CLINISYS (INDIA) PRIVATE LIMITED,KOLKATA V. DCIT, CIRCLE 1(1), , KOLKATA

ITA 567/KOL/2025

AI Insights

The case involves Clinisys (India) Private Limited appealing against the order of the Commissioner of Income-tax (Appeals) which confirmed the disallowance of \\u20b930,80,401 by the Assessing Officer (CPC) under section 143(1) of the Income Tax Act. The disallowance pertained to leave encashment paid during the year in respect of prior years. The assessee had initially disallowed a part of the provision for leave encashment while filing the return, but the AO added the entire amount paid during the year to the income of the assessee. The CIT(A) upheld the AO's decision, leading to the appeal before the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772423 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR PATI
• Assessee Lawyers: SOUMITRA CHOUDHURY
• Keywords: Set aside
• Section: 43B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRIPRADIP KUMAR CHOUBEY, JM ITA No.567/KOL/2025 (Assessment Year:2022-23) Clinisys (India) Private Limited Adventz Infinity @5, 8th floor, Unit 804-807, Plot -5, Block-BN, Saltlake Sector-V, Kolkata-700091 West Bengal Vs. DCIT, Cir 1(1) P-7, Chowringhee Square, Kolkata-700069, West Bengal (Appellant) (Respondent) PAN No. AAGCA7623 Assessee by : Shri Soumitra Choudhury, AR Revenue by : Shri Manoj Kumar pati, DR Date of hearing: 17.07.2025 Date of pronouncement: 26.08.2025 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals) ADDl/JCIT (A)-2, Gurugram(hereinafter referred to as the “Ld. CIT(A)”] dated 23.01.2025 for the AY 2022-23. 02. The only issue raised in various grounds of appeal is against the confirmation of disallowance of ₹ 3,80,401/- by ld. CIT (A) as made by the ld. AO (CPC) in the order passed under section 143(1) in respect of leave and encashment paid. Printed from counselvise.com Page | 2 ITA No.567/KOL/2025 Clinisys (India) Private Limited; A.Y. 2022-23 03. The facts in brief are that during the year the assessee has created a provision for leave encashment of ₹32,98,103 and also paid leave encashment during the year in respect of prior years to the tune of ₹3,80,401/- meaning thereby disallowing only ₹29,17,702/-, suo motto while filing the return of income in Para 11 (F) which deals with the amount debited to the Profit and Loss account in the previous year but disallowance u/s 43B of the Act was made. In other words, the assessee itself disallowed ₹29,17,702. However, the ld. AO(CPC) while processing the return of income added the amount paid by the assessee during the year to the income of the assessee. 04. In the appellate proceedings, the ld. CIT (A) also confirmed the order of the Learner AO by holding that assessee himself has shown in the Tax Audit Report in Form 3CD at serial number 26B(b), an amount of ₹32,98,103/- was not paid on or before the stipulated date. However, whereas the amount disallowed under Section 143Bof the Act was only ₹29,17, 702.The ld. CIT (A) further noted that assessee has not submitted any documenting evidences in the form of challans or books of accounts or any other relevant documents regarding payments of Leave encashment before filing the return of income. Therefore, the ld. AO (CPC) has correctly made the addition. 05. After hearing the rival contentions and perusing the materials available on record, we find that the assessee has categorically sated in the computation of income attached to the ITR that out of the total provisions created during the year of ₹32,98,103/-, the assessee has adjusted ₹3,80,401/- on account of payment of leave encashment during the year in respect of prior years. Therefore, we find merit in the contention of the assessee that the ld. AO / CPC has no Printed from counselvise.com Page | 3 ITA No.567/KOL/2025 Clinisys (India) Private Limited; A.Y. 2022-23 jurisdiction to disallow the actual payment against leave encashment during the year in respect of prior years. Accordingly, we set aside the order of the ld. CIT (A) and direct the ld. AO to delete the addition. 06. In the result, the appeal of the assessee is allowed Order pronounced in the open court on 26.08.2025. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated:26.08.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. Printed from counselvise.com "