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2023 (3) TMI 1366 - AT - Income TaxDelayed employees’ contribution to PF/ESIC - Disallowance u/s 36(1)(va) in the order passed u/s 143(1) - HELD THAT:- While processing the return of income that was filed u/s 139 or section 142(1) of the Act and computing the total income or loss, the adjustment need not be confined to the disallowance of expenditure or increase in income, indicated in the audit report, but not taken into account in the total income under clause (iv), but law permits such adjustment could also be in respect of an incorrect claim which is apparent from the information in the return under clause (ii). With the law declared in the case of Checkmate Services Pvt. Ltd. [2022 (10) TMI 617 - SUPREME COURT] any claim for deduction under section 36(1)(va) of the Act wherein the assessee fails to credit the sums received from the employees to which the provisions under section 2(24)(x) of the Act are applicable, preferred by the assessee would be patently an incorrect claim and the adjustment in that respect at the stage of 143(1) of the Act process is perfectly justified. There is nothing illegality or irregularity in making the disallowance u/s 36(1)(va) in the order passed under section 143(1) and, therefore, CIT(A) rightly upheld the same. Decided against assessee.
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