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Income Tax Appellate Tribunal, MUMBAI BENCH “E” MUMBAI
Before: SHRI ABY T VARKEY & SHRI OM PRAKASH KANT
This appeal has been preferred by the assessee against order dated 28.12.022 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2020-21 in relation to intimation/processing order passed u/s 143(1) of the Income-tax Act, 1961 (in short ‘the Act’) by the Central Processing Centre, Bangalore. The grounds raised by the assessee are reproduced as under:
Trio Jewels Pvt. Ltd. 2 ITA No. 297/M/2023
“In the facts and circumstances of the case and in law, the Ld. the facts and circumstances of the case and in law, the Ld. the facts and circumstances of the case and in law, the Ld. CIT(A) erred in CIT(A) erred in- confirming the adjustments made by the Ld. ADIT, CPC confirming the adjustments made by the Ld. ADIT, CPC confirming the adjustments made by the Ld. ADIT, CPC aggregating to Rs. 8,80,023/ aggregating to Rs. 8,80,023/- disregarding the following disregarding the following factual aspects: factual aspects: (a) Same are made without complying to the Same are made without complying to the Same are made without complying to the condition stipulated under 1st proviso to Section 143(1)(a) of the Act stipulated under 1st proviso to Section 143(1)(a) of the Act stipulated under 1st proviso to Section 143(1)(a) of the Act requiring service of prior intimation of proposing such requiring service of prior intimation of proposing such requiring service of prior intimation of proposing such adjustments; adjustments; (b)Same are made disregarding the disclosure(s) made in the (b)Same are made disregarding the disclosure(s) made in the (b)Same are made disregarding the disclosure(s) made in the Tax Audit Report and Tax Audit Report and (c)Same are not covered by any of t (c)Same are not covered by any of the clauses of Section he clauses of Section 143(1)(a). Without prejudice to the above and in the alternate Without prejudice to the above and in the alternate Without prejudice to the above and in the alternate 2. confirming the adjustment made by the Ld. ADIT, CPC of confirming the adjustment made by the Ld. ADIT, CPC of confirming the adjustment made by the Ld. ADIT, CPC of Rs. 8,79,915 / Rs. 8,79,915 /-: (a)on the presumption that the sums aggregating to Rs. (a)on the presumption that the sums aggregating to Rs. (a)on the presumption that the sums aggregating to Rs. 8,79,915/-represent employees' contributi represent employees' contribution to PF and ESIC on to PF and ESIC which were not paid on or before the due date prescribed which were not paid on or before the due date prescribed which were not paid on or before the due date prescribed under the respective Act and under the respective Act and (b) disregarding the disclosure made vide Clause 26)(B) of the disregarding the disclosure made vide Clause 26)(B) of the disregarding the disclosure made vide Clause 26)(B) of the Tax Audit Report that these sums are covered by Section 43B; Tax Audit Report that these sums are covered by Section 43B; Tax Audit Report that these sums are covered by Section 43B; which were paid on or before which were paid on or before the due date of furnishing the the due date of furnishing the return of income u/s. 139(1) of the Act. return of income u/s. 139(1) of the Act. 3. confirming the adjustment made by the Ld. ADIT, CPC of confirming the adjustment made by the Ld. ADIT, CPC of confirming the adjustment made by the Ld. ADIT, CPC of employees' contribution to MLWF of Rs. 108/ employees' contribution to MLWF of Rs. 108/ employees' contribution to MLWF of Rs. 108/- on the presumption that the same was not paid on or before the due presumption that the same was not paid on or before the due presumption that the same was not paid on or before the due date prescrib date prescribed under the respective Act; disregarding the ed under the respective Act; disregarding the disclosure made vide Clause 20(b) of the Tax Audit Report that disclosure made vide Clause 20(b) of the Tax Audit Report that disclosure made vide Clause 20(b) of the Tax Audit Report that the same was paid before the prescribed due date. the same was paid before the prescribed due date. the same was paid before the prescribed due date. It is humbly prayed that the reliefs as prayed for hereinabove It is humbly prayed that the reliefs as prayed for hereinabove It is humbly prayed that the reliefs as prayed for hereinabove should be granted. should be granted.
Trio Jewels Pvt. Ltd. 3 ITA No. 297/M/2023
We have heard rival submission of the parties on the issue d rival submission of the parties on the issue-in- d rival submission of the parties on the issue dispute and perused the relevant material on record. In ground No. dispute and perused the relevant material on record. In ground No. dispute and perused the relevant material on record. In ground No. 1, the assessee has challenged adjustment 1, the assessee has challenged adjustment mad u/s 143(1)(a) of the u/s 143(1)(a) of the Act without prior intimation of proposing such adjustment. On Act without prior intimation of proposing such adjustment. On Act without prior intimation of proposing such adjustment. On being questionedby the Bench for filing the e the Bench for filing the e-mail correspondence mail correspondence with the Department, the assessee express unavailability in the Department, the assessee express unavailability in the Department, the assessee express unavailability in producing correspondence and therefore in absence of any evidence producing correspondence and therefore in absence of any evidence producing correspondence and therefore in absence of any evidence supporting the allegation of non supporting the allegation of non-intimation. The ground of appeal intimation. The ground of appeal is accordingly dismissed. dingly dismissed.
3. In ground No. 2 2, the assessee has challenged that adjustment , the assessee has challenged that adjustment of Rs.8,79,915/- has been wrongly made by the CPC. The Ld. has been wrongly made by the CPC. The Ld. has been wrongly made by the CPC. The Ld. Counsel of the assessee referred to the clause No. 26(i)(B)(a) of the Counsel of the assessee referred to the clause No. 26(i)(B)(a) of the Counsel of the assessee referred to the clause No. 26(i)(B)(a) of the Tax Audit Report filed online. The said Tax Audit Report filed online. The said clause of the tax audit report clause of the tax audit report is reproducedbelow for ready reference : for ready reference :
26(i)(B)(a) Paid on or before the due date for furnishing the return of income of the previous year under Paid on or before the due date for furnishing the return of income of the previous year under Paid on or before the due date for furnishing the return of income of the previous year under section 139(1) S. Section Nature of liability Nature of liability Amount No.
2. Sec 43(c)-sum sum referred to u/s 36(1)(ii) Bonus 848354 3. Sec 43(b)- -provident, superannuation, Emoployers contribution to Emoployers contribution to 11561 gratuity, other fund gratuity, other fund provident fund 4. Sec 43B(f)-leave encashment leave encashment Leave Encashment Leave Encashment 20000 4. On perusal of the above information filed by the assessee On perusal of the above information filed by the assessee On perusal of the above information filed by the assessee in tax audit report, which is the basis of adjustment by the Central which is the basis of adjustment by the Central which is the basis of adjustment by the Central Processing Centre, we find that sum of Rs.8,48,354/- is towards Processing Centre, we find that sum of Rs.8,48,354/ Processing Centre, we find that sum of Rs.8,48,354/ bonus payment which is allowed subject to the provisions of secti us payment which is allowed subject to the provisions of section us payment which is allowed subject to the provisions of secti 43B of the Act i.e. payment before due date of filing of return of 43B of the Act i.e. payment before due date of filing of return of 43B of the Act i.e. payment before due date of filing of return of income. The payment of Rs.20,000/ income. The payment of Rs.20,000/- relates to leave encashment relates to leave encashment
Trio Jewels Pvt. Ltd. 4 ITA No. 297/M/2023 which also is subject to section 43B of the Act. The third item is which also is subject to section 43B of the Act. The third item is which also is subject to section 43B of the Act. The third item is employer contribution to provident fund and which is also subject employer contribution to provident fund and which is als employer contribution to provident fund and which is als to section 43B of the Act. Therefore, the Assessing Officer of the to section 43B of the Act. Therefore, the Assessing Officer of the to section 43B of the Act. Therefore, the Assessing Officer of the CPC CPC CPC has has has wrongly wrongly wrongly made made made adjustment adjustment adjustment for for for total total total amount amount amount of of of Rs.8,79,915/- under the assumption that said amount being under the assumption that said amount being under the assumption that said amount being employee’s contribution contribution to PF/ESI. The Ld. CIT(A) has also upheld PF/ESI. The Ld. CIT(A) has also upheld the adjustment without verification of the adjustment without verification of the factual information and factual information and application of mind. In view of above payment of Rs.8,79,915/- not application of mind. In view of above payment of Rs.8,79,915/ application of mind. In view of above payment of Rs.8,79,915/ being employee’s contribution to PF and ESI contribution to PF and ESI, the disallowance the disallowance is deleted. The order of the Ld. CIT(A) on the issue-in-dispute is deleted. The order of the Ld. CIT(A) on the issue deleted. The order of the Ld. CIT(A) on the issue accordingly set aside. accordingly set aside. The ground No. 2 of the appeal is accordingly The ground No. 2 of the appeal is accordingly allowed.
The ground No. 3 relates to The ground No. 3 relates to employee’s contribution to contribution to the ‘Maharashtra Labour Welfare Fund Maharashtra Labour Welfare Fund’( MLWF) of Rs.108 of Rs.108/-. which again CPC has adjusted/disallowed holding that same was paid again CPC has adjusted/disallowed holding that same again CPC has adjusted/disallowed holding that same after the due date prescribed under the respect Act. after the due date prescribed under the respect Act. after the due date prescribed under the respect Act.
Before us, the Ld. Counsel of the assessee referred to the Before us, the Ld. Counsel of the assessee referred to the Before us, the Ld. Counsel of the assessee referred to the clause 20(b) of the tax audit report and clause 20(b) of the tax audit report and submitted that the submitted that the sum of Rs.108/- for ‘Maharashtra Labour Welfare Fund Maharashtra Labour Welfare Fund’ was paid before was paid before 13.01.2022 which is before the due date of the payment i.e. on 3.01.2022 which is before the due date of the payment i.e. on 3.01.2022 which is before the due date of the payment i.e. on 15.1.2020. In view of the above facts, the sum paid being within the 15.1.2020. In view of the above facts, the sum paid being within the 15.1.2020. In view of the above facts, the sum paid being within the due date prescribed under the relevant Act,therefore, the due date prescribed under the due date prescribed under the relevant Act relevant Act adjustment/disallowance made by the CPC and upheld by the Ld. adjustment/disallowance made by the CPC and upheld by the Ld. adjustment/disallowance made by the CPC and upheld by the Ld. CIT(A) is deleted. The ground No. 3 of the appeal is allowed. ) is deleted. The ground No. 3 of the appeal is allowed. ) is deleted. The ground No. 3 of the appeal is allowed.
Trio Jewels Pvt. Ltd. 5 ITA No. 297/M/2023