Signature International Foods I P Ltd., , Nashik V. Deputy Commissioner of Income-Tax, CPC, Bangalore

ITA 459/PUN/2022

AI Insights

The case involves Signature International Foods India Private Limited (the 'Appellant') appealing against the order of the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi, which upheld the disallowance of INR 1,60,00,000 under section 43B of the Income Tax Act, 1961. The disallowance was initially made by the Dy.Commissioner of Income Tax, CPC, Bangalore, through a Rectification Order. The Appellant contended that the amount had already been disallowed in their Return of Income and that a double disallowance occurred due to reporting in Form 3CD. The Tribunal, after hearing the Departmental Representative and reviewing the records, decided to set aside the matter to the Assessing Officer for verification of the Appellant's claim.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134320 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 09-01-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 09-06-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order
• Section: 154; 43B; 234B; 250

Judgement Text

आयकर अपीलीय अिधकरण “बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.459/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2018-19 Signature International Foods India Private Limited, A/2, Plot No.245, Shree Samarth Sahakari, Audhyogik Vasahat Ltd., Mukhed Road, Pimpalgaon Baswant, Niphad, Nashik – 422209. PAN: AACCH 2133 E V s The Commissioner of Income-tax(Appeals), DCIT, CPC, Bangalore. Appellant/ Assessee Respondent / Revenue Assessee by None. Revenue by Shri Kranti E. Khobragade – DR Date of hearing 10/01/2023 Date of pronouncement 25/01/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Assessee is directed against the order of ld.Commissioner of Income Tax(Appeal)[NFAC], Delhi dated 12.04.2022 emanating from the Rectification Order dated 28.11.2019 under section 154 of the I.T.Act, 1961 for the A.Y.2018-19, passed by Dy.Commissioner of Income Tax, CPC. The assessee has raised following grounds of appeal are as under: “Based on the facts and in the circumstances of the case and in law, Signature International Foods India Private Limited (hereinafter referred to as the ‘Appellant’ of ‘SIFIPL’) craves leave to prefer ITA No.459/PUN/2022 Signature International Foods I P Ltd., [A] 2 appeal against the order passed by the Commissioner of Income- tax (Appeals), Income Tax Department, National Faceless Appeal Centre (‘NFAC’), Delhi [‘CIT(A)’] under section 250 of the Income-tax Act, 1961 (‘the Act') on the following grounds: Ground 1: On the facts and in the circumstances of case and in law, the Hon’ble CIT(A) has erred in making an addition under section 43B of the Act amounting to INR 1,60,00,000 1.1 The Hon'ble CIT(A) has erred on facts and in law in not appreciating that the Appellant has suo- moto disallowed INR 1.60,00.000 in the return of income (‘ROI’) and any further disallowance of the same amount due to the reporting in the Form 3CD will result in a double disallowance. 1.2 The Hon’ble CIT(A) erred on facts and in the circumstances of the case and in law in ignoring the clarificatory email dated 16 January 2021 provided by the Tax Auditor of the Appellant wherein the Tax Auditor has clearly stated that the same amount was reported twice in the Form 3CD for disclosure purposes and only one amount was reported in the audited financial statements Ground 2: Levy of interest under section 234B 2.1 The Hon’ble CIT(A) has erred on the facts and in law in directing the AO to levy consequential interest under section 234B of the Act on the erroneous double disallowance. Ground 3: Levy of interest under section 234C 3.1 The Hon'ble CIT(A) has erred on the facts and in law in directing the AO to levy consequential interest under section 234C of the Act on the erroneous double disallowance. All the above grounds are without prejudice to each other.” ITA No.459/PUN/2022 Signature International Foods I P Ltd., [A] 3 2. In this case, Dy.Commissioner of Income Tax (CPC), Bangalore passed order under section 154 of the Act, dated 28.11.2019. The DCIT(CPC) disallowed Rs.1,60,00,000/- under section 43B of the Act. The assessee filed appeal before the ld.CIT(A) against the said order under section 154 of the Act. The ld.CIT(A) upheld the disallowance on the ground that no revised Tax Audit Report or Auditors Certificate was filed to substantiate the claim that there has been double deduction. 3. Aggrieved by the same, the assessee filed appeal before this Tribunal. 4. At the outset of hearing, none appeared on behalf of the assessee. The ld.DR of the Revenue was heard. Therefore, we proceed to decide the appeal ex-parte. 5. We have heard the ld.DR and perused the records. The Assessee’s contention is that assessee has already suo-moto disallowed Rs.1,60,00,000/- in the Return of Income, therefore, there was no need for further disallowance. In the facts and circumstances of the case, we are of the opinion that this needs verification by the Assessing Officer(AO). Therefore, we set-aside it to the Assessing Officer with a direction that he shall verify assessee’s claim of suo- moto disallowance. The Assessing Officer shall give opportunity to ITA No.459/PUN/2022 Signature International Foods I P Ltd., [A] 4 the assessee, accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose. 6. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 25 th January, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 25 th Jan, 2023/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.