ITAT Pune Grants Relief to Security Agency: Delay Condoned & Case Remanded for Fresh Consideration
ITAT Pune Grants Relief to Security Agency : Delay Condoned & Case Remanded for Fresh Consideration
In a recent order dated 29th October 2025, the Income Tax Appellate Tribunal (ITAT), Pune Bench (SMC) delivered a significant judgment in favour of Mr. Yetchina Srinivas, proprietor of a security agency based in Chhattisgarh, providing relief by condoning the delay in appeal filing and directing a fresh adjudication of disallowed claims related to EPF, ESI and Section 80C deductions.
Case Background
The assessee, engaged in security services, had filed an appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, which upheld certain disallowances made by the Assessing Officer (AO) for Assessment Year 2018–19. The AO had disallowed:
- ESI expenses: ₹3,18,459
- Section 80C deduction: ₹1,50,000
These additions were made due to incomplete submission of documents and discrepancies found in contribution amounts. However, the appeal before the Tribunal was delayed by 100 days primarily due to wrong professional advice and the assessee’s relocation from Delhi to Pune.
Delay Condoned in Interest of Justice
The Hon’ble Tribunal, presided by Dr. Manish Borad (Accountant Member), accepted the assessee’s affidavit explaining the reasons for delay. Referring to the landmark judgment in Collector, Land Acquisition, Anantnag & Anr. vs. Mst. Katiji & Ors. (1987) 2 SCC 107, the Tribunal held that the delay was caused by “reasonable circumstances” and that justice should prevail over procedural technicalities.
Hence, the delay was condoned and the appeal was admitted for adjudication.
Key Issues Before the Tribunal
In a recent order dated 29th October 2025, the Income Tax Appellate Tribunal (ITAT), Pune Bench (SMC) delivered a significant judgment in favour of Mr. Yetchina Srinivas, proprietor of a security agency based in Chhattisgarh, providing relief by condoning the delay in appeal filing and directing a fresh adjudication of disallowed claims related to EPF, ESI and Section 80C deductions.
1. Disallowance of EPF and ESI Contributions:
The AO found that the contributions made exceeded the permissible limits as per DGR norms. However, due to the COVID-19 restrictions and the assessee’s health issues, the supporting records could not be produced in time.
2. Deduction under Section 80C:
The assessee’s claim for ₹1.5 lakh under Section 80C was disallowed due to lack of documentation, though the CIT(A) had directed partial verification.
Tribunal’s Observations
The Tribunal noted that:
- Major parts of the assessment proceedings occurred during the COVID-19 pandemic, when normal operations were disrupted.
- The assessee faced genuine difficulty in furnishing documentation due to ill health and logistical constraints.
- The CIT(A) had already indicated that cross-verification of documents was necessary for fair assessment.
Verdict: Case Remanded for Fresh Adjudication
In the interest of natural justice, the ITAT remanded the case back to the Jurisdictional Assessing Officer (JAO) for denovo adjudication. The Tribunal directed:
- The AO to provide reasonable opportunity to the assessee to present additional evidence.
- The assessee to remain vigilant and cooperative during the proceedings.
Thus, the appeal was allowed for statistical purposes, ensuring that the taxpayer receives a fair opportunity to substantiate his claims.
Significance of the Case
This order reaffirms that procedural lapses should not override substantive justice — especially when genuine hardships prevent timely compliance. The ITAT’s approach demonstrates empathy and judicial balance, recognizing both administrative constraints and the taxpayer’s right to be heard.
For professionals and taxpayers alike, the case highlights:
- The importance of accurate documentation and professional guidance,
- The flexibility of appellate authorities in condoning genuine delays, and
- The judicial inclination towards fair and equitable treatment under the Income Tax Act.
Conclusion
At Sachin P. Kumar & Associates, we take pride in representing clients across complex taxation matters from procedural appeals to ITAT cases. Our approach focuses on compliance, transparency and protecting our clients’ rights at every stage of tax proceedings.
This case stands as yet another example of our commitment to ensuring justice through precision and proactive representation.