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2022 (4) TMI 907 - AT - Income TaxReopening of assessment u/s 147 - TDS u/s 194J - adjustment of adding 50% presumptive income u/s 44ADA on manpower supply turnover - whether the CPC u/s. 143(1)(a) of the Act can make any adjustment/addition in the aforesaid facts and circumstances? - HELD THAT:- According to us, the CPC could not have made the adjustment since the question of fact arises on the factual matrix of this case as noted above. The assessee’s contention is that the amount of ₹ 31,21,167/- is included in the turnover of ₹ 52,81,344/-. Therefore, merely based on TDS entries given in Form 26AS for deduction of tax u/s. 194J, the adjustment could not have been made without conducting any enquiry, more particularly when the man power supply is not covered as a profession within the meaning of section 44AA of the Act read with relevant notifications. We find force in the contention of the Ld. AR that this particular issue could not have been decided by the CPC u/s. 143(1)(a) of the Act. In case, if the department finds that there is an anomaly, then it has liberty to do so by conducting scrutiny assessment under the provisions of law or to re-open the assessment u/s. 147 of the Act. Thus, we find that CPC had no jurisdiction to make impugned adjustment within the meaning of section 143(1)(a) of the Act. Accordingly, the adjustment made by the CPC stands deleted. Appeal of assessee allowed.
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