2024 (4) TMI 53

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....the Act, dated 28.02.2020 passed by Asst. Commissioner of Income Tax(CPC). The assessee has raised the following grounds of appeal : "1. That the National faceless Appeal Centre (NFAC)/CIT (A) fails to consider the fact that the proceeding U/s 143(1) permit only prima-facie adjustment and debatable issue falls outside the ambit of adjustment contemplated U/s 143(1). 2. That the learned CIT(A) fails to appreciate the fact that the amended provision having been given effect only from 01.04.2021 by way of amendment of sub clause (iv) of Section 143(1), therefore adjustment prior to A.Y 20-21 on account of increase in income is not in accordance with law. 3. That the CIT(Appeals) erred in confirming the disallowance m....

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....re the ld.CIT(A). 3.1 The ld.CIT(A) discussed all the facts and confirmed the disallowance following the Hon'ble Supreme Court's decision in the case Checkmate Services Pvt. Ltd., Vs. CIT. 4. In this case, it is an admitted fact that the assessee had paid the impugned amount beyond the due date specified in the respective statute. Therefore, the ACIT(CPC) disallowed the impugned amounts in the order under section 143(1). In this case, assessee had filed a rectification application before the Assessing Officer(AO) i.e. ACIT(CPC). The AO rejected assessee's application and ld.CIT(A) upheld the same. The rectification application can be filed only for the mistakes apparent from record. The disallowance made by AO on the ground that emplo....

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....t of the assessee employer's income, nor are they heads of deduction per se in the form of statutory pay out. They are others' income, monies, only deemed to be income, with the object of ensuring that they are paid within the due date specified in the particular law. They have to be deposited in terms of such welfare enactments. It is upon deposit, in terms of those enactments and on or before the due dates mandated by such concerned law, that the amount which is otherwise retained, and deemed an income, is treated as a deduction. Thus, it is an essential condition for the deduction that such amounts are deposited on or before the due date. If such interpretation were to be adopted, the non-obstante clause under Section 43B or anything con....