Case Law Details
SVS Guarding Services Pvt. Ltd. Vs ITO (ITAT Delhi)
Facts- The only addition in dispute in this appeal is regarding the additions amounting to total of Rs. 29,52,674/- made u/s 36(1)(va) of Income Tax Act. These payments by way of employees’ contribution to ESI/Provident Fund were deposited by the assessee after the specified date prescribed under the relevant laws governing ESI and Provident Fund. However, payments were deposited by the assessee well before due date of filing of return of income under Section 139(1) of Income Tax Act. The aforesaid additions totaling Rs. 29,52,674/- were made by way of adjustments u/s 143(1) of Income Tax Act; vide intimation dated 14.11.2019. The assessee filed appeal before Ld. CIT(A), which was disposed of by the Ld. CIT(A) vide impugned appellate order dated 03.12.2021; wherein the Ld. CIT(A) confirmed the aforesaid additions amounting to Rs. 29,52,674/-. In coming to this conclusion, the Ld. CIT(A) took the view that the amendment to section 43B of Income Tax Act (by insertion of Explanation-5); and amendment to section 36(1)(va) of Income Tax Act, (by insertion of Explanation -2) by Finance Act, 2021 are retrospective in nature, and are applicable for Assessment Year 2018-19 to which the present case pertains.
Aggrieved, the assessee has filed this present appeal in ITAT against the aforesaid impugned appellate order dated 03.12.2021 of the Ld. CIT(A).
Conclusion- We are of the view that the additions of Rs.29,52,674/- by way of adjustment and intimation u/s 143(1) of Income Tax Act, were beyond the scope of Section 143(1) of Income Tax Act; and further, that the Ld. CIT(A) erred in law in confirming the aforesaid addition on a debatable and controversial issue. Accordingly, we set aside the impugned appellate order dated 03.12.2021 of the Ld. CIT(A), and direct the Assessing Officer to delete the aforesaid addition of Rs. 29,52,674/-.
It is well settled that any adjustments u/s 143(1) of Income Tax Act by way of intimation u/s 143(1) of Income Tax Act, on debatable and controversial issues, is beyond the scope of Section 143(1) of Income Tax Act.
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