DCIT, CIRCLE-3, THANE, THANE V. PAN GULF TECHNOLOGIES PRIVATE LIMITED, THANE

ITA 1747/MUM/2025

AI Insights

The case involves the Deputy Commissioner of Income Tax (DCIT), Circle-3, Thane as the appellant and Pan Gulf Technologies Pvt. Ltd. as the respondent. The primary issue in the appeal was the deletion of an addition made under section 143(1) of the I.T. Act by the CIT(A), which the Revenue contended was done without remanding the matter back to the Assessing Officer (AO) for verification of new evidences related to payments under section 43B. The CIT(A) had accepted the appellant's claim that certain payments were made before the filing of the revised return, thus allowing deductions under section 43B. The ITAT found that the AO had not verified these claims and remanded the matter back to the JAO for verification of the payment dates.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314096 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: MAHESH BHRKE; CHETAN M. KACHA
• Keywords: Revised return
• Section: 43B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JM & SHRI OMKARESHWAR CHIDARA, AM I.T.A. No. 1747/Mum/2025 (Assessment Year: 2023-24) DCIT, Circle-3 Ashar IT Park 6th Floor, B Wing Room No. 02, Road No. 16Z, Wagle Industrial Estate, Thane West Mah-400 604. Vs. Pan Gulf Technologies Pvt. Ltd. 6th Floor, A wing, Pokhran Road 2 Behind TCS Lodha Link Think Techno Campus, Thane West Mah. – 400 607. PAN : AACCP5193N Appellant) : Respondent) Appellant /Assessee by : Shri Mahesh Bhrke Revenue / Respondent by : Shri Chetan M. Kacha Date of Hearing : 24.04.2025 Date of Pronouncement : 05.05.2025 O R D E R Per Omkareshwar Chidara, AM: The only ground of appeal raised by the Revenue in this case is that the appellant filed certain evidences relating to payments made under section 43B of the I.T. Act before the Ld. CIT(A) for the first time and the Ld. CIT(A) has not remanded the matter back to the Ld. AO for verification. Without calling for the remand of Ld. AO, the Ld. CIT(A) has deleted the addition made by CPC under section 143(1), is the grievance of Revenue in this appeal. 2. During the appeal proceedings before the ITAT, the Ld. AR has contended that Rule 46A of the I.T. Rules was violated and the Ld. AO (in this case CPC) 2 was not given opportunity before allowing the deduction under section 43B of the I.T. Act. 3. The Ld. AR opposed the plea and submitted a paper book during the hearing before the ITAT (which contains the details of payments made relating to bonus/incentive to employees and gratuity, before filing the revised return of income and hence disallowance under section 43B cannot be made and Ld. CIT(A) has correctly deleted the addition made by CPC. 4. Heard both sides. The contention of Ld. CPC, AO in this case, is that the appellant company did not pay the bonus, incentives and gratuity before filing original return of income as mentioned in the Tax Audit based on which CPC disallowed the expenditure under section 43B. But the contention of appellant company is that this expenditure claimed was paid before filing return of income which was not verified by Ld. AO. Prima facie, it appears that the appellant company has paid the amounts before the due date as mentioned by Ld. CIT(A), but the same was not verified by CPC. The matter is remanded to the Ld. AO, as contended by Revenue and the same is remanded only to this limited extent. The issue is remitted for examination by Jurisdictional Assessing Officer (JAO) and he is directed to delete the additions, if the expenditure claimed was paid within the due date. 5. The appeal of the Revenue is allowed for statistical purposes. Order pronounced in the open court on 05-05-2025. Sd/- Sd/- (SANDEEP GOSAIN) (OMKARESHWAR CHIDARA) Judicial Member Accountant Member PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3 3. DR, ITAT, Mumbai 4. 5. Guard File CIT BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai Sr. No. Details Date Initial Designation 1 Draft dictated on PC 29.4.2025 Sr.PS/PS 2 Draft Placed before author 30.4.2025 Sr.PS/PS 3 Draft proposed & placed before the Second Member Sr.PS/PS 4 Draft discussed/approved by Second Member JM/AM 5 Approved Draft comes to the Sr.PS/PS JM/AM 6 Order pronouncement on .5.25 Sr.PS/PS 7 File sent to the Bench Clerk .5.25 Sr.PS/PS 8 Date on which the file goes to the Head clerk Sr.PS/PS 9 Date on which file goes to the AR 10 Date of Dispatch of order "