Jay Narayan Periwal, Surat V. Income Tax Officer, Ward - 2(3)(1), Surat

ITA 326/SRT/2022

AI Insights

The case involves an appeal by Jay Narayan Periwal against the order of the National Faceless Appeal Centre (NFAC)/Commissioner of Income Tax (Appeals), which disallowed a deduction of Rs. 1,36,430 under Section 43B of the Income Tax Act for the Assessment Year 2020-21. The disallowed amount comprised various contributions and payments including PF, ESI, interest on term loans, professional tax, and GST. The assessee argued that all payments were made within the stipulated time and provided evidence in the form of challans and bank payment proofs. The Tribunal, after reviewing the submissions and evidence, ruled in favor of the assessee, allowing the deduction and directing the Assessing Officer to make the necessary adjustments.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301573 (ITAT-SURAT)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 03-01-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 09-11-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH (SMC), SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 326/Srt/2022 (Assessment Year: 2020-21) (Physical hearing) Jay Narayan Periwal, 144-149, Behind Bharat Petrol Pump, Near Komal Circle, Bamroli Road, Surat. PAN No. ACJPP 7250 N Vs. I.T.O. Ward-2(3)(1), Surat. Appellant/ assessee Respondent/ revenue Appellant represented by Shri Suresh K Kabra, CA Respondent represented by Shri Vinod Kumar, Sr. DR Date of hearing 04/01/2023 Date of pronouncement 04/01/2023 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of National Faceless Appeal Centre, Delhi (in short, the NFAC)/learned Commissioner of Income Tax (Appeals) (in short, the ld. CIT(A) dated 16/09/2022 for the Assessment year (AY) 2020-21. The assessee has raised following grounds of appeal: “1. The ld. Faceless CIT(A) has erred on the facts of the case and in law in not discussing the ground No. 2 relating to disallowance u/s 43B of Rs. 1,36,430/- and confirming the same. 2.1 The claim of deduction u/s 43B of Rs. 1,36,430/- may be kindly allowed. 2.2 Personal hearing may be granted. 2.3 Any other relief that your honours may deem fit may be granted. 3. The assessee craves leave to add, amend, modify alter or delete any of the grounds at the time of hearing.” ITA No.326/Srt/2022 Jay Narayan Periwal Vs ITO 2 2. At the outset of hearing, the learned Authorised Representative (ld. AR) of the assessee submits that the assessee has deposited/contributed or paid all the payments admissible/ allowable under section 43B and the assessee has claimed deduction of such payment only on actual payment. The CPC wrongly disallowed the deduction under Section 43B. None of the payment /contribution is claimed without actual payment. The ld. AR of the assessee submits that he has filed all the relevant challan and proof of bank payment about the payment of such contribution which consist of PF payable on account of Employer Contribution, interest on term loan, professional tax payable and GST payable. 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the revenue submit that the Assessing Officer may be directed to verify such details and may be directed to grant relief to the assessee in case all the payment is deposited/contributed or actually paid allowable under section 43B. 4. I have considered the submissions of both the parties and perused the record. I find that the CPC disallowed the payment claimed under section 43B of Rs. 1,36,430/-. I find that the claim of assessee consist of PF payable on account of Employer Contribution, interest on term loan, professional tax payable and GST payable. I further find that the assessee has filed on record ITA No.326/Srt/2022 Jay Narayan Periwal Vs ITO 3 the following bifurcation of various claim, with their challan and proof of bank payment. “details of payments made (u/s 43B)” Particulars Amount payable as on 31.03.2020 Paid on Page No. Paper book PF Payable (Employer Contribution) (500 + 5413 500 + 3538) Total 9,951 04/06/2020 & 18/06/2020 36-38 ESI Payable (Employer Contribution) (7666 + 6305) Total 13,971 04/06/2020 & 18/06/2020 40-43 Interest on term loan 87,840 02/04/2020 05/04/2020 & 10/04/2020 46 Professional Tax Payable 17,650 20/06/2020 44 GST Payable 7,018 20/06/2020 45 Total 1,36,430 5. On careful examination of all above details I find that all the claim admissible under Section 43B was actually paid/ contributed/ deposited by the assessee before due date of filing return of income. Thus, the assessee is eligible for deduction of all such claim of aggregating Rs. 1,36,430/-. Hence, the Assessing Officer is directed to delete the addition of Rs. 1,36,430/-. In the result, the grounds of appeal raised by the assessee is allowed. 6. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 04 th January, 2023. Sd/- (PAWAN SINGH) JUDICIAL MEMBER Surat, Dated: 04/01/2023 *Ranjan Copy to: 1. Assessee 2. Revenue ITA No.326/Srt/2022 Jay Narayan Periwal Vs ITO 4 3. CIT(A) 4. CIT 5. DR 6. Guard File By order Sr.Private Secretary, ITAT, Surat