Demand raised on issue u/s. 143(1)(a) to be modified as claim allowed in scrutiny assessment

Pramod Telecom Pvt. Ltd. Vs DCIT/ACIT-3 (ITAT Lucknow)

ITAT Lucknow held that claim has been allowed by AO in scrutiny proceedings u/s 143(3) of the Act, it was natural that the demand raised on the same issue under section 143(1)(a) of the Act is required to be modified. Accordingly, appeal partly allowed.

Facts- The assessee company filed a return of income on 30.10.2018 which was processed u/s. 143(1)(a) vide order dated 2.10.2019 by making adjustments towards inconsistency in provision of payment of gratuity u/s. 40A(7) of the I.T. Act of Rs.49,17,636/-

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