2023 (9) TMI 1714

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ection 143(1) of the Income Tax Act, 1961 (the Act) concerning AY 2019-20. 2. The grounds of appeal raised by the assessee read as under: "1. The order passed by Ld. CIT(A)/ NFAC on the facts and in the circumstances of the case is bad in law. 2. On the facts and in the circumstances of the case the Ld. CIT(A)/NFAC has erred in law by not adjustments the grounds raised in appeal but dismissing the appeal .The Ld. CIT (A)/NFAC has erred in law by directing the Ld. AO for verification of issues of adjustment made u/s. 143(1) without any further clear directions. 3. (i) The Ld. AO (CPC) has erred in law and on facts by making adjustment of addition of Rs.199,78,054/- in the returned income by invoking section 36(1....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the Act. The relevant operative paragraph of the order of the CIT(A) is reproduced hereunder: "In the given facts and circumstances of the case, when there is absolutely no clarity as to the reason for adjustment/ addition made in the order passed u/s. 143(1) of the Act by the CPC, and the assessee was apparently not even given an opportunity before making such addition/adjustment, the A.O. is directed to verify the claim of the appellant vis-a-vis the adjustments made by the CPC with respect to return of income filed in accordance with the section 143(1) of the Act. No need to emphasize that proper opportunity of being heard to the appellant must be given. At the same time, this is a matter of record that original returns / rec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t, the compliance of Provident Fund Laws stand carried out and there is no delay in transferring the amount to the credit of Provident Fund Trust so created for the welfare of the employees. The Assessing Officer has proceeded based on mistaken reporting by the Tax Auditor de hors grounds realities. As a corollary, the employees contribution is deemed to have been paid within due date as specified under the relevant statute. 4.2 The ld. counsel thus submitted that the issue may be remanded back to the file of the Assessing Officer for verification of all relevant facts. Likewise, based on the wrong reporting in the Tax Audit Report, the Assessing Officer has made disallowance under Section 40A(9) on account of bona fide expenses incurred....