Tribunal upholds assessment order for 2018-19, dismissing Assessee's appeal. Late deposits and limited scrutiny considered.

The Tribunal dismissed the Assessee's appeal challenging the assessment order for the Assessment Year 2018-19. The Tribunal upheld the additions made to the returned income, including those related to late deposits of employees' contributions towards PF & ESIC and other sources. It ruled that the assessment order was within the scope of limited scrutiny and aligned with the intimation under Section 143(1) of the Act. The Tribunal found no merit in the Assessee's contentions and dismissed the appeal on 9th June 2023.

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Issues involved:
The issues involved in this judgment include challenging the assessment order under Sections 143(3), 143(3A), and 143(3B of the Act, and disputing the additions made to the returned income, specifically related to late deposit of employees' contributions towards PF & ESIC, disallowances under Sections 36, 37, and other sources, and the scope of limited scrutiny assessment.

Assessment Order Challenge:
The Assessee challenged the assessment order passed by the CIT(A) for the Assessment Year 2018-19, arguing that it was bad in law due to procedural irregularities. The Assessee contended that the assessment order was passed without following due procedure, lacking concrete reasons for additions made, and exceeding the scope of scrutiny assessment notice. The Assessee sought to have the assessment order quashed on these grounds.

Additions to Returned Income:
Regarding the additions totaling Rs. 4,40,100/- to the returned income, the Assessee disputed the actions of the CIT(A) in confirming the additions made by the Assessing Officer. The Assessee argued that the additions related to late deposits of employees' contributions towards PF & ESIC were erroneous, as the contributions were deposited on the due date but showed a later credit date due to technical issues. The Assessee also contested the additions under Section 37 and other sources, claiming that the CIT(A) failed to address these issues adequately despite relevant submissions during the appellate proceedings. The Assessee requested the deletion of these additions.

Limited Scrutiny Assessment:
The Assessee contended that the Assessing Officer exceeded the scope of limited scrutiny assessment by making additions beyond the identified issue. The Assessee argued that the assessment order should be quashed based on established principles that restrict the Assessing Officer from expanding the scope of limited scrutiny. The Assessee cited relevant decisions and CBDT circulars to support this argument.

Judgment:
The Tribunal dismissed the appeal of the Assessee, ruling that the assessment order was not beyond the scope of limited scrutiny and that the additions to the returned income were in line with the intimation under Section 143(1) of the Act, which the Assessee had not challenged previously. Therefore, the Tribunal upheld the additions made by the Assessing Officer and the CIT(A), concluding that the appeal was restricted to the issues within the limited scrutiny assessment. The Tribunal also noted a general ground raised by the Assessee but did not require adjudication on it. Ultimately, the Tribunal dismissed the appeal of the Assessee, pronouncing the order on 9th June 2023.

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