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2022 (6) TMI 399 - AT - Income TaxAddition u/s. 36(1)(va) - Delayed employees' contribution to ESI/Provident Fund were deposited by the assessee after the specified date prescribed under the relevant laws governing ESI and Provident Fund - adjustments and intimation u/s. 143(1) - debatable and controversial issues - HELD THAT:- Payments by way of employees contribution to provident fund and ESI were made by the assessee after stipulated date prescribed under the relevant laws governing provident fund and ESI, but before the due date of filing of return of income prescribed u/s. 139(1) of Income Tax Act; is not in dispute. Whether the aforesaid amendments to Income Tax Act by way of Finance Act, 2021 are retrospective or prospective, is debatable and controversial. Adjustments made by Revenue u/s. 143(1) of Income Tax Act, whereby aforesaid additions were made, were unfair, unjust and bad in law. Addition by way of adjustment and intimation u/s. 143(1) of Income Tax Act on debatable and controversial issues is beyond the scope of Section 143(1) of Income Tax Act. Revenue was clearly in error in making the aforesaid adjustments.Addition by way of adjustment and intimation u/s. 143(1) of Income Tax Act, on the basis of retrospective amendment to Income Tax Act is beyond the scope of Section 143(1) of Income Tax Act. In the present appeal before us, addition of aforesaid amount of Rs. 8,28,211/- has been made by way of adjustments and intimation u/s. 143(1) of Income Tax Act, on a debatable and controversial issue, and Ld. CIT(A) did err in law, in not deleting this addition. Additions by way of adjustment and intimation u/s. 143 were beyond the scope of Section 143(1) of Income Tax Act; and further, that the Ld. CIT(A) erred in law in confirming the aforesaid addition on a debatable and controversial issue.
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