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TMI Blog2023 (9) TMI 1677X X X X Extracts X X X X X X X X Extracts X X X X ..... Faceless Appeal Centre (the ld. CIT(A), NFAC) erred in not deleting the adjustments made by learned Asst. Director of Income Tax, CPC (the ld. ADIT-CPC) u/s. 143(1)(a)(iv) while processing the return of income u/s. 143(1) of the Act being contrary to provisions as laid down in second proviso of Section 143(1)(a) of the Act. 1.(b) The ld. CIT(A) NFAC ought to have deleted the adjustment u/s. 143(1)(a)(iv) as the ld. ADIT-CPC failed to consider and deal with the response filed by the appellant in reply to the receipt of intimation of adjustments u/s. 143(1)(a) of the Act as required in terms of second proviso to the said section and as such the adjustment made in the Intimation u/s. 143(1) of the Act is invalid and requires to be deleted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciating that mere indication in a tax audit report, by themselves, cannot be justifications enough for any disallowance of expenditure u/s. 143(1) (a) (iv) and more so in case where appellant company was not in agreement with view of Tax Auditor as mentioned in Tax Audit Report of treating the same as capital expenditure and as such the view of the tax auditor in tax audit report cannot bind the appellant. 4. (c) The ld. CIT (A), NFAC ought to have deleted addition of Rs. 35, 23, 99,063/- made u/s. 143(1)(a)(iv) as: (i) Opinion of Tax Auditor was not in harmony with the law laid down by the Hon'ble High Courts; (ii) while preparing the tax audit report, the auditor is expected to report the information as per the provisions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imation, assessee preferred an appeal before the Ld. CIT (A), who in turn confirmed the processing done u/s. 143(1) of the Act. Assessee being further aggrieved preferred this present appeal before us. 3. We have gone through the intimation/order passed u/s. 143(1) of the Act, Order u/s. 143(3) r.w.s. 144B of the Act, Order of the Ld. CIT (A) u/s. 250 and submissions of the assessee alongwith grounds of appeal taken before us. Our observation after going through these documents can be summarised as under: Revenue never doubted over the expenditure incurred by the assessee, the only issue was treatment of the same from tax point of view, i.e., whether to allow the same as business expenditure u/s. 37 of the Actor to be treated the same as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pinion of the Tax Auditor appointed by the assessee, as there was the difference between tax auditor's report and what assessee claimed in its return. 4. For sake of ready reference and better clarity over the issue we need to analyse the powers/scope given to CPC, Bangalore through section 143(1) as under: 143. [(1) where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely: - (a) the total income or loss shall be computed after making the following adjustments, namely: - (i) any arithmetical error in the return; (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; [(iii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax [, interest and fee], if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, [any relief allowable under section 89,] any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax [, interest or fee]; (d) an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and (e) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpeditiously determining the tax payable by, or the refund due to, the assessee as required under the said sub-section. (1B) Save as otherwise expressly provided, for the purpose of giving effect to the scheme made under sub-section (1A), the Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Act relating to processing of returns shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in that notification; so, however, that no direction shall be issued after the 31st day of March, [2012]. (1C) every notification issued under sub-section (1B), along with the scheme made under sub-section (1A), shall, as soon as may be after the notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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