TMI Blog2022 (4) TMI 907X X X X Extracts X X X X X X X X Extracts X X X X ..... conducting any enquiry, more particularly when the man power supply is not covered as a profession within the meaning of section 44AA of the Act read with relevant notifications. We find force in the contention of the Ld. AR that this particular issue could not have been decided by the CPC u/s. 143(1)(a) of the Act. In case, if the department finds that there is an anomaly, then it has liberty to do so by conducting scrutiny assessment under the provisions of law or to re-open the assessment u/s. 147 of the Act. Thus, we find that CPC had no jurisdiction to make impugned adjustment within the meaning of section 143(1)(a) of the Act. Accordingly, the adjustment made by the CPC stands deleted. Appeal of assessee allowed. - ITA No.109/Ko ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld.AR, in this case, the assessee had two types of business: (i) Business of Confectionary (ii) Man Power Supply Business. The total turnover of ₹ 52.81 lakhs comprised of the turnover of the said two businesses for the year under consideration as ₹ 21.60 lakhs for business of confectionary and ₹ 31.21 lakhs for the business of man power supply. Ld. AR stated that the assessee in her return of income opted for the presumptive taxation scheme u/s 44AD of the Act and disclosed a net income @ 18.40% on ₹ 52.81 Lakh turnover and disclosed a business income at ₹ 9,72,735, for both the businesses taken together. However, CPC while processing the return u/s 143(1) of the Act, determined the total income at S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AS (TDS deducted u/s. 194J erroneously by deductor / payer), once by accepting the income of ₹ 9,72,735 determined on the total turnover of ₹ 52.81 lakhs which included the man power business turnover and then again by making adjustment in towards presumptive income @ 50% on turnover of ₹ 31.21 lakhs of Manpower business. 3.2 According to the Ld.AR, this is an issue, which raises a question of fact and can be done only on scrutiny assessment u/s. 143(3) of the Act or by re-opening of assessment u/s. 147 of the Act. According to the Ld. AR, the CPC ought not to have made adjustment in the total income of the assessee by including additional turnover in respect of profession as ₹ 31,21,167/-. Section 143(1) of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have heard both the parties and perused the record. The question is limited as to whether the CPC u/s. 143(1)(a) of the Act can make any adjustment/addition in the aforesaid facts and circumstances. According to us, the CPC could not have made the adjustment since the question of fact arises on the factual matrix of this case as noted above. The assessee s contention is that the amount of ₹ 31,21,167/- is included in the turnover of ₹ 52,81,344/-. Therefore, merely based on TDS entries given in Form 26AS for deduction of tax u/s. 194J, the adjustment could not have been made without conducting any enquiry, more particularly when the man power supply is not covered as a profession within the meaning of section 44AA of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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