HENNA INDUSTRIES PRIVATE LIMITED,FARIDABAD vs. ASST. DIRECTOR OF INCOME TAX, CPC, BENGALURU
Before: MS. MADHUMITA ROY, & SHRI NAVEEN CHANDRA
PER NAVEEN CHANDRA, A.M:-
This appeal by the assessee is preferred against the order of the ld. CIT(A), Jaipur dated 22.08.2024 for A.Y 2022-23. 2. The assessee has raised as many as 6 grounds of appeal. However, the solitary grievance of the assessee is the adjustment made u/s 143(1)
[A.Y. 2022-23]
of the Income-tax Act, 1961 [the Act, for short] by the CPC on the basis of audit report.
3. Briefly stated, the facts of the case are that the assessee filed its return of income along with Tax Audit Report u/s 44AB of the Income- tax Act, 1961 [the Act, for short] on 28.10.2022 declaring income of Rs.
NIL resulting into a tax refund of Rs 2,47,400/- The Intimation u/s 143(1) of the Act dated 17.01.2023 was received by the assessee on 17.01.2023
wherein loss from Business and Profession has been reduced from Rs
1,84,91,663/- to Rs 1,75,60,958/- by making disallowance of expenditure u/s 43B of the Act amounting to Rs 9,30,705/-.
4. At the very outset, the ld. counsel for the assessee submitted vehemently that such prima facie adjustments wrongly made has resulted into reduced carry forward loss and the adjustments made are for the typographical error made while filing the Tax Audit Report by the staff of the Auditor whereby the column wrongly chosen was 26(i)(B)(b) instead of 26(i)(B)(a) despite the fact that the assessee has disagreed to the proposed adjustments u/s 143(1)(a) vide reply dated
15.12.2022. 5. The ld AR further stated that adjustments/additions as made to the returned income as reflected in the intimation are beyond the power of the Revenue under Rule 8 of the Scheme notified by the Central Board
[A.Y. 2022-23]
of Direct Taxes u/s 143(1A) viz. Centralized Processing of Returned
Scheme, 2011. The Rule 8 of Centralized Processing of Returned
Scheme, 2011 says
"a). receipt and processing of electronic rectification applications in the Centre; b). the address or place, the mode and the period or the extended period within which the acknowledgement is Form ITR-V shall be accepted; c). validating any software used for e-filing the return; d). call centers to answer queries and provide taxpayer services which may include outbound calls to persons requesting for clarification to assist in the processing of this return of income; and e). managing tax administration functions such as receipt, scanning, data, entry, processing, issue of refunds storage and retrieved of income tax returns and documents in a centralized manner or receipt of paper documents through authorized intermediaries.
The ld. counsel for the assessee continued by saying that the Assessing Officer, CPC, Bangalore, has made the disallowance without calling for necessary documentation and relying merely on the Tax audit report filed by the assessee. The disallowance thus made is against the principles of natural justice and needs to be quashed since the intimation about the adjustments/ additions as made to the returned income, are beyond the scope of the CPC. [A.Y. 2022-23] 8. We have heard the rival submissions and have perused the relevant material on record. Before us the assessee has filed the reconciliation which shows that deposit of Rs 57,952/-; Rs 6,18,078/-; Rs 81,381/- and Rs 1,73,298/- were deducted and paid in the month of April 2022 itself. We find substance in the assessee’s argument that there is a clerical mistake in filling Form No. 3CA where the assessee has wrongly entered the amount in wrong column. For this clerical mistake, we find that the assessee should not be punished with disallowance. We also find that there is no need to send the matter to the file of the Assessing Officer for verification as the same is a clerical mistake and the payment details have been produced before us clearly show that it was clerical mistake on the part of the assessee. In that view of the matter, we direct the Assessing Officer to delete the addition made u/s 143(1) of the Act. The grounds of appeal is allowed. 9. In the result, the appeal of the assessee in ITA No. 4730/DEL/2024 is allowed. [A.Y. 2022-23] The order is pronounced in the open court on 19.09.2025. [MADHUMITA ROY]
[NAVEEN CHANDRA]
JUDICIAL MEMBER
ACCOUNTANT MEMBER
Dated: 19th SEPTEMBER, 2025. VL/