TaxTMI 
TaxTMI 
2023 (4) TMI 288
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....see has raised the following grounds of appeal: "The appellant objects to the Commissioner (appeals) [CIT(A)] upholding the: i) 'adjustments' u/s 143(1)(a)(ii) by way of- a. Disallowance of ESI Rs.25884 u/s 36; b. Disallowance of EPF Rs.161814 u/s 36 & c. Disallowance of deduction of Rs.426197 u/s 80JJAA; ii) Consequent levy of additional tax, surcharge and cess; iii) Computation of interests u/s 234A; 2348 & 234C for 2018- 19 a/y on the following grounds: 1. The CIT(A) erred in upholding the legality of the intimation u/s 143(1) making 'adjustments' to the Total income, which is against Law and the facts of the case. 2.1 The CIT(A) failed to ap....
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....)(v) providing for disallowance of deductions when return is filed beyond the due date and as it is neither an 'incorrect 'CLAIM' nor an 'incorrect 'CLAIM which is apparent from any information in the return'. 3.4 The reason for denying deduction u/s 80JJAA, viz., that the return was not filed within the due date, is also erroneous as the said condition in sec.80AC(ii) is only in respect of "Deductions in respect of certain INCOMES" and sec.80JJAA allows a "deduction in respect of an EXPENDITURE". 4. As a corollary, the levy of additional tax, surcharge and cess are all bad in Law. 5. The interests charged u/s 234A; 2348 & 234C require re-computation consequent to the above. On the....
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....(va) of the Act and disallowance of deduction claimed u/s. 80JJAA of the Act. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 4. The first issue that came up for our consideration from grounds of appeal filed by the assessee is disallowance of belated payment of employees contribution to PF& ESI amounting to Rs. 1,87,698/- while processing return of income u/s. 143(1)(a) of the Act. The ld. Counsel for the assessee, referring to provisions of section 143(1)(a)(iv) of the Act, submitted that the AO, CPC ought not to have disallowed PF & ESI contribution while processing return of income u/s. 143(1)(a) of the Act, contrary to procedure laid down by the CBDT for processing return of income. He, further submitted that the....
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....ty to be paid by employer am second is deemed income as per section 2(24)(x) which is held in trust by assesseeemploye1 thus, said marked difference was to be borne while interpreting obligation of assessee employer under section 438 - Held, yes - Whether non obstante clause under section 431 could not apply in case of amounts which were held in trust as was case of employee': contribution which were deducted from their income and was not part assessee-employer': income, thus, said clause would not absolve assessee-employer from its liability to deposit employee's contribution on or before due date as a condition for deduction - Held, yes [Para: 53 and 54] [In favour of revenue]" 7. In so far as the arguments of the assessee ....
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...., submitted that deduction u/s. 80JJAA of the Act cannot be disallowed just because the return is filed beyond the due date of filing return of income u/s. 139(1) of the Act, because as per sub clause (v), deduction claimed under Chapter VI-A(C) can be adjusted while processing return of income u/s. 143(1)(a) of the Act from assessment year 2021- 22 onwards. 10. The Ld. DR, on the other hand submitted that from the assessment year 2018-19 onwards, any deduction is admissible under any provisions of Chapter VI-A under the head 'C- deduction in respect of certain income' and can be allowed only if return of income is filed on or before due date prescribed u/s. 139(1) of the Act. Since, the assessee has filed return of income beyond due dat....