2023 (4) TMI 288 - AT - Income Tax

Belated remittance of employee’s contribution towards PF & ESI - HELD THAT:- We find that the issue is squarely covered in favour of the revenue by the decision of Hon’ble Supreme Court in the case of Checkmate Services P Ltd [2022 (10) TMI 617 - SUPREME COURT]

Adjustments' u/s 143(1)(a)(ii) - Since, the deduction claimed by the assessee towards belated remittance of PF & ESI is contrary to provisions of section 36(1)(va) r.w.s. 2(24)(x) and 43B of the Act, in our considered view, said claim comes under sub clause (ii) of section 143(1) which says that incorrect claim, if such incorrect claim is apparent from any information in the return, it needs to be adjusted while computing income u/s. 143(1)(a) of the Act. Therefore, we reject the argument of the assessee.

Disallowance of deduction u/s. 80JJAA - return is filed beyond the due date of filing return of income u/s. 139(1) - HELD THAT:- As up to assessment year 2020-21, there is no provisions u/s. 143(1)(a) of the Act to make any adjustments towards Chapter VI-A deductions while processing return of income u/s. 143(1)(a) of the Act. Therefore, we are of the considered view that even if assessee does not file return of income on or before due date prescribed u/s. 139(1) then no adjustment can be made towards Chapter VI-A deductions under the head C-deductions in respect of certain income. Since, deduction u/s. 80JJAA comes under Chapter VI-A under the head C, in our considered view, while processing return of income for the assessment year 2018-19, the AO cannot make any adjustments while processing return of income u/s. 143(1)(a) - AO is erred in making additions towards deduction claimed u/s. 80JJAA of the Act, while processing return of income u/s. 143(1)(a) of the Act, and thus, we direct the AO to delete additions made towards deduction claimed u/s. 80JJAA of the Act. Decided in favour of assessee.