9911796707
TMI Blog2022 (7) TMI 1528X X X X Extracts X X X X X X X X Extracts X X X X ..... osures of various information/details relating to an assessee such as the nature business/profession, books of accounts maintained etc. Further, not all clauses of Form 3CD require the tax auditor to express an opinion. Some of the clauses require the tax auditor to just provide information/details. Clause 20(b) of Form 3CD falls in this category. The tax auditor is merely required to provide Details of contributions received from employees for various funds as referred to in section 36(1)(va) . This becomes clear on examining other clauses which specifically require the tax auditor to express an opinion, such as Clause 21(b) requiring disclosure of amounts inadmissible u/s 40(a), Clause 21(d) requiring disclosure of amounts inadmissible un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y allowed the appeal filed by the Appellant/Assessee against the intimation/order, dated 16.11.2019, issued/passed by Deputy Commissioner of Income Tax, CPC under Section 143(1) of the Act. 2. The Appellant has raised Ground No. 1(a) to (c), all directed against the disallowance of INR 19,57,906/- made under Section 36(1)(va) of the Act in respect of employees contribution to Employees State Insurance Corporation (ESIC) and Provident Fund (PF) deposited after the due date specified in the applicable statute but before the due date of filing income tax return prescribed under Section 139(1) of the Act. 3. The brief facts are that the Appellant filed its return of income for the Assessment Year 2018-19 on 31.10.2018, declaring total loss of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment Year 2021-22, and therefore, the CIT (A) has erred in confirming the disallowance by placing reliance on the same. He specifically placed reliance on the decision of the Tribunal in the case of Kalpesh Synthetics Pvt. Ltd., vs. DCIT, CPC, Bangalore: 137 taxmann.com 475. 7. The Ld. Departmental Representative submitted that Circular 22 of 2015 issued by the Central Board of Direct Taxes clearly states that employee's contribution to welfare funds are governed by Section 36(l)(va) of the Act. Further, the amendments to Section 36(l)(va) made vide Finance Act 2021 are to be applied retrospectively, as the same are curative/declaratory in nature. He relied upon the order passed by the CIT (A) to support the aforesaid disallowance of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution to ESIC and PF fell outside the scope of Section 143(1)(a)(iv) of the Act. Section 143(1)(a)(iv) provides for adjustment in the return of income filed by an assessee in case a disallowance of expenditure is indicated in the audit report but had not taken into account in computing the total income in the return. A perusal of Form 3CD, the form prescribed for filing tax audit report, would show that the tax auditor is not just required to identify and provide details of disallowance of expenditure. Form 3CD also provides for disclosures of various information/details relating to an assessee such as the nature business/profession, books of accounts maintained etc. Further, not all clauses of Form 3CD require the tax auditor to express an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
