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TMI Blog2023 (4) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... clause (ii) of section 143(1) which says that incorrect claim, if such incorrect claim is apparent from any information in the return, it needs to be adjusted while computing income u/s. 143(1)(a) of the Act. Therefore, we reject the argument of the assessee. Disallowance of deduction u/s. 80JJAA - return is filed beyond the due date of filing return of income u/s. 139(1) - HELD THAT:- As up to assessment year 2020-21, there is no provisions u/s. 143(1)(a) of the Act to make any adjustments towards Chapter VI-A deductions while processing return of income u/s. 143(1)(a) of the Act. Therefore, we are of the considered view that even if assessee does not file return of income on or before due date prescribed u/s. 139(1) then no adjustment can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 48 234C for 2018- 19 a/y on the following grounds: 1. The CIT(A) erred in upholding the legality of the intimation u/s 143(1) making 'adjustments' to the Total income, which is against Law and the facts of the case. 2.1 The CIT(A) failed to appreciate that the 'adjustment' (disallowance) ESI, Rs.25884 EPF Rs.161814, totaling to Rs.187698, u/s 143(1)(a)(iv) is illegal and beyond powers conferred on CPC under clause 8 of the Central Processing of Returns Scheme, 2011, formulated uls 143(1A). 2.2 The 'adjustment (disallowance) of ESI, Rs.17803 EPF Rs.175776, totaling to Rs.193579 denial of deduction of Rs.426197 u/s 80JJAA, could not have been made u/s 143(1)(a)(iv) (ii), respectively, as held by the Madras Tribunal in Tang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he levy of additional tax, surcharge and cess are all bad in Law. 5. The interests charged u/s 234A; 2348 234C require re-computation consequent to the above. On these grounds and on such other grounds as may be put forth at the time of hearing, the appellant prays that: i) 'adjustments' u/s 143(1)(a)(ii) by way of a. Disallowance of ESI Rs.25884 u/s 36 b. Disallowance of EPF Rs.161814 u/s 36 Be deleted; ii) Disallowance of Deduction of Rs.426197 u/s 80JJAA be deleted; iii) Additional tax, surcharge and cess levied on account of the above disallowances be deleted; iv) Interests u/s 234A; 2348 234C be recomputed 3. The brief facts of the case are that, the appellant is an individual and engaged in the business of Physiotherapy and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cedure laid down by the CBDT for processing return of income. He, further submitted that the disallowance made by the AO towards PF ESI is neither expenditure debited into P L account nor in income as prescribed under sub clause (iv) of section 143(1)(a) of the Act and thus, the question of disallowance does not arise. 5. The Ld. DR, on the other hand supporting the order of the CIT(A) submitted that, the issue is squarely covered in favour of the revenue by the decision of the Hon ble Supreme Court in the case of Checkmate Services P Ltd vs CIT [2023] 290 Taxman 19 (SC), where it has been held that belated payment of employees contribution to PF ESI cannot be allowed as deduction u/s. 36(1)(va) r.w.s. 2(24)(x) and 43B of the Act. 6. We hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of revenue] 7. In so far as the arguments of the assessee that disallowance made by the AO towards PF ESI is neither expenditure debited into P L account nor in the nature of income as prescribed under sub clause (iv) of section 143(1) of the Act and thus, it cannot be disallowed u/s. 143(1)(a) of the Act, we find that, when tax auditor reported belated remittances of contribution to respective funds on or before due date prescribed under said laws, then it is the duty of the assessee to take note of such observations and compute its income in accordance with law. Since, the deduction claimed by the assessee towards belated remittance of PF ESI is contrary to provisions of section 36(1)(va) r.w.s. 2(24)(x) and 43B of the Act, in our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has filed return of income beyond due date prescribed u/s. 139(1) of the Act, the AO has rightly disallowed said claim and their order should be upheld. 11. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. There is no dispute with regard to the fact that the assessee has filed return of income beyond due date prescribed u/s. 139(1) of the Act. As per provisions of section 80AC of the Act, if return of income is not filed on or before due date prescribed u/s. 139(1) of the Act, then deduction provided under Chapter VI A-C cannot be allowed. But if you go by provisions of section 143(1)(a) of the Act, sub clause (v) has been amended by the Finance Act, 2021 w.e.f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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