AO directed to vacate s.141(1)(a) demand linked to s.40A(7) gratuity disallowance; s.143(1)(a) allows AO to disallow based on audit report

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....ITAT directed the AO to give effect to his own order under s.143(3) and vacate that portion of the demand raised under s.141(1)(a) attributable to disallowance of gratuity provision under s.40A(7), allowing Ground No.1 of the appeal and thereby reducing the demand in favour of the assessee. With respect to delayed employer/employee welfare contributions, the Tribunal noted the amendment to s.143(1)(a) by the Finance Act, 2016 and, having regard to the SC precedent, held that an AO is competent to effect disallowances while processing the return under s.143(1)(a) where the audit report indicates such liability; the CIT(A)'s observations and prior ITAT view supporting this position were endorsed.....