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2022 (8) TMI 1135 - AT - Income TaxDelayed employees’ contribution to ESI/Provident Fund - adjustment and intimation u/s 143(1) - payments were deposited by the respective assessees well before the date of filing of return of Income Tax prescribed under section 139(1) - whether, the aforesaid additions by way of adjustments and intimation u/s 143(1) of Income Tax Act in respect of payments of Employee’s contribution to ESI/Provident Fund, made by the assessee [payments made after stipulated dates prescribed under relevant laws governing provident fund and ESI, but before due date of filing of return prescribed u/s 139(1) are to be sustained or deleted? - HELD THAT:- We are aware about amendments to section 36(1)(va) and 43B of Income Tax Act, brought into effect by Finance Act, 2021. As regards whether these amendments are prospective in nature and applicable with effect from 01.04.2021 or retrospective in nature having applicability even before 01.04.2021; we are aware of some reported orders of ITAT, passed after the aforesaid amendments were brought in by Finance Act, 2021; in which the issue in dispute for Assessment Years prior to Assessment Year 2021-22 (i.e. for periods before 01.04.2021) has been decided in favour of the assessee and against Revenue. See DIGIQAL SOLUTION SERVICES PVT. LTD. [2022 (1) TMI 27 - ITAT CHANDIGARH], M/S MAHADEV COLD STORAGE,[2021 (6) TMI 506 - ITAT AGRA]. Revenue should have given due consideration to the fact that the issue was highly debatable and controversial. As already discussed earlier, adjustments u/s 143(1) of Income Tax Act by way of 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 u/s 143(1) of Income Tax Act on a debatable and controversial issue. We would also like to make respectful mention of order of Jabalpur Bench of ITAT in the case of Nikhil Mohine [2021 (11) TMI 927 - ITAT JABALPUR] in which similar view has been taken. Thus direct the Assessing Officer to delete the additions made by way of adjustments/intimation u/s 143(1).
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