2022 (4) TMI 907

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....ing the appeal. Application for condonation of delay is placed on record explaining the cause for delay. Ld. DR did not object on the delay being reasonable. Accordingly, considering the reasonableness for the cause, we condone the delay and take up the appeal for adjudication. 3. At the outset, Shri Miraj D.Shah, Learned Authorised Representative of the assessee has pointed out that the issue is regarding the adjustment made by the CPC, Bengaluru while processing the return of income filed by the assessee. According to him, as per section 143(1)(a) of the Income-tax Act, 1961 (in short, the 'Act'), the jurisdiction of CPC is limited by clause (i) to (vi) of the said section. It is submitted by him that even if there is any adjustment, w....

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....d. AR contended that the assessee cannot control the affairs of its clients & specify under which head / section her clients will deduct TDS and the fact remains that the assessee did not provide any professional or technical service but simply "service" in the course of supplying man-power as per the requirement of the clients and that mere deduction of TDS by client under a particular section cannot determine the character of the income of the assessee. According to the Ld. AR, though the nature of service provided is nothing but labour supply, the clients deducted the TDS u/s 194J of the Act, over which assessee had no control and this resulted in the reflection of the same in Form 26AS statement. It is stated by Ld. AR that by making th....

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....come assessable u/s 44ADA over & above her reported source i.e. Income from business. Such assessment is beyond the jurisdiction of assessment u/s 143(1) of the Act. 3.3 Ld. AR also contended that classification of income is a complex & debatable issue and therefore in absence of detailed scrutiny and examination of records, facts and details as it is done u/s 143(2) or 148 of the Act, it is not possible either on the part of the assessee nor by the department to adjudicate the issue in a fair, transparent & judicious manner. 4. Per contra, Shri Biswanath Das, Add.CIT/Ld. DR contended that when in Form 26AS, there has been deduction made by the payer, which bears the character of professional receipt (section 194J deduction) and there....