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TMI Blog2022 (7) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was sent to the assessee on 21/2/2019. We find that indication was made in form number 3CD but disallowance was not made in the computation of total income. The assessee submitted its response on 02/05/2019 , wherein it was stated that that the issue is covered in favour of the assessee by the decision of the honourable jurisdictional High Court and such payments are allowable if same are paid on or before the due date prescribed of filing of the return of income. Assessee also objected that in form number 3CD only information was provided about payment of provident fund and other Funds and therefore that clause cannot be an item of prima facie adjustment. We find that though there is an inconsistency in the details submitted in form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO) dated 22/9/2019 wherein a disallowance of Rs.792,353/ was made u/s 143 (1) of the act with respect to the sum received from employees contribution to provident fund or superannuation fund, was dismissed. 02. Assessee has raised following grounds of appeal 1. Learned Commissioner of Income Tax (Appeals) erred in confirming the adjustment made to Total Income of the Appellant us 143(1)(a)(iv) of the Act in the Intimation passed u/s 143(1) of the Act by Learned Centralized Processing Centre, Income Tax Department to the tune of Rs. 7,92,353/- being alleged belated payment of Employees contribution to PF ESIC as the payments were made beyond the due date as specified in the respective PF ESIC Act. Appellant submits that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act by Learned Centralized Processing Centre, Income Tax Department to the tune of Rs. 7,92,353/- by relying on Explanation 2 to Section 36(1) (va) of the Act introduced by Finance Act, 2021 w.e.f 01.04.2021 wherein it is stated that Explanation 2.-For the removal of doubts, it is hereby clarified that the provisions of section 43B shall not apply and shall be deemed never to have been applied for the purposes of determining the due date under this clause Appellant submits that, the above amendment by way of insertion of Explanation 2 to Section 36(1)(va) of the Act is prospective in nature and hence does not apply to AY 2017-18. Appellant submits that in view of the facts and circumstances of the case as well as in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a total income of Rs 1,00,84,975/ . 04. The central processing Centre proposed to the adjustment u/s 143 (1) (a) of the income tax act as per communication dated 21 February 2019 that sum received from employees contribution to the extent not credited to the employees account on or before the due dates as specified in the respective law is disallowable. The assessee submitted its response on 7 March 2019. Learned AO process the return on 15 April 2019 making the above adjustment/addition of Rs.792,353/ . 05. Assessee preferred appeal before the learned CIT A. The order was passed on 31/H 2021 where the appeal filed by the assessee was rejected for following reasons:- i. according to the provisions of the income tax act as contai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred to the decision of coordinate benches placed at serial number 11 of the paper book. He also referred to the response submitted by the assessee before central processing Centre. 07. The learned departmental representative supported the orders of the learned lower authorities. 08. We have carefully considered the rival contentions and perused the orders of the lower authorities. We find that the adjustment has been made by the central processing Centre u/s 143 (1) of the act. Identical issue has been dealt with by the coordinate bench in case of Kalpesh Synthetcis P Limited V DCIT [2022] 137 taxmann.com 475 (Mumbai - Trib.)[27- 04-2022] and held that a. The adjustments under section 143(1)(a)(iv) in respect of disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justment u/s 143 (1) (iv) stating that disallowance of expenditure is indicated in the audit report but is not taken into account in computing the total income in the return. Such intimation was sent to the assessee on 21/2/2019. We find that indication was made in form number 3CD but disallowance was not made in the computation of total income. The assessee submitted its response on 02/05/2019 , wherein it was stated that that the issue is covered in favour of the assessee by the decision of the honourable jurisdictional High Court and such payments are allowable if same are paid on or before the due date prescribed of filing of the return of income. Assessee also objected that in form number 3CD only information was provided about payment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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