9911796707
TMI Blog2024 (7) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... scrutiny and after confronting the assessee, the AO would have decided this issue but in our understanding in a proceeding u/s 143(1), such disallowance cannot be made. AO has nowhere examined the order of the Pollution Control Board asking the assessee to make the payment. Every payment made by the assessee would not be in penal in nature, therefore, disallowance is not sustainable. We allow this ground of appeal and delete the disallowance. - Shri Rajpal Yadav, Vice-President (KZ) And Shri Rajesh Kumar, Accountant Member For the Assessee : Shri B.K. Chaturvedi, Advocate For the Revenue : Shri B.K. Singh, JCIT, Sr. D.R. ORDER PER RAJPAL YADAV, VICE-PRESIDENT (KZ):- The present appeal is directed at the instance of assessee against the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, the appellant has contended that the order passed by the CPC is illegal and bad in law. 3.1. In this regard, the question arises whether adjustments can be made by the CPC under section 143(1)(a) of the Act while processing the return filed by the assessee wherein an incorrect claim is apparent from any information in the return or not. The Memorandum of Finance Bill 2008 and Finance Bill, 2016 are being reproduced as it is:- 3.2. Memorandum to Finance Bill, 2008 Correction of arithmetical mistakes and adjustment of incorrect claim under section 143(1) through Centralised Processing of Returns. Generally, tax administrations across countries adopt a two-stage procedure of assessment as part of risk management strategy. In the first stag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n entry, in the return,- (a) of an item, which is inconsistent with another entry of the same or some other item in such return; (b) in respect of which, information required to be furnished to substantiate such entry, has not been furnished under this Act; or (c) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction. Further, these adjustments will be made only in the course of computerized processing without any human interface. In other words, the software will be designed to detect arithmetical inaccuracies and internal inconsistencies and make appropriate adjustments in the computation of the total income. 3.3. Further, in Me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputed after making adjustments inter-alia on account of incorrect claim, if such incorrect claim is apparent from any information in the return of income. 3.5. In this regard, the reliance placed by the appellant on the judgment of Kvaerner John Brown Engg. (India) P. Ltd. and Modern Fibotex India were examined and it was found that the matter has been settled recently by the Finance Act, 2016, wherein the scope of adjustments was widened and enlarged. 3.6. In the present case, the adjustment u/s. 143(1)(a) has been made on the basis of incorrect claim which is apparent from information in the return of as provided by appellant. 6. The solitary issue before us is that whether this payment is compensatory or penal in nature, is a question, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
