TAMILNADU WATER INVESTMENT COMPANY LIMITED , CHENNAI V. ADIT , CPC , BANGALORE

ITA 968/CHNY/2022

AI Insights

The case involves Tamilnadu Water Investment Company Ltd., which appealed against a disallowance of Rs.14.67 Lacs under section 43B of the Income Tax Act for the Assessment Year 2020-21. The disallowance was initially due to an erroneous reporting by the tax auditor, who netted two amounts related to gratuity fund payments in Form 3CD. The Tribunal found prima facie that the adjustment made by the Central Processing Centre (CPC) was unwarranted and directed a re-examination of the facts.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134069 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 11-01-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 15-11-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43B

Judgement Text

आयकर अपीलीय अिधकरण ’सी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय +ी वी. द ु गा1 राव, ाियक सद2 एवं माननीय +ी मनोज कु मार अ7वाल ,लेखा सद2 के सम9। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.968/Chny/2022 ( िनधा1रण वष1 / Assessment Year: 2020-21) Tamilnadu Water Investment Company Ltd. 1 st Floor, Polyhose Towers, No.86, Mount Road, Guindy, Chennai – 600 032. बनाम/ V s. ADIT CPC, Bangalore. थायीले खासं ./जीआइआरसं ./ PAN/GIR No. AABCT-8 1 5 3 -B (अपीलाथ /Appellant) : ("#थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri R. Viswanathan (FCA) – Ld. A.R "#थ कीओरसे/Respondent by : Shri P. Sajit Kumar - (JCIT) – Ld. D.R सुनवाईकीतारीख/Date of Hearing : 12-01-2023 घोषणाकीतारीख /Date of Pronouncement : 12-01-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member): 1. In the aforesaid appeal for Assessment Year (AY) 2020-21, the sole issue that fall for our consideration is disallowance u/s 43B for Rs.14.67 Lacs. The Ld. AR submitted that impugned disallowance arises because of erroneous reporting by tax Auditor. The attention has been drawn to the fact that in computation income, the assessee claimed deduction for late payment of gratuity fund for Rs.27.95 Lacs which was disallowed in earlier years but paid in this year and therefore, the 2 deduction of the same was claimed. At the same time, the assessee debited provision for gratuity for Rs.14.67 Lacs which remained unpaid and accordingly, the same was disallowed in the computation of income. However, Tax Auditor, reported net of the two i.e., Rs.13.27 Lacs in Form 3CD which led to impugned disallowance. Considering the same, CPC restricted allowable amount of Rs.27.95 Lacs to the extent of Rs.13.27 Lacs and made adjustment of Rs.14.67 Lacs while processing the return of income. 2. Upon perusal of documents as placed on record, prima facie the impugned adjustment is unwarranted. Therefore, we direct Ld. AO to verify the fact as stated in assessee’s submissions as above. If the same is found to be correct, the impugned adjustment would stand deleted and necessary computations would follow. 3. The appeal stand allowed for statistical purposes. Order pronounced on 12 th January, 2023. Sd/- (V. DURGA RAO) ाियक सद2 /JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद2 / ACCOUNTANT MEMBER चे4ई / Chennai; िदनांक / Dated : 12-01-2023 EDN/- आदेश की Uितिलिप अ7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु /CIT 5. िवभागीय ितिनिध/DR 6. गाड फाईल/GF