INCOME TAX ACT, 1961

Section 143(1)

Assessment - Adjustment on account of non-deduction of tax or non-depositing of tax deducted at source by assessee - Effect of regular assessment and section 143(3) -

Assessee-company filed its return of income for relevant assessment year. The said return was processed by CPC under section 143(1), whereby an adjustment was made on account of non-deduction of tax or non-depositing of tax deducted at source by the assessee. Assessee submitted that in majority of cases, the tax deducted at sources, was paid on due date of filing of return of income, i.e. 31-10-2018. However, CIT(A) confirmed the adjustment made by the CPC. Held: CIT(A) confirmed the adjustment made by CPC, on the ground that payment made on 31-10-2018 was not within the statutory time limit. It appeared that the CIT (A) took statutory time limit for depositing tax at sources as per provisions of Chapter XVII, instead of considering disallowances under section 43B and under section 40(a)(ia), which provides the payment on or before due date of filing under section 139(1). Further, case of the assessee was subsequently selected for scrutiny and AO already passed scrutiny assessment order under section 143(3). Considering the fact that the case of the assessee was subsequently taken up for scrutiny assessment and assessment order under section 143(3) passed, the order passed under section 143(1) stood merged with the scrutiny assessment order and therefore, appeal proceedings against the processing and adjustment made by the CPC, became infructuous. Consequently, order of the CIT(A)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2018-19

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