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TMI Blog2022 (9) TMI 1516X X X X Extracts X X X X X X X X Extracts X X X X ..... has to be remitted on or before the due date as prescribed under the respective statutes and not after that for making a claim. We dismiss the claim of the assessee. Disallowing the inconsistency in total amount claimed u/s. 37 - difference in reporting in ITR and claimed in Form No.3CD - HELD THAT:- The assessee has made a disallowance under the provisions of s. 37 of the Act, because there is no specific clause in tax audit report to report the amount to be considered for disallowance u/s. 40(a)(ii) of the Act. We find that there is some problem in the tax audit form or in the processing of return through CPC. But, in any case from the facts it is clear that these amounts are already disallowed by the assessee and nothing more is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e first issue in this appeal of assessee is as regards to the order of CIT(A) confirming the action of the A.O in disallowing the claim of deduction of ESI and PF claimed u/s. 36(1)(va) of the Act. 3. We have heard the rival contentions and gone through the facts and circumstances of the case. We noted that the assessee has remitted the employees contribution to PF and ESI amounting to Rs. 5,15,978/- after the due date as prescribed under the respective statutes i.e., Provident Fund Act and ESI Act. The A.O while processing return u/s. 143(1) of the Act made a disallowance. The CIT(A) also confirmed the disallowance. Aggrieved, the assessee is in further appeal before the Tribunal. 4. Admittedly, the assessee has made these payments b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. The Ld. counsel for the assessee explained the entire particulars as under: Particulars Financial statement reference Amount (in INR) Treatment in ITR Disclosure in TAR Gratuity provision created in FY 2017-18 (disclosed as employee benefit expense in statement of profit and loss account) Note 19 in page No. 13 of financial statement, page No. 90 of the paperbook 9,626,816 Disallowed in ITR under SI, No. 9(c) (Refer page No. 30 of the ITR, page No. 30 of the paperbook) pertaining to disallowance of gratuity provision under section 40A(7)(a) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. Even the Ld. counsel for the assessee stated that nothing has been disallowed while completing the scrutiny assessment u/s. 143(3) of the Act by the A.O vide order dated 27.08.2021, which is enclosed in assessee s paper book at Page Nos.77 to 79. 8. On the other hand, the Ld. Sr. A.R filed his objections, which are reproduced as it is as under: The counsel for the assessee has, during the hearing, projected a picture that the Departmental return processing system (CPC) has committed a grave error by not adhering to the law by carrying out un-wanted adjustments to the companies returned income while processing its return. Also the Commissioner of Income tax (Appeal) has also erred in upholding such actions of the CPC. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 143(l)(a)(ii) forgetting of the fact that under the law, the tax audit report is a subset of a return and any return without accompanied by the tax audit report is subject to be treated as invalid return u/s 139(9) of Income Tax Act-1961 read with Rule-12 of the Income Tax Rules-1962. Hence, Department submits that such appeal should not be entertained and taxpayers made responsible and pay for their deeds of omissions and commissions. At the most, the assessee should have filed a mercy plea before the CBDT u/s 119(2)(b) accepting its mistake and seeking a relief instead of pointed out fingers on the Departmental applications and e-governance process implemented for betterment and ease of business of general law abiding public. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 42,36,722/- being payment made for gratuity to the employees during the year as per s. 40A(7) r/w s. 37 of the Act and the same was disclosed at Sr. No.10B of the ITR i.e., Page No.30 of ITR u/s. 43B of the Act in the absence of specific field for disclosure in the ITR. It was claimed that the payment made for gratuity during the A.Y 2017-18 was not disclosed in the tax audit report in the clause for reporting as per s. 43B of the Act. We are of the view that this position led to inconsistency in the column as per ITR and the tax audit report that the amount disallowed u/s. 43B of the Act in any preceding previous year, but allowable during the previous year. The assessee also submitted that the additional evidence before us along with su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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