ITAT Reopens the Scope of Section 143(1) for PF and ESI Disallowance

VCO Consultants and Services challenged the disallowance of employees’ PF and ESI contributions deposited after the statutory due dates but before the income-tax return filing deadline. The ITAT condoned the delay in filing the appeal, subject to costs already paid, and remanded the matter to the CIT(A) to examine whether the adjustment was permissible under Section 143(1) when the return was processed in July 2020. The Tribunal did not decide the substantive deductibility issue.