DAS GARAGE P.LTD,MEERUT V. DCIT, CIRCLE-1(1)(1), MEERUT

ITA 2353/DEL/2022

AI Insights

The case involves Das Garage P. Ltd, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, which upheld the addition of Rs 15,00,000 under section 43B of the Income-tax Act, 1961. The addition was initially made by the Assessing Officer, DCIT, Circle-01(1)(1), Meerut, on the grounds that the bonus was not paid before the due date of filing the return of income under section 139(1) of the Act. The assessee contended that the bonus was indeed paid within the stipulated time, a fact that was to be verified by the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314351 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: K. SAMPATH
• Section: 43B

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 2353/Del/2022 (Assessment Year: 2018-19) Das Garage P. Ltd, 170/171A, Das Building, Abu Lane, Meerut Vs. DCIT, Circle-1(1)(1), Meerut (Appellant) (Respondent) PAN: AAACD5028N Assessee by : Shri K. Sampath, Adv Shri V. Rajkumar, Adv Revenue by: Shri Rajesh Kumar Dhanesta, Sr. DR Date of Hearing 08/04/2025 Date of pronouncement 07/05/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.2353/Del/2022 for AY 2018-19, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] in Appeal No. ITBA/NFAC/S/250/2022- 23/1043940559(1) dated 20.07.2022 against the order of assessment passed u/s 143(1) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 02.07.2019 by the Assessing Officer, DCIT, Circle01(1)(1), Meerut (hereinafter referred to as ‘ld. AO’). 2. The only effective issue to be decided in this appeal whether the Learned CITA was justified in upholding the addition made by the learned AO in the sum of Rs 15,00,000/- under section 43B of the Act in the facts and circumstances of the instant case. ITA No. 2353/Del/2022 Das Garage P. Ltd Page | 2 3. We have heard the rival submissions and perused the materials available on record. The assessee debited a sum of Rs 15 lakhs on account of bonus during the year under consideration and reflected the same in the balance sheet as payable since it has been paid in the subsequent year. The auditor had mentioned the said sum of Rs 15 lakhs in Column No. 26(i)(B)(b) of the tax audit report dated 30-8-2018. Based on this reflection in the tax audit report, the learned AO concluded that this bonus was not paid before the due date of filing the return of income under section 139(1) of the Act. Accordingly disallowance was made under section 43B of the Act by the learned AO, which stood confirmed by the learned CITA. Before us, the learned AR pleaded that the bonus was indeed paid before the due date of filing the return of income under section 139(1) of the Act itself which fact could be subjected to verification by the learned AO. No objection was raised by the learned DR in this regard. Accordingly, we deem it fit and appropriate, to restore this issue to the file of learned AO for the limited purpose of verification of the fact as to whether the bonus was paid before the due date of filing the return of income under section 139(1) of the Act by the assessee company. If it is so, then the assessee would be entitled for deduction under section 43B of the Act. With these directions, the ground raised by the assessee is allowed for statistical purposes. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 07/05/2025. -Sd/- -Sd/- (SATBEER SINGH GODARA) (M BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 07/05/2025 A K Keot Copy forwarded to ITA No. 2353/Del/2022 Das Garage P. Ltd Page | 3 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "