CPC has No Jurisdiction of Prima-Facie Adjustment u/s 143(1) of Income Tax Act when there are Judicial Decisions favouring Assessee: ITAT [Read Order]
![CPC has No Jurisdiction of Prima-Facie Adjustment u/s 143(1) of Income Tax Act when there are Judicial Decisions favouring Assessee: ITAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/05/CPC-Jurisdiction-Prima-Facie-Adjustment-Income-Tax-Act-Assessee-ITAT-taxscan.jpg "CPC has No Jurisdiction of Prima-Facie Adjustment u/s 143(1) of Income Tax Act when there are Judicial Decisions favouring Assessee: ITAT [Read Order]")
The Income Tax Appellate Tribunal (ITAT), Mumbai bench has held that the Centralized Processing Centre has no jurisdiction to exercise the power under section 143(1) of the Income Tax Act, 1961 when there are High Court decisions in favour of the assessee. The assessee, Rajkumar Laxminarayan Kanojiya approached the Tribunal against the order of the Commissioner of Income Tax (Appeals),...
The Income Tax Appellate Tribunal (ITAT), Mumbai bench has held that the Centralized Processing Centre has no jurisdiction to exercise the power under section 143(1) of the Income Tax Act, 1961 when there are High Court decisions in favour of the assessee.
The assessee, Rajkumar Laxminarayan Kanojiya approached the Tribunal against the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi confirming the action of AO of disallowing employees contribution to PF, ESIC and MLWF of Rs.18,31,226/-u/s 36(1)(va).
Shri Shamim Yahya (AM) observed that prior to the amendment there were Hon'ble Bombay High Court decision in CIT Vs. Ghatge Patil Transport Pvt. Ltd. following Hon'ble Supreme Court decision in Alom Extrusions Ltd. which laid down that deposits of the sum up to the date of filing of return is sufficient compliance.
“The Finance Act, 2021 has provided an explanation in this regard for the disallowance of the sum which is paid after the due date. When this fact is taken into account by no stretch of imagination it can said that the above said adjustment can fall under the category of 143(1) prima-facie adjustment. Hence, I hold that CPC has no jurisdiction of adjustment u/s. 143(1) on this issue where admittedly there were decisions in favour of the assessee from the Hon’ble High Courts and the legislature has brought in an Explanation by Finance Act, 2021 in this regard subsequently.,” the Tribunal said.
Ruling in favour of the assessee, the Tribunal added that “Moreover, as regards, merits of the case the aforesaid explanation was added by Finance Act, 2021 and the said explanation in my considered opinion cannot be said to be retrospective. The assessment year during the present case is AY 2018-19 and is prior to the said amendment/insertion. Hence, on merits also, the issue is covered in favour of the assessee as before the amendment, there were decisions of Hon’ble Bombay High Court and Hon'ble Supreme Court in favor of assessee on the said issue.”
To Read the full text of the Order CLICK HERE
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