Answer

1. F

   Facts

   If the tax audit report shows an amount as disallowable and the return does not add it back, CPC can propose the addition. If you paid the dues before the return due date, the deduction is generally allowed and the audit report may need explaining. Your reply must show the dates of payment.

2. P

   Provisions and law

   • Sec 143(1)(a) (now Sec 270(2))CPC can adjust the return for listed reasons, but must first tell you and consider a reply given within 30 days
   • Sec 44AB (now Sec 63)Tax audit where turnover or receipts cross the limits
3. A

   Analysis

   Sec 143(1)(a)(iv) covers expenditure the auditor has reported as disallowable that the return did not disallow. For statutory dues like bonus, the deduction is allowed if paid by the return due date, so if ₹1,50,000 bonus was paid before the due date, Disagree and give the payment dates. Employees' PF contributions are different: they must be deposited by the PF due date to be allowed. If the auditor's figure was simply wrong, get a short confirmation from the auditor and consider a revised audit report.

4. C

   Conclusion

   1. 1Pull the clause in Form 3CD that reports the amount.
   2. 2Collect challans with dates for each payment.
   3. 3Disagree for amounts paid in time, giving dates and challan numbers.
   4. 4Agree for amounts that were genuinely paid late.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.