Assessee paid certain compensation in favour of a hospital and claimed same as expenditure.  Compensation was remitted for violation of patents/trademarks. Assessing Officer issued intimation calling for tax audit report. Pursuant to which it was noted by Assessing Officer under clause No. 21(a) of Form 3CD that certain amount was listed under entry of expenditure by way of penalty or fine for violation of law. Assessing Officer proposed adjustment for said amount on ground that same was not disallowed by assessee while filing return.Thereafter, adjustment was made under section 143(1).CIT(A) affirmed the order of Assessing Officer. On appeal the  Assessee contended that Assessing Officer failed to pass speaking order.  Tribunal held that the  adjustment was made on basis of entry made by tax auditor of assessee and omission noticed in returned income by Assessing Officer and the  Assessing Officer communicated proposed adjustment and thereafter, passed intimation order along with reasons of adjustment duly specified as part of intimation order.   Tribunal held that under intimation authority of Assessing Officer is limited to carry out adjustment based on return of income and document provided.  since tax auditor had categorized said amount as penalty, amount was prima facie disallowable under section 143(1)(a)(iv) and thus, Assessing Officer was not required to pass a speaking order for said adjustment made in strict terms. However as claim of assessee that said expenditure was not for any purpose which was an offence or prohibited by law was not examined by Commissioner (Appeals), it was appropriate to restore this issue back to file of Commissioner (Appeals) for deciding afresh on merit of addition. (AY. 2019-20)