Scrutiny Assessment Prevails Over Automated Disallowance by CPC

Sigma Electric Manufacturing Corporation Private Limited Vs ITO (ITAT Pune) The case involved Sigma Electric Manufacturing Corporation Private Limited, which had filed its income tax return for Assessment Year 2020-21. The return was initially processed by the CPC under Section 143(1)(a) of the Act, leading to a disallowance of Rs. 18,48,488/-. This disallowance was made on the grounds of alleged non-deduction of tax at source (TDS) on payments made to two foreign entities, M/s. UL LLC and CSA Group Testing & Certification Inc. The CPC’s adjustment stemmed from observations noted in ...