Proposed adjustment u/s 143(1)(a)

This query is : Resolved

JohnR (Querist)
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16 January 2020 In 3CD tax auditor has included TDS interest in disallowance but while filing return in computation interest on TDS is not added back because as per various case laws its allowable expense.so notice regarding proposed adjustment u/s 143(1)(a) is received for Proposed adjustment
to total income.

How to proceed in this?

CA Reshmi Greeting Kumar

CA Reshmi Greeting Kumar (Expert)
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17 January 2020 Hi John, Its right that Interest on TDS is an allowable expense u/s 37(1). You can respond to the notice u/s 143(1)(a) through the Income tax website itself. Once you login to the website using the credentials, you will be able to trace the same notice which you have received in the website too. And there you will get the option either to agree or disagree on the disallowance and you can proceed accrodingly.

Refer the case law - D.C.I.T Vs M/s. Rungta Mines Ltd (ITAT Kolkata)
Regards,
Reshmi