Mr. Madhab Goswami, Kolkata V. I.T.O., Ward - 32(3), Kolkata, Kolkata

ITA 91/KOL/2023

AI Insights

The case involves Mr. Madhab Goswami, the appellant, who contested the disallowance of Rs.2,88,503 claimed as expenditure under the head IGST for the assessment year 2019-2020. The disallowance was initially made by the Assessing Officer during the processing of the return under section 143(1) of the Income Tax Act, citing lack of clarity and supporting documents regarding the claim. The CIT(Appeals) upheld this disallowance, leading to the present appeal. The Tribunal, after reviewing the submissions and the CIT(Appeals)'s decision, found that the CIT(Appeals) had not adequately addressed the appellant's explanations and the supporting documents provided, leading to the decision to allow the appeal and delete the disallowance.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129168 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 26-04-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 05-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 154; 139(1)

Judgement Text

ITA No. 91/KOL/2023 Assessment Year : 2019-2020 Mr. Madhab Goswami 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President & Shri Rajesh Kumar, Accountant Member I.T.A. No. 91/KOL/2023 Assessment Year: 2019-2020 Mr. Madhab Goswami,.............................Appellant 1/1B, Pottery Road, Kolkata-700015 [PAN: AYBPG3354Q] -Vs.- Income Tax Officer,................................Respondent Ward-32(3), Kolkata Appearances by: Shri S.K. Roy, A.R., appeared on behalf of the assesseee Smt. Ranu Biswas, Addl. CIT, DR, appeared on behalf of the Revenue Date of concluding the hearing : April 27, 2023 Date of pronouncing the order : June 1, 2023 O R D E R Per Shri Rajpal Yadav, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 20 th December, 2022 passed for assessment year 2019-20. ITA No. 91/KOL/2023 Assessment Year : 2019-2020 Mr. Madhab Goswami 2 2. Though the assessee has taken eight grounds of appeal, but his grievances revolve around a single issue, namely, ld. CIT(Appeals) has erred in confirming the disallowance of Rs.2,88,503/-. 3. The assessee has filed his return of income under section 139(1) of the Income Tax Act. The case of the assessee is that a sum of Rs.2,80,503/- pertains to IGST. This amount relates to March, 2019 and was required to be paid by 24.04.2019. Therefore, being ascertained liability while filing the return, assessee has claimed it as expenditure. While processing the return of the assessee under section 143(1), ld. Assessing Officer has disallowed this claim of the assessee. 4. Dissatisfied with the addition, assessee carried the matter in appeal and filed written submission, which has been noticed by the ld. 1 st Appellate Authority on page no. 3 of the impugned order. The ld. CIT(Appeals) thereafter recorded the following finding:- “5. Decision: I have considered appellant’s submissions. In this case, the CPC, Bangalore has made adjustment of Rs.2,80,503/- claimed by the appellant as on expenditure under the head IGST. Rectification application u/s 154 was filed, but the same was rejected. 5.1. Now the appellant in the appellate proceeding, has mentioned that Rs. 2,80,503/- is an expenditure under the Head I.G.S.T. and it is under the Head liabilities for expenses and the disallowance is not correct. ITA No. 91/KOL/2023 Assessment Year : 2019-2020 Mr. Madhab Goswami 3 5.2. I have gone through the grounds of appeal and statement of facts, filed by the appellant. Debit of Rs. 2,80,503/- under the Head I.G.S.T. is not clear. No details have been given regarding sale/turnover. No details are given on the treatment of I.G.S.T. worth Rs. 2,80,503/- in the PSL account. It will be an allowable expenditure if, it is supported by the documents arid evidences of sale/turnover. Here, the appellant has failed to provide any supporting document/evidences. 5.3. Hence, the rectification on order u/s 154, rejecting the application of the appellant, is sustained and the appeal of the appellant is dismissed”. 5. With the assistance of ld. Representatives, we have gone through the record carefully. A perusal of the above finding would reveal that the ld. CIT(Appeals) has not assigned any reason for rejecting the contention of the assessee. He simply observed that originally this amount was disallowed to the assessee in a prima facie adjustment and thereafter application of the assessee under section 154 has been rejected. The ld. CIT(Appeals) further observed that no details have been given regarding sale/turnover. In other words, he was not sure against which sales, this IGST has been claimed. The ld. CIT(Appeals) observed that it is not clear from the record. If while examining the issue on the basis of the details, the ld. CIT(Appeals) is not clear in his mind about the nature of expenditure, then it cannot be disallowed by the CPC under the artificial intelligence. The assessee has filed application under section 154 explaining the nature. It has thereafter filed written submission before the ld. CIT(Appeals) again explaining ITA No. 91/KOL/2023 Assessment Year : 2019-2020 Mr. Madhab Goswami 4 the nature but in a mechanical manner. His submission has been rejected. Therefore, we allow this appeal and delete the disallowance. 6. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on June 1, 2023. Sd/- Sd/- (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President(KZ) Kolkata, the1st day of June, 2023 Copies to : (1) Mr. Madhab Goswami, 1/1B, Pottery Road, Kolkata-700015 (2) Income Tax Officer, Ward-32(3), Kolkata (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) Commissioner of Income Tax , (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.