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2023 (6) TMI 168 - AT - Income TaxDisallowance of employees' contribution to PF/ESI u/s 36(1)(va) read with section 2(24)(x) - adjustment made while processing the return u/s 143(1) - information given in the audit report relied upon - HELD THAT:- The crux of the entire decision of 'Kalpesh Synthetics Pvt. Ltd. vs. DCIT' [2022 (5) TMI 461 - ITAT MUMBAI] is that even when the factual information given in the audit report indicates the disallowance u/s 36(1)(va), however, that is subject to the law laid down by the courts and if the Jurisdictional High Court has interpreted the provisions in any other manner then the decision of the Hon'ble High Court would prevail over the indication given in the tax audit report. The above views of in 'Kalpesh Synthetics Pvt. Ltd. in no manner is suggestive that the adjustment u/s 36(1)(va) cannot be made while processing the return u/s 143(1) of the Act, rather, the above view is limited to the proposition that if the law laid down by the High Court/Supreme Court is otherwise as compared to the factual information given in the audit report, then the law laid down by the Hon'ble High Court/Supreme Court would prevail over the tax audit report. As observed above, the law has been settled in the case of Checkmate Services Pvt. Ltd. [2022 (10) TMI 617 - SUPREME COURT] - The law declared by the Hon'ble Supreme Court is to be treated as if the same was the right interpretation since the date of the inception of the relevant provision and, therefore, even as per the decision of the Coordinate Bench of the Tribunal in 'Kalpesh Synthetics Pvt. Ltd. vs. DCIT' (supra), the issue is required to be decided in favour of the Revenue and against the assessee.
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