AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 522
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....nst the levy of penalty u/s. 234C of the Act. 4. Learned counsel for the assessee referring to the grounds of appeal submitted that interest u/s. 234C can be levied only on the returned income and not on the assessed income and that on deletion of the erroneous addition made, the interest liability u/s. 234C shall not arise. He further submitted that Ld.CIT(A) erred in not adjudicating the issue of deletion of interest liability u/s. 234C of the Act despite having jurisdiction. 5. On the other hand, ld. Departmental Representative (DR) supported the order of the Ld.CIT(A). 6. We have heard rival contentions and perused the records placed before us. We observe that the assessee is a private limited company and return of income for the A.Y. 2021-22 furnished on 10/03/2021 declaring income of Rs. 3,40,58,93,234/-. The return was processed u/s. 143(1)(a) of the Act making certain adjustments and assessing the income at Rs. 4,17,17,06,640/-. Further, CPC also levied interest u/s. 234C of the Act of Rs. 1,11,43,464/- as against the interest calculated by the assessee u/s. 234C of the Act at Rs. 8,83,612/-. 7. The assessee challenged the adjustments made by the CPC in the grou....
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....Jurisdictional Assessing Officer (JAO) for necessary verification of interest u/s. 234C of the Act calculated by the assessee on the returned income and then decide in accordance with law. Grounds of appeal raised by the assessee are allowed for statistical purposes. 9. Now we take up ITA No. 2707/PUN/2024, wherein along with ground No.2 raised for levy of excess interest u/s. 234C of the Act, the assessee also raised ground No.1 challenging the findings of the Ld.CIT(A) confirming the action of the CPC making addition of Rs. 38,10,67,339/- on account of refund of GST. 10. Facts of the case, in brief, are that the assessee filed return of income for A.Y. 2022-23 on 25/11/2022 and tax audit report u/s. 44AB also furnished. The tax Auditor in column No. 16(b) of Form 3CD which is in respect of amounts not credited to the profit & loss account, the Auditor has mentioned at para 16(b) about the refund of Goods and Services Tax at Rs. 38,10,67,339/-. Now the assessee in the return of income which in this case ITR Form-6 is required to fill various columns mentioned in Part A-OI i.e. other information (mandatory if covered u/s. 44AB) and in schedule at serial No.5, the assessee is ....
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....equired to have been credited to the P & L Account. The Tax Auditor has rightly mentioned it. The Appellant has not furnished any evidence or explanation that the Tax Auditor has wrongly reported it or not. No Copy of correspondence is filed in this regard with the Tax Auditor. Here the Appellant also claimed that the addition can't be made u/s 143(1) and it is out of jurisdiction. I find that the additions were made u/s 143(1)(a) of the Income Tax Act, 1961, which is as under :- "where a return has been made under section 139, or in response to a notice under sub- section (1) of section 143, 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 sub-section (1) of section 139; (iv) disallowance of expenditure indic....
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....submission is to the question the procedure and system adopted by the CPC in processing the returns and making of such adjustments, which are debatable in nature and also referring to other columns of the tax audit report, which allegedly contains some anomaly, the nature of adjustments made by the CPC, reference has also been made to plethora of decisions of this Tribunal in support of its contention and submitted that alleged type of adjustments cannot be made by the CPC. However, he fairly accepted that on merits, case of the assessee deserves to be restored to the file of the JAO for necessary verification of the claim of GST paid/received by the assessee that the adjustments of GST refund is not carried out through profit & loss account. 12. On the other hand, ld. DR supported the orders of the lower authorities. 13. We have heard rival contentions and perused the records placed before us. The issue for our consideration raised by the assessee in ground No.1 is against the addition of Rs. 38,10,67,339/- made by the CPC for refund of GST not credited to the profit & loss account. Learned counsel for the assessee failed to controvert the fact that tax Auditor has mentioned....
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....dopted by the assessee, the tax Auditor would have easily revised tax audit report, but for such inaction on the part of the assessee in not getting tax audit report revised and blaming the CPC‟s processing method is not correct. There may be certain problems in processing of returns, but they are being rectified by the CPC from time to time by updating its system, but the case in hand directly falls u/s. 143(1)(a)(iv) of the Act which refers to the adjustments which can be made by the CPC for disallowance of expenses or increase in income indicated in the audit report, but not taken into account in computing the total income in the return. 16. In the given case, tax Auditor has mentioned the alleged sum of GST refund not credited to the profit & loss account and further the assessee in the return of income, has not taken into account the said observation of the tax Auditor in computing the total income. Therefore, in our considered view, there is no error in processing of return by the CPC making the alleged adjustments. 17. However, the contention of the assessee that the GST refund is adjusted under the head „other current assets‟ shown in schedule 16 in ....