AGNORMS HOSPITALS PVT. LTD., VELLORE V. ADIT CPC, VELLORE

ITA 85/CHNY/2023

AI Insights

The case involves M/s. Agnorms Hospitals Pvt. Ltd., the appellant, contesting adjustments made to their income tax return for the assessment year 2019-20 by the Central Processing Centre (CPC), Bengaluru. The primary issues were the disallowance of late payment of ESI & EPF and the denial of deduction under section 10JJAA of the Income Tax Act. The Tribunal found the first issue in favor of the revenue, citing a Supreme Court decision, but ruled in favor of the appellant regarding the deduction under section 10JJAA, directing the Assessing Officer to allow the deduction as per the amended provisions effective from April 1, 2021.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134378 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 25-06-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 24-01-2023
• Other Referred Cases: Checkmate Services P. Ltd. Vs CIT, M/s. Electrical India & Ors. Vs. ADIT, CPC, Bengaluru
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(1)

Judgement Text

आयकर अपीलीय अिधकरण “सी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा एवं माननीय ी मनोज कु मार अ%वाल ,लेखा सद( के सम । BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.85/Chn y/2023 (िनधा)रण वष) / As sessment Year: 2019-20) M/s. Agnorms Hospitals Pvt.Ltd 44, (Old No,87) Arcot Road Sathuvachari, Vellore-632 009. बनाम / V s . ADIT, CPC Bengaluru. थायीलेखासं./जीआइआरसं./PAN/GIR No. A AG C A-29 80- G (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : None थ कीओरसे/Respondent by : Shri P.Sajit Kumar (JCIT)- Ld. DR सुनवाईकीतारीख/Date of Hearing : 26-06-2023 घोषणाकीतारीख /Date of Pronouncement : 26-06-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. At the time of hearing, none appeared for the assessee. However, upon perusal of case records, we find that assessee’s return of income was processed by the CPC u/s.143(1) vide order dated 22-10-2020 wherein certain adjustments were made. One of the adjustments was disallowance of late payment of ESI & EPF as reported by the tax auditor. The Ld. CIT(A) upheld the same against which the assessee is in further appeal before us. We find that this issue is now covered in favor of revenue by the recent decision of Hon'ble Supreme Court in the 2 ITA No.85/Chny/2023 case of Checkmate Services P. Ltd. Vs CIT (Civil Appeal No.2833 of 2016 dated 12.10.2022). This adjustment could be made u/s 143(1) as per the decision of this Tribunal in M/s. Electrical India & Ors. Vs. ADIT, CPC, Bengaluru (ITA No.789/Chny/2022 dated 04-11-2022). Therefore, we find no reason to interfere in the impugned order, on this issue. The corresponding grounds raised by the assessee stand dismissed. 2. The second grievance of the assessee is denial of deduction u/s 10JJAA. The same was denied since the assessee did not file mandatory report in form No.10DA. The Ld. CIT(A) directed Ld. AO to allow this deduction in terms of the said section read with Rule 19AB. We find that the amendment to Sec. 143(1)(a)(v) empowering such an adjustment u/s 80JJAA has come into effect by the Finance Act, 2021 w.e.f. 01-04-2021 only. Therefore, no such an adjustment could have been made prior to that while processing the return of income. The Ld. AO / CPC is directed to grant this deduction. The levy of surcharge, cess and interest is merely consequential and mandatory in nature and therefore, no adjudication is required in that respect. 3. The appeal stand partly allowed in terms of our above order. Order pronounced on 26 th June, 2023 Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा23 / VICE PRESIDENT लेखा सद5 / ACCOUNTANT MEMBER चे7ई Chennai; िदनांक Dated :26-06-2023 DS आदेश क त ल प अ े षत/Copy to: 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकर आयु?/CIT 4. िवभागीय ितिनिध/DR 5. गाडD फाईल/GF