Shakti Apifoods Private Limited, Sangrur V. ADIT,CPC/ DCIT-Circle-IV, Ludhiana

ITA 272/CHANDI/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0294 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 07-10-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NAVNEET SEHGAL
• Section: 139

Judgement Text

आयकर य कर , य य “ब ”, IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B’, CHANDIGARH BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER ITA No. 272/Chd/2021 (Assessment Year: 2019-20) Shakti Apifoods Private Limited. Malerkotla Road, Sangrur. बनाम The Assessing Officer, Circle-IV(1), Ludhiana. थायी लेखा सं./PAN NO: AAMCS8546C नधा रती क ओर से/Assessee by: Shri Navneet Sehgal, CA. राज व क ओर से/ Revenue by : Dr.Ranjit Kaur, Sr.DR स ु नवाई क तार ख/Date of Hearing: 04.01.2022 उदघोषणा क तार ख/Date of Pronouncement: 11.01.2022 (Hearing through Webex) आदेश/ORDER Per Vikram Singh Yadav, Accountant Member: This is an ap peal filed b y the asses se e aga inst t he or der of Lear ned Commis sioner of I ncom e Tax ( A p p e a l s ) , N a t i on a l F a c e l e s s A p p e a l C e n t r e ( N F A C ) , D e l h i [ i n s h o r t t h e ‘ L d . C I T( A ) ’ ] p assed u/s 25 0 of the Income Ta x Act, 196 1 (in shor t ‘the Act ’) da ted 12.0 9.2 021 for a ssessme nt year 2019-2 0, whe rein the a sse ssee has ta ken the fol low ing revised grounds: “1. That the prejudicial observations made in the appellate order and the assessment order are either unfounded or the same are not susceptible of giving rise ITA No.272/Chd/2021 A.Y.2019-20 2 to any adverse conclusion. 2. That the Learned Commissioner of Income tax (Appeals) has grossly erred in confirming the addition of Rs. 368124/- on account of late deposit of Employees Contribution to ESI and EPF on the basis of conjectures, surmises and without appreciating the facts of the case and the provisions of the Act as applicable during the financial year relevant to the assessment year and on date of filing of Income Tax Return. The addition merits deletion. 3. That the action of the Learned Commissioner of Income tax (Appeals) in confirming the addition of Rs. 368124/- on account of late deposit of Employees Contribution to ESI and EPF is arbitrary, unwarranted and uncalled for. The addition merits deletion. 4. That the Learned Commissioner of Income tax (Appeals) has grossly erred in confirming the addition of Rs. 11142171- on account of provision for gratuity without considering the documents on record amounting to double taxation and the facts of the case. The addition merits deletion. 5. That the action of the Learned Commissioner of Income tax (Appeals) in confirming the addition of Rs. 11142177- on account of provision for gratuity amounting to double taxation is arbitrary, unwarranted and uncalled for. The addition merits deletion. 6. That the appellant reserves the right to add, alter or amend grounds of appeal.” 2 . B r ie f l y , t he f a c t s o f t he c a se a r e t h a t t he a s se s s e e f i l e d i t s r e t u r n o f i n c om e o n 2 6 . 0 9 . 2 0 1 9 d e c l a r i n g t o t a l i n c o m e o f R s . 7 8 , 2 8 , 8 7 9 / - , w h i c h w a s p r o c e s s e d u / s 1 4 3 ( 1 ) o f th e A c t a n d i n t e r m s o f i n t i m a t i o n u / s 1 4 3 ( 1 ) d a t e d 2 7 . 0 2 . 20 2 0 i s s u e d b y C P C , h a d m a d e d i s a l l o w a n c e o f R s .3 , 6 8 , 1 2 4/ - t o w a r d s l a t e d e p o s i t o f e m p l o y e e s ’ c o n t r i b u t i o n t o E S I & P F ITA No.272/Chd/2021 A.Y.2019-20 3 a n d a n a m o u n t o f R s . 1 1 , 1 4 , 2 1 7 / - o n a c c o u n t o f p r o v is i o n f o r g r a t u i t y . 3 . O n a p p e a l , t he L d . C I T( A ) , N F A C h a s c o n f i r m e d b o th t h e d i s a l l o w a n c e s a n d a g a i n s t t h e s a i d o r d e r , t h e a s s e ss e e h a s n o w c o m e u p i n a p p e a l b e f o r e u s . 4 . D u r i n g t h e c o u r s e o f he a r i n g , t h e L d . A R s u b m i t te d t h a t t h e a s se s se e h a s d e p o s i te d e m p l o y e e s ’ c on t r i b ut i o n t o w a r d s E S I a n d P F t h o u g h w i t h t h e de l a y o f f e w d a ys f r o m t h e d ue d a t e m e n t i o n e d i n t he r e s p e c t i ve S t a t u t e s, h o w e ve r , t h e s a m e w a s d e p o s i t e d w e l l b e f or e t h e d u e d a te o f f i l i n g o f r e t u r n o f i n c o m e u / s 1 3 9 ( 1 ) o f t h e A c t . I t w a s s u b mi t t e d t h a t t h e s a i d f a c t i s n o t u n d e r d i s p u t e a n d w h e r e su c h c o n t r i b u t i o n h a s b e e n de p o s i te d be f o r e t h e d u e d a te o f f i l i n g o f t h e r e t u r n o f i n c o m e , n o d i s a l l o w a n c e u / s 3 6 ( 1 ) (v a ) o f t h e A c t c a n b e m a d e . I n s u p p o r t , r e l i a n c e w a s p l a c e d o n d e c i s i o n o f t h e H o n ' b l e P u n j a b & H a r y a n a H i g h C o u r t i n t h e c a s e o f C I T V s . H e m l a E m b r o i d e r y M i l l s ( P ) L t d . , 36 6 I TR 1 1 7 a n d t h e d e c i s i o n o f t h e H o n 'b l e S u p r e m e C ou r t in t h e c a s e o f C I T V s . A l o m E x t r u s i o n L t d . , 3 1 9 I TR 3 0 6 . It w a s f u r t h e r s u b m i t t e d t h a t t h e a f o r e s a i d d e c i s i o n s ha v e s i n c e b e e n f o l l o w e d b y t h e H o n ' b l e P u n j a b & H a r y a n a H i g h C o u r t i n t h e c a s e o f C I T V s . M a r k A u t o I n d u s t r ie s L t d . , 35 8 I TR 4 3 , C I T V s . K a m a l F a m i l y Tr u s t ( 2 0 1 3 ) , 2 1 9 Ta x m a n 81 a n d ITA No.272/Chd/2021 A.Y.2019-20 4 C I T V s . N u c h e m L i m i t e d , 5 9 Ta x m a n n . c o m 4 5 5 . I t w a s s u b m i t t e d t h a t t h e L d . C I T( A ) h a s r e l i e d u p o n t h e a m e n d m e n t b r o u g h t i n b y t h e F i n a n c e A c t , 2 0 21 w h e r ei n E x p l a n a t i o n - 5 h a s b e e n i n s e r te d . I t w a s s u b m i t t e d th a t th e s a i d a m e n d m e n t h a s b e e n i n se r t e d w .e . f . a s se s s m e n t y e a r 2 0 2 1 - 2 2 o n w a r d s a n d h a v e t o b e r e a d p r o s p e c t i ve ly an d n o t r e t r o s p e c t i ve l y a n d v a r i o u s B e nc h e s o f t h e Tr i b u n a l h a s b e e n t a k i n g a c o n s i s t e n t v ie w i n t h i s re g a r d a n d o ur r e fe r e n c e w a s d r a w n t o t h e d e c i s i o n o f t h e C h a n d i g ar h B e n c h e s o f t h e Tr i b u n a l i n t h e c a s e o f M / s C z a r s F au c e t s L i m i t e d V s . C P C i n I TA N o . 2 5 5 / C h d / 2 0 2 1 d a t e d 0 2 . 1 1 .2 0 2 1 w h e r e i n t he r e l e v a n t f i n d i n g s r e a d a s u n d e r : “ 4 . W e h a v e h e a r d t h e s u b m i s s i o n s a n d p e r u s e d t h e m a t e r i a l a v a i l a b l e o n r e c o r d . I t i s s e e n t h a t i n t h e p r e s e n t a p p e a l , t h e a s s e s s e e h a s o n l y a s s a i l e d t h e d i s a l l o w a n c e s u s t a i n e d b y t h e C I T ( A ) v i d e h i s o r d e r p a s s e d u / s 2 5 0 ( 6 ) o f t h e A c t a m o u n t i n g t o R s . 4 , 5 2 , 2 3 1 / - o n t h e g r o u n d s t h a t t h e E S I & P F p a y m e n t s w e r e n o t m a d e w i t h i n t i m e a s p e r t h e r e l e v a n t S t a t u t e . T h e c l a i m o f t h e a s s e s s e e t h a t t h e p a y m e n t s w e r e m a d e b e f o r e t h e d u e d a t e o f f i l i n g o f t h e r e t u r n u / s 1 3 9 ( 1 ) w a s h e l d t o b e n o t r e l e v a n t . I t i s s e e n t h a t t h e s a i d i s s u e a s f a r a s t h e p r e s e n t F o r u m i s c o n c e r n e d , s t a n d s f u l l y c o v e r e d i n f a v o u r o f t h e a s s e s s e e n o t o n l y b y t h e c o n s i s t e n t o r d e r s o f t h e v a r i o u s B e n c h e s o f t h e I T A T n a m e l y ; t h e o r d e r d a t e d 0 3 . 0 8 . 2 0 2 1 o f t h e D e l h i B e n c h e s i n t h e c a s e o f I n s t a E x h i b i t i o n P v t . L t d . V s A C I T i n I T A 6 9 4 1 / D e l / 2 0 1 7 ; o r d e r d a t e d 0 1 . 0 7 . 2 0 2 1 o f t h e H y d e r a b a d B e n c h i n t h e c a s e o f C r e s c e n t R o a d w a y s P v t . L t d . V s D C I T i n I T A N o . 1 9 5 2 / H y d / 2 0 1 8 b u t a l s o c o n s i s t e n t o r d e r s o f t h e C h a n d i g a r h B e n c h . I t i s s e e n t h a t a l l a l o n g t h e C o - o r d i n a t e B e n c h e s h a v e h e l d t h a t t h e ITA No.272/Chd/2021 A.Y.2019-20 5 a m e n d m e n t s t o S e c t i o n s 3 6 ( 1 ) ( v a ) a n d u / s 4 3 B o f t h e I n c o m e T a x A c t e f f e c t e d b y t h e F i n a n c e A c t , 2 0 2 1 i s a p p l i c a b l e p r o s p e c t i v e l y a n d n o t r e t r o s p e c t i v e l y . W h i l e c o m i n g t o t h e s a i d c o n c l u s i o n , t h e B e n c h e s h a v e r e l i e d u p o n a n d r e a d f r o m t h e N o t e s o n C l a u s e s a t t h e t i m e o f i n t r o d u c t i o n o f t h e F i n a n c e A c t , 2 0 2 1 a n d h a v e h e l d t h a t t h e a m e n d m e n t i s a p p l i c a b l e i n r e l a t i o n t o t h e a s s e s s m e n t y e a r 2 0 2 1 - 2 2 a n d s u b s e q u e n t y e a r s a n d n o t r e t r o s p e c t i v e l y . T h u s , i n v i e w o f t h i s l e g a l p o s i t i o n a s c o n s i d e r e d b y t h e C o - o r d i n a t e B e n c h e s a n d t a k i n g n o t e o f t h e d e c i s i o n s o f t h e j u r i s d i c t i o n a l H i g h C o u r t i n t h e c a s e o f C IT V s N u c h e m L i m i t e d IT A 3 2 3 o f 2 0 0 9 a n d C I T V s H e m l a E m b r o i d e r y M i l l s P v t . L t d . ( 2 0 1 4 ) 3 6 6 I T R 1 6 7 we a r e o f t h e v i e w t h a t t h e a d d i t i o n s c a n n o t b e m a d e o r s u s t a i n e d o n t h e s t r e n g t h o f t h e a m e n d m e n t e f f e c t e d b y F i n a n c e A c t , 2 0 2 1 t o S e c t i o n s 3 6 ( 1 ) ( v a ) / 4 3 B o f t h e A c t a s t h e l e g a l p o s i t i o n t h e r e o n i s v e r y c l e a r . T h e d e p a r t m e n t a l s t a n d t h a t i t i s c l a r i f i c a t o r y i n n a t u r e h a s c o n s i s t e n t l y b e e n r e j e c t e d . T h u s , i n t h e f a c e o f t h e c l e a r l e g a l p o s i t i o n , a s s e t o u t h e r e i n a b o v e , w e f i n d t h a t t h e c l a i m o f t h e a s s e s s e e i s t o b e a l l o w e d i n t h e y e a r u n d e r c o n s i d e r a t i o n w h i c h i s 2 0 1 8 - 1 9 a s s e s s m e n t y e a r . T h e i m p u g n e d o r d e r , a c c o r d i n g l y , i s s e t a s i d e a n d t h e A O i s d i r e c t e d t o d e l e t e t h e d i s a l l o w a n c e . T h e a p p e a l o f t h e a s s e s s e e i s a l l o w e d . S a i d o r d e r w a s p r o n o u n c e d i n t h e p r e s e n c e o f t h e p a r t i e s v i a W e b e x . ” 5 . P e r c o n t r a , t h e L d . D R r e l i e d u p o n t h e a m e n d m e n t b r o u g h t i n b y t h e F i n a n ce A c t , 20 2 1 w h e r e i n E x p l a n at i o n t o s e c t i o n 3 6 ( 1 ) ( v a ) o f t h e A c t h a s b e e n i n t r o d u c e d . It w a s s u b m i t t e d t h a t f r o m t h e r e a d i n g of t h e s a i d a m e n d m en t i t i s e v i d e n t t h a t t h e l a w i s a n d h a s a l w a y s b e e n v e r y c le a r t h a t e m p l o y e e s ’ c o n t r ib u t i o n t o s p e c i f i e d f u n d w i l l n o t b e a l l o w e d a s d e d u c t i o n u / s 3 6 ( 1 ) ( v a ) o f t h e A c t i f t he re i s de l a y i n d e p o s i t e v e n b y a s i n g l e d a y a s p e r t h e d ue d a t e s sp e c i f i e d i n t h e r e s p e c t i ve S t a t u t e s . I t w a s f u r t h e r s u b m i t t ed t h a t t h e ITA No.272/Chd/2021 A.Y.2019-20 6 s a i d a m e n d m e n t i s o n l y d e c l a r a to r y / c l a r i f i c a t o r y i n n a t u r e a n d , i s , t h e r e f o r e , a p p l i c a b l e w i t h r e t r o s pe c t i ve ef f e c t b y n e c e s s a r y i n te n d m e n t o f d e e m i n g n a t u r e e x p r e ss l y s ta t e d t h e r e i n . Th e L d . D R a c c o r d i n g l y s u b m i t t e d t h a t i n vi e w o f t h e u n a m b i g u o u s w o r d i n g o f t h e n o w a m e n d m e n t p r o v i si o n s o f s e c t i o n s 3 6 ( 1 ) ( v a ) a n d 4 3 B , i t i s c l e a r t h a t t h e e m p l o y e e s’ c o n t r i b u t i o n c a n b e a l l o w e d a s a d e d u c t i o n o n l y i f i t h a d b e e n p a i d w i t h i n t h e p r e s c r i b e d d u e d a t e s u n d e r t h e r e le v a n t S t a t u te s a n d t h i s p o s i t i o n h a s b e e n c l a r i fi e d b y t h e a f o r e s a i d a m e n d m e n t . I t w a s a c c o r d i n g l y s u b m i t t e d th a t t h e r e i s n o i n f i r m i t y i n t h e o r d e r p a s s e d b y t h e L d. C I T( A ) w h e r e i n h e h a s s u s t a i n e d t h e d i s a l l o w a n c e m a d e u / s 1 4 3 ( 1 ) o f t h e A c t , b y th e C P C o n a c c o u n t o f a s s e s se e ’s f a il u r e to p a y t h e e m p l o y e e s ’ c o n t r i b u t i o n t o w a r d s E S I a n d P F w i t h i n t h e p r e s c r i b e d d u e d a te s a s p e r s e c t i o n 3 6 ( 1 ) ( v a ) of t h e A c t . H e a c c o r d i n g l y su p p o r t e d t h e o r d e r o f t he l o w e r a u th o r i t i e s . 6 . W e h a v e h e a r d th e r i v a l c o n t e n t i o n s a n d p e r u s e d t h e m a t e r i a l a v a i l a b l e o n r e c o r d . I n t h e i n s t a n t c a s e , i t i s n o t i n d i s p u t e t h a t e m p l o y e e s ’ c o n t r i b u t i o n t o E S I a n d P F h a d b e e n d e p o s i te d w e l l b e f o re t h e d u e d a t e o f f i l i n g of r e t u r n o f i n c o m e u / s 1 3 9 ( 1 ) o f t h e A c t . W e f i n d t h a t t h e i s s ue i s s q u a r e l y c o ve r e d b y t h e d e c i s i o n s o f t h e H o n ' b l e P un j a b & H a r y a n a H i g h C o u r t a s w e l l a s o t h e r H i g h C o u r t s s u ch a s H o n ' b l e H i m a c h a l P r a d e s h H i g h C o u r t a n d H o n ' b l e ITA No.272/Chd/2021 A.Y.2019-20 7 R a j a s t h a n H i g h C o u r t . W e f u r t he r n o t e t h a t t h o ug h th e I d . C I T( A ) h a s n o t d i s p u t e d t h e v a r i o u s d e c i s i o n s o f H on ' b l e H i g h C o u r t s i n cl u d i n g t h e de c i s i o n o f t h e j u r i s d i c ti o n a l P u n j a b & H a r y a n a H i g h C o u r t b u t h a s r e fe r r e d t o t h e a m e n d m e n t b r o u g h t i n b y t he F i n a n c e A c t , 2 0 2 1 . I t i s a c o n s i s t e n t p o s i t i o n a c r o s s v a r i o u s B e n c he s o f t h e Tr i b u n a l i n c l u d i n g C h a n d i g a r h B e n c h e s t h a t t h e a m e n d m e n t w h ic h h a s b e e n b r o u g ht i n b y t h e F i n a n c e A c t , 2 0 2 1 sh a l l a p p l y w . e . f . a s s e s s m e n t y e a r 2 0 2 1 - 2 2 a n d s u b s e q ue n t a s s e ss m e n t y e a r s a n d t h e i m p u g n e d a s s e s s m e n t y e a r b e i n g a s s e s sm e n t y e a r 2 0 1 9 - 2 0 , t h e s a i d a m e n d m e n t c a n n o t b e a p p l i e d i n th e i n s t a n t c a s e . Th e r e f o r e , c o n s i d e r i n g t h e e n t i r e t y of f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e a n d f o l l o w i n g t h e de c i s i on s o f v a r i o u s H i g h C o u r t s a s w e l l a s C o o r d i n a t e B e n c h e s of th e Tr i b u n a l r e f e r r e d a b o v e , t h e a d d i t i o n m a d e b y w a y of a d j u s t m e n t w h i l e p r o c e s s i n g t he r e t u r n o f i n c o m e u /s 1 4 3 ( 1 ) o f t h e A c t , a m o u n t i n g t o R s . 3 , 6 8 , 1 2 4 / - s o m ad e b y t h e C P C t o w a r d s t h e d e p o s i t of e m p l o y e e s ’ c o n t r i b u ti o n t o w a r d s E S I a n d P F p a i d b e f o r e th e d u e d a te o f f i l in g o f t h e r e t u r n o f i n c o m e u / s 1 3 9 ( 1 ) o f t h e A c t , i s h e r e b y di r e c te d t o b e d e l e te d . H e n c e , g r o u n d n o . 1 o f a s s e s s e e ’ s a p p e al i s a l l o w e d . 7 . R e g a r d i n g g r o u n d N o . 2 w h e r e in t h e L d . C I T( A ) h a s s u s t a i n e d t h e d i s a l l o w a n c e o f R s . 1 1 , 1 4 , 2 1 7 / - o n a c co u n t o f ITA No.272/Chd/2021 A.Y.2019-20 8 p r o v i s i o n f o r g r a t u i t y b e i n g de b i te d t o P r o f i t & L os s A c c o u n t , i t w a s s u b m i t t e d t h a t t h e a s s e s se e w h i l e fi l i n g i t s r e t u r n o f i n c o m e h a s s u o - m o t o d i s a l l o w e d t h e p r ov i si o n f o r g r a t u i t y a n d w h e r e s u c h a d j u s t m e n t h a s b e e n m a d e b y th e C P C w h i le p r o ce s s i n g t h e r e t ur n o f i n c o m e , t h e s a me a m o u n t t o d o u b l e t a x a t i o n w h i c h c a n n o t s t a n d i n t h e e ye s o f l a w a n d , t he r e f o re , t he s a i d a d d i t io n n e e d s t o b e de l e te d . I n t h i s r e g a r d , o u r r e f e r e n ce w a s d r a w n t o t h e r e t u r n o f i n c o m e w h e r e i n t h e a s s e s se e h a s d i s a l l o w e d a s u m o f R s . 1 4 , 5 6 , 2 9 6 / - w h i l e c o m p u t i n g i n c o m e u n d e r t h e h e ad ‘ p r o f i t s a n d g a i n s o f b u s i n e s s a n d p r o f e s s i o n ’ a n d i t w a s s u b m i t t e d t h a t th e s a i d f i g u r e o f R s . 1 4 , 5 6 , 2 9 6 / - c on s i s t e d o f e x p e n s e s r e l a t e d t o p r i o r p e r i o d a m o u n t i n g t o R s . 4 1 , 1 7 4 / - , i n t e r e s t o n i n c o m e t a x a n d o t h e r s a m o un t i n g t o R s . 2 , 8 8 , 3 0 5 / - , d o n a t i o n a m o u n t i n g t o R s . 1 2 , 6 0 0 / - a n d p r o v i s i o n f o r g r a t u i t y a m o u n t i n g t o R s . 1 1 , 1 4 , 2 1 7 / - . I t w a s a c c o r d i n g l y , s u b m i t t e d t h a t f r o m t h e r e t u r n o f i n c om e a s w e l l a s f r o m t h e c o m p u t a t i o n o f i n c o m e , i t i s c l e a r t h a t t h e r e i s a s e l f d i s a l l o w a n c e b y t he a s s e s s e e o f t h e p r o v i s i o n o f g r a t u i t y a n d , t h e r e f o r e , t he d i s a l l o w a n c e s o m a de b y t h e C P C w h i l e p r o c e ss i n g t h e r e t u r n of i n c o m e a n d s u s t ai n e d b y t h e L d . C I T( A ) b e d e l e te d . 8 . P e r c o n t r a , t h e L d . D R r e l i e d up o n t h e o r d e r of t h e L d . C I T( A ) . I t w a s s u b m i t t e d t h a t r e g a r d i n g t h e p r o po s e d ITA No.272/Chd/2021 A.Y.2019-20 9 d i s a l l o w a n c e , t he a s s e s s e e w a s i n t i m a t e d o n 1 1 . 1 2 . 20 1 9 w h e r e i n t h e i n t i m a t i o n o r d e r w a s f i n a l l y i s s u e d o n 2 7 . 0 2 . 2 0 2 0 a n d , t h e re f o re , t he a p p l i c a n t h a d s u f f i ci e n t t i m e t o r e s p o n d , h o w e v e r , t h e r e w a s n o e x p l a n a t i o n s u b m it t e d b y t h e a s se s se e b e f o r e t he C P C . I t w a s f u r t h e r s u b m i t te d t h a t i t i s c l e a r l y m e n t i o n e d i n t h e i n t i m a t i o n o r d e r t h at t h e d i s a l l o w a n c e o f e x p e n d i t u r e i n d i c a t e d i n t h e A u d i t R e p o r t w a s n o t t a k e n i n t o a c c o u n t b y t h e a p p l i c a n t f o r c o mp u t i n g t h e t o t a l i n c o m e w h i l e f i l i n g i t s r e t u r n o f i n c o m e . I t w a s a c c o r d i n g l y , s u b m i t t e d t h a t t h e L d . C I T( A ) h a s a c c o rd i n g l y , c o n f i r m e d t h e f i n d i n g s o f t h e C P C t h a t t he a m o u n t m e n t i o n e d i n t h e A u d i t R e p o r t w a s n o t s u o m o t o d i s al l o w e d b y t h e a s s e s s e e w h i l e f i l i n g t h e r e t u r n o f i n c o m e . 9 . W e h a ve h e a r d t h e r i v a l c o n t e n t i o n s a n d p e r u s e d th e m a t e r i a l a v a i l a b l e o n r e c o r d . I t i s m a n i f e s t f r o m t h e r e t u r n o f i n c o m e a l o n g w i t h t h e c o m p u t a t i o n o f i n c o m e s o fi l e d b y t h e a s se s s e e t h a t t h e p r o v i s i o n f o r g r a t u i t y w h i c h h a s b e e n d e b i te d i n t h e p r o f i t / l o s s a c c o u n t h a s b e e n d i s a l l ow e d b y t h e a s s e s se e i ts e l f a n d n o c l a i m f o r t h e p r o v i s i o n f o r g r a t u i t y h a s b e e n m a d e b y t h e a s s e s se e w h i l e f i l i n g i t s r e t u r n o f i n c o m e . Th e r e f o r e , th e a c t i o n o f t h e C P C i n d i s a l l o w i n g t h e sa m e w i l l a m o u n t t o a s i t u a t i o n w h er e t h e r e i s d i s a l l o w a n c e o f p r o v i s i o n w h i c h h a s n o t b e e n c l ai m e d a t t h e f i r s t p l a c e b y t h e a s s e s s e e a n d t h e s a m e w i l l cl e a r l y ITA No.272/Chd/2021 A.Y.2019-20 10 r e s u l t i n d o u b l e t a x a t i o n a n d w h i c h c a n n o t b e s us t ai n e d i n e ye s o f l a w . I n th e r e s u l t , t h e a d d i t i o n s o m a d e to w a r d s t h e p r o v i s i o n f o r gr a t u i t y a m o u n t i n g t o R s . 1 1 , 1 4 , 2 1 7 / - i s h e r e b y d i r e c te d t o b e d e l e te d a nd t h e g r o u n d of a p pe a l i s t h u s a l l o w e d . 1 0 . I n t he r e s u l t , t h e a p p e a l o f t he a s s e s se e i s a ll o we d . O r d e r p r o n o u n c e d o n 1 1 . 0 1 . 2 0 2 2 . Sd/- Sd/- (DIVA SINGH) (VIKRAM SINGH YADAV) /Judicial Member /Accountant Member Dated: 11.01.2022 *रती* आदेश क % त&ल'प अ*े'षत/ Copy of the order forwarded to : 1. अपीलाथ+/ The Appellant 2. %,यथ+/ The Respondent 3. आयकर आय ु -त/ CIT 4. आयकर आय ु -त (अपील)/ The CIT(A) 5. 'वभागीय % त न0ध, आयकर अपील य आ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File # $ स / By order, सह (ंज / Assistant Registrar