2024 (3) TMI 711

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....e following grounds of appeal: "1) For that on the facts and circumstances of the case, Ld. CIT (Appeals) was grossly erred in confirming the addition of Rs. 11,76,344/- made by A.O. at CPC on account of delay in deposit of employees contribution to P.F. and ESI while processing the return of income U/s 143(1) when in fact entire the sum was paid within the due dates specified under the relevant statues and wrong mention of dates in Tax Audit Report were duly brought to the notice of Ld. CIT (Appeals). 2) For that on the facts and circumstances of the case, the confirmation of addition of Rs. 11,76,344/- invoking Sec 36(1) (va) by CIT (Appeals) is wrong in as much as there is no delay in deposit of employees contribution t....

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....loyees' Contribution to ESI & PF is found deposited within the due date as prescribed under the relevant statues, then no disallowance be made in that respect. 6. Ground No.3 - Vide Ground No.3, the assessee has agitated that the CPC/Assessing Officer while processing the return u/s 143(1) of the Act has made a disallowance of deduction of Rs. 8,39,005/- claimed u/s 80JJAA of the Act. 7. The ld. Counsel in this respect has submitted that the assessment year under consideration being A.Y 2019-20 and at the relevant time, there was no provision for making such disallowance u/s 143(1) of the Act. He in this respect has relied upon the decision of the Coordinate bench of the Tribunal in the case of Sujatha Pugazendhi vs. ACIT reported in ....

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....on 80AC of the Act, if return of income is not filed on or before due date prescribed u/s. 139(1) of the Act, then deduction provided under Chapter VI A-C cannot be allowed. But if you go by provisions of section 143(1)(a) of the Act, sub clause (v) has been amended by the Finance Act, 2021 w.e.f. 01.04.2021 and inserted Chapter VI-A deduction for the purpose of making adjustments while computing income u/s. 143(1)(a) of the Act. From the above, it is very clear that up to assessment year 2020-21, there is no provisions u/s. 143(1)(a) of the Act to make any adjustments towards Chapter VI-A deductions while processing return of income u/s. 143(1)(a) of the Act. Therefore, we are of the considered view that even if assessee does not file retu....