A, u/s 234B and u/s 234C and prays for appropriate relief. &#8220;</div>
<div><i>ITA No. 6602/Del/2025</i></div>
<div>&#8220;1. That on the facts and circumstances of the case, the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre &#8211; CIT (A), NFAC, (&#8220;Ld. CIT(A)&#8221;) dated 20.08.2025 (hereinafter referred to as &#8216;impugned appellate order&#8217;) is erroneous, arbitrary, without jurisdiction, illegal and bad in law.</div>
<div>2. That the Ld. CIT(A) has grossly erred in law and on facts of the case in confirming the order passed by Deputy Commissioner of Income Tax, Circle 19(1), Delhi (hereinafter referred to as &#8220;Ld. AO&#8221;) u/s 254 r.w.s. 143(1) of the Income Tax Act in case of the Appellant and making addition amounting to Rs.1,33,47,818/- on account of late deposit of on account of late deposit of Bonus and employees contribution towards PF/ESI.</div>
<div>3. That on the facts and circumstances of the case and in law, original intimation order passed by Ld. AO u/s 143(1) of the Income Tax Act making an adjustment of Rs. 1,33,47,818/- dated 18.12.2021 in this case is bad in law, without jurisdiction, illegal and therefore the said intimation order is liable to be quashed.</div>
<div>4. That the Ld. AO and Ld. CIT(A) erred both in law and on facts in making disallowance on account of late deposit of Bonus and PF and ESI u/s 36(1)(va) to the tune of Rs.1,33,47,818/- at the time of processing of return u/s 143(1) even though this does not fall within the ambit of prima facie adjustment as per provisions of Section 143(1)(<i>a</i>) of the Income Tax Act. Therefore, such disallowance is beyond the scope of Section 143(1) and the Ld. AO should not have resorted to provisions of section 143(1).</div>
<div>5. The Ld. AO and CIT(A) erred both in law and on facts by not appreciating the fact that disallowance pertaining to late deposit Of employee&#8217;s contribution towards PF/ESI which is made before the due date of filing the ITR u/s 139(1) constituted a debatable issue at the time of processing of return and the adjustments u/s 143(1)(<i>a</i>) of Income Tax Act by way of intimation u/s 143(1) of Income Tax Act, on debatable and controversial issues, is beyond the scope of Section 143(1) of Income Tax Act.</div>
<div>6. That the Authorities below failed to consider/appreciate the submission of appellant made at various dates in response to their notice u/s. 250 of the Act and proceeded with confirming the impugned addition without considering the documentary evidence submitted and explanation given in support of assessee&#8217;s claim</div>
<div>7. That the Ld. C1T(A) grossly erred in placing reliance on amended provisions of Section 36(1)(va) and Section 43B as per Finance Act, 2021 by concluding that these amended provisions apply retrospectively for sustaining disallowance under section 36(1)(va) of Rs. Rs.1,33,47,818/- in the impugned AY.</div>
<div>8. The appellant is contractor and/or sub-contractor, providing Facility management &amp; manpower services mainly to various entities which are principal Employers, thus Primary liability is of Principal Employer under the respective PF &amp; ESI Act and not of Contractor/Sub-Contractor. Thus there should no applicability&#8217; of Sec 36(1)(va) on Contractor/Sub- Contractor.</div>
<div>9. Without prejudice to above grounds, disallowance made by the Ld. AO u/s 36(1)(va) r.w.s 43B for late deposit of employees contribution to ESI/pF for Rs. 1,33,47,818/- that has been deposited by the appellant before the due date for filing of return of income u/s 139(1) is allowable as business expense u/s 37 of the Income Tax Act as laid down by Hon&#8217;ble Supreme court (SC) in the case of Travancore Titanaium product ltd. 1966 AIR 1250.</div>
<div>10. That the Appellant denies liability towards interest charged u/s 234A, u/s 234B and u/s 234C and prays for appropriate relief. &#8220;</div>
<div><b>3. </b>As common issues are involved in all the three appeals. ITA No. 6600/Del/2025 for A.Y. 2018-19 is taken up as the lead case.</div>
<div><b>3.1</b> Brief facts are that the assessee company filed its return for A.Y. 2018-19 on 31.10.2018 declaring income of Rs.1,35,79,360/-. The case was processed u/s 143(1) vide intimation order dated 23.10.2019 wherein addition of Rs.2,55,73,010/- was made in respect of late deposit of employees contribution to PF/ESIC. Aggrieved the assessee filed an appeal before ld. CIT(A) which was party allowed vide order dated 31.10.2022 as under:</div>
<table class="allborder" width="100%">
<tbody>
<tr>
<td valign="top">S.No.</td>
<td valign="top">Amount in Dispute before CIT (Appeals)</td>
<td valign="top">Allowed by CIT(Appeals)</td>
<td valign="top">Disallowed</td>
<td valign="top">Reason</td>
</tr>
<tr>
<td valign="top">1</td>
<td valign="top">23815146</td>
<td valign="top">0</td>
<td valign="top">23815146</td>
<td valign="top">Late Deposit of PF ESIC</td>
</tr>
<tr>
<td valign="top">2</td>
<td valign="top">1743407</td>
<td valign="top">1255524</td>
<td valign="top">487883</td>
<td valign="top">Payment of Bonus</td>
</tr>
</tbody>
</table>
<p>&nbsp;</p>
<div>Further aggrieved, the assessee preferred an appeal before the ITAT only in respect of the issue relating to late deposit of PF/ESIC amounting to Rs.2,388,15,146/- vide order dated 29.11.2023, the co-ordinate bench allowed the assessee&#8217;s appeal for statistical purposes and issued direction to the ld. AO as under:</div>
<div>&#8220;Before us, it is the specific contention of the assessee that due date, as per section 36(1)(va) of the Act, should be the date on which salary was actually disbursed to the employees and not the date on which salary was due. In this context, learned counsel has relied upon following judicial precedents:</div>
<table class="list">
<tbody>
<tr>
<td class="list" align="right" valign="top">i.</td>
<td class="list" align="justify" valign="top"></td>
<td class="list" align="justify" valign="top">Rakesh Janghu, ITA No. 2675/Del/2022, dated 09.10.2023</td>
</tr>
</tbody>
</table>
<table class="list">
<tbody>
<tr>
<td class="list" align="right" valign="top">ii.</td>
<td class="list" align="justify" valign="top"></td>
<td class="list" align="justify" valign="top"><i>Prime</i> Comfort Products Pvt. Ltd. v. <i>ACIT, ITA No. </i>530/Dei/2023, dated 26.04.2023.</td>
</tr>
</tbody>
</table>
<div>No doubt, the issue whether the delayed payment of employees&#8217; contribution to PF and ESI is allowable as deduction is no more res Integra in view of the ratio laid down by the Hon&#8217;ble Supreme Court in case of Checkmate Services P. Ltd. (<i>supra</i>). However, it is the specific plea of the assessee before us that the due date as provided under section 36(1)(va) of the Act should be construed from the date on which salary was actually disbursed to the employees and not the date on which salary was due. In our view, the aforesaid contention of the assessee merits consideration.</div>
<div>We have further observed, while considering similar pleadings made by the assessee, the Coordinate Benches have restored the issue to the Assessing Officer for consideration in the light of judicial precedents. Following the judicial precedents cited before us, we restore this issue to the file of the Assessing Officer for de novo adjudication after providing due and reasonable opportunity of being heard to the assessee and further, the Assessing Officer must pass a well-reasoned order after considering the submissions of the assessee and the ratio laid down in the decisions to be cited before him. Grounds are allowed for statistical purposes.</div>
<div>In the result, appeals are allowed for statistical purposes.</div>
<div><b>3.2</b> In pursuance of decision of the co-ordinate bench, the AO issued a notice to the assessee and passed the order on 21.03.2025 holding as under:</div>
<div>&#8220;5.1 The assessee has not filed any explanation and documentary evidence in response to the show cause notice. In view of non-responsiveness of the assessee and in view of the detailed discussion made in the show cause notice, it is held that as per provisions of section 36(1)(va) of the Income Tax Act read with the provisions of the ESI ct, it is clear that the due date for deposit of the employee&#8217;s contribution is to be calculated from the date on which salary was due to the employee not the date on which the salary was actually disbursed. Accordingly, addition of Rs.2,38,15,146/- as made in the order u/s 143(1) is found to be correct and the same is added back to the total income of the assessee.&#8221;</div>
<div>[Addition of Rs.2,38,15,146/-]</div>
<div><b>3.3</b> Aggrieved the assessee filed appeal before ld. CIT(A). Vide order dated 20.08.2025, ld. CIT(A) dismissed the assessee appeal. Further aggrieved, the assessee is in appeal before the Tribunal.</div>
<div><b>4. </b>Before us, ld. AR has submitted that the lower authorities have mainly relied on the decision of the Hon&#8217;ble Apex Court in the case of <i>Checkmate Services (P.) Ltd. </i>v. <i>CIT </i>(SC) which is misplaced considering the facts of the case. He has argued that the impugned addition has been made u/s 143(1) when such an adjustment is clearly outside the scope of adjustments envisaged under the section. Further ld. AR has placed reliance on multiple decisions of the co-ordinate benches wherein on similar facts and circumstances disallowance made u/s 143(1) in respect of late deposit of employees&#8217; contribution to PF/ESI has been deleted especially in cases pertaining to the assessment years prior to the decision of the Hon&#8217;ble Supreme Court in the case of Checkmate Services (<i>supra</i>). Some of the decisions relied upon by the ld. DR are as under:</div>
<table class="list">
<tbody>
<tr>
<td class="list" align="right" valign="top">1)<i>Rajesh</i></td>
<td class="list" align="justify" valign="top"></td>
<td class="list" align="justify" valign="top">Kumar Garg v. <i>ACIT</i> [IT Appeal No. 970 (Del) of 2025, dated 22-8-2025]</td>
</tr>
</tbody>
</table>
<table class="list">
<tbody>
<tr>
<td class="list" align="right" valign="top">2)</td>
<td class="list" align="justify" valign="top"></td>
<td class="list" align="justify" valign="top"><i>Dondapati Sudhakara Rao</i> v. <i>DCIT</i> [IT Appeal No. 701 (Hyd) of 2025, dated 20-8-2025]</td>
</tr>
</tbody>
</table>
<table class="list">
<tbody>
<tr>
<td class="list" align="right" valign="top">3)</td>
<td class="list" align="justify" valign="top"></td>
<td class="list" align="justify" valign="top"><i>Tinna Rubber and Infrastructure Ltd. </i>v. <i>DCIT</i> [IT Appeal Nos. 816 &amp; 817 (Del) of 2025, dated 31-7-2025]</td>
</tr>
</tbody>
</table>
<table class="list">
<tbody>
<tr>
<td class="list" align="right" valign="top">4)<i>Ranbir</i></td>
<td class="list" align="justify" valign="top"></td>
<td class="list" align="justify" valign="top">Singh Sorout v. <i>ITO</i> [IT Appeal Nos. 52 to 54 (Del) of 2023, dated 20-8-2025]</td>
</tr>
</tbody>
</table>
<table class="list">
<tbody>
<tr>
<td class="list" align="right" valign="top">5)<i>A2Z</i></td>
<td class="list" align="justify" valign="top"></td>
<td class="list" align="justify" valign="top">Infra Services Ltd. v. <i>Dy. CIT </i>(Delhi &#8211; Trib.)/ITA No. 970/Del/2023 order dated 16.06.2025</td>
</tr>
</tbody>
</table>
<div><b>5. </b>On the other hand, ld. DR has also filed his written submissions wherein reliance has been placed on the decisions of the Hon&#8217;ble Supreme Court in <i>Checkmate Services (P.) Ltd. </i>(<i>supra</i>).</div>
<div><b>6. </b>We have heard the rival submissions and perused the material on record as well as the relevant judicial pronouncements. Admittedly, the additions u/s 143(1) have been made in the Assessment Year prior to the decision of the Hon&#8217;ble Apex Court. We are, therefore, of the considered view that the impugned addition was outside the scope of adjustments permissible u/s 143(1) of the Act. Accordingly, respectfully following the decisions of the co-ordinate benches cited hereinbefore, we delete the addition of Rs.2,38,15,146/-u/s 36(1)(va) of the Act. The appeal of the assessee is hereby allowed.</div>
<div><b>7. </b>As identical issues are involved in ITA Nos. 6601/Del/2025 (for A.Y. 2019-20) and ITA No. 6602/Del/2025 (for A.Y. 202021), the above decision shall apply mutatis mutandis in these appeals also.</div>
<div><b>8. </b>In the result, all the three appeals are hereby allowed.</div>
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