Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (12) TMI 841 - AT - Income TaxPrima facie adjustments - while processing the return u/s 143(1) - Disallowance of employees contribution to Provident Fund - Addition made based on the statement made in the Tax Audit Report while processing the return u/s 143(1) - HELD THAT:- It is not in dispute that assessee had remitted the employees contribution to Provident Fund beyond the due date prescribed under the Provident Fund Act, but had duly remitted the same before the due date of filing the return of income u/s 139(1) - This fact of remittance made by the assessee with delay had been reported by the Tax Auditor in the Tax Audit Report. Tax Auditor had not even contemplated to disallow the employees’ contribution to Provident Fund wherever it is remitted beyond the due date prescribed under the Provident Fund Act. It is merely recording of facts and a mere statement made by the Tax Auditor in his audit report. CPC Bangalore had taken up this data from tax audit report and sought to disallow the same while processing the return u/s 143(1) of the Act, apparently by applying the provisions of section 143(1)(a)(iv) of the Act. The tax auditor had not stated in the instant case to disallow Employees Contribution to Provident Fund wherever it is remitted beyond the due date under the respective Act. Hence, the said action of the Ld.CPC Bangalore in disallowing the employees’ contribution to Provident Fund while processing the return u/s 143(1) of the Act is against the provisions of the Act as it would not fall within the ambit of prima facie adjustments. Our view is further fortified by the co-ordinate bench decision of this Tribunal in the case of Kalpesh Synthetics Pvt Ltd. [2022 (5) TMI 461 - ITAT MUMBAI] - Decided in favour of assessee.
|