2024 (5) TMI 1644

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....sallowance made by the AO for Rs. 12,02,660/- representing the employee's contribution towards PF/ESI on account of non-deposit within the due date. 2.1 The assessee in the present case is a partnership firm and filed return of income declaring an income of Rs.12,02,660/- only which was processed u/s 143(1) of the Act dated 26/08/2021 by making the disallowance of Rs. 6,61,035/- under the provisions of sec. 36(1)(va) of the Act on account of non-deposit of employees contribution towards PF and ESI within the due date as specified under the respective Act of PF/ESI. 3. On appeal, the ld. CIT(A) dismissed the appeal of the assessee by upholding the adjustment made in the intimation generated u/s 143(1) of the Act. 4. Being aggrieved ....

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....essee, Copy of intimation u/s. 143(1) (a) is enclosed herewith. The details of mail id available on e-filing portal is primary email id: [email protected] and secondary email id: [email protected]. With regards, SHANTHI V ITO WARD 7(2)(5) Mob No. 8762300557 8. We also find that the ITAT Ahmedabad Bench in the case of Devendra Singh Bhaskar, involving identical facts and circumstances in ITA No. 431/Ahd/2022 vide order dated 09-08-2023 for the assessment year 2020-21 has decided the issue in favor of the assessee. The relevant extract of the order is reproduced as under: "10. We have given our thoughtful consideration and perused the materials available on record including the written submission file....

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....imation u/s. 143(1), the same is reproduced as follows: "143. (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:- *** *** *** (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under subsection (1) of section 139; (iv) disallowance....

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....nts as per 1st proviso of Section 143(1)(a) by giving an intimation to the assessee either in writing or in electronic mode before making such adjustments. In response to first proviso, when the assessee replies the same shall be considered before making any adjustments u/s. 143(1)(a) and in case, the assessee fails to response within 30 days of issue of such intimation, the CPC is empowered to make such adjustments. Here, in this case, the assessee was not given any intimation as per 1st proviso to section 143(1)(a) of the Act and CPC straight away made adjustments in 143(1) proceedings and communicated to the assessee by reducing the refund claimed by the assessee. The assessee in his written submission also relied upon Co-ordinate Bench ....