M/S RAJASTHAN KNOWLEDGE CORPORATION LTD.,JAIPUR V. ACIT, CIRCLE-1, JAIPUR, JAIPUR

ITA 279/JPR/2025

AI Insights

The case involves M/s Rajasthan Knowledge Corporation Ltd., the appellant, contesting the disallowance of a bonus amount and employees' contribution to PF by the Assessing Officer, which was upheld by the CIT(A). The Tribunal examined whether the disallowance of the bonus was justified under Section 43B of the Income Tax Act, 1961, considering the bonus was paid before the due date of filing the return. The Tribunal found that the disallowance was not in accordance with the provisions of Section 43B, as the bonus was paid on time, leading to the setting aside of the CIT(A)'s order on this matter.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708739 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ANITA RINES H
• Assessee Lawyers: P.C. PARWAL
• Keywords: Set aside; TDS
• Section: 154; 43B

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A-Bench” JAIPUR Jh xxu xks;y] ys[kk lnL; ,o aJh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SHRI GAGAN GOYAL, AM& SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 279/JPR/2025 fu/kZkj.k o\"kZ@Assessment Year : 2018-19 M/s Rajasthan Knowledge Corporation Ltd. 7A, Jhalana Institutional ARE, Jaipur. cuke Vs. The ACIT, Circle-1, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAECR1253K vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Shri P.C. Parwal, C.A. jktLo dh vksjls@Revenue by: Mrs. Anita Rinesh, JCIT-DR lquokbZ dh rkjh[k@Date of Hearing : 23/06/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 15/07/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER. On 16.01.2025, appeal filed by the assessee appellant, before Learned CIT(A), NFAC, Delhi, while challenging order dated 25.07.2022 issued u/s 154 of Income Tax Act, 1961 (in short “the Act”), came to be dismissed, while observing as under:- “5.6 in view of the above, mandatory condition of making the payment of the employees contribution to the PF and ESI funds within 15 days of the close of every month, has not been fulfilled by the appellant so as to be entitled for claim of deduction u/s 36(1)(va) of the Act. Accordingly, the AO’s action of disallowing the amount on account of disallowance of bonus amount of Rs. 14,03.,538/- and 2 ITA No. 279/JPR/2025 M/S Rajasthan Knowledge Corporation Ltd., Jaipur. employees contrition to PF of Rs. 5,172/- is hereby confirmed and grounds of appeal filed by the appellant are treated as dismissed.” 2. Vide order dated 25.07.2022, rectification application filed by the assessee as regards intimation u/s 143(1) of the Act, issued on 16.10.2019, pertaining to the assessment year 2018-19, came to be rejected. 3. That is how, the assessee- appellant is before this Appellate Tribunal. 4. Arguments heard. File perused. 5. Admittedly, the assessee appellant filed Income Tax Return (ITR) for the assessment year 2018-19, on 28.09.2018. The case of the assessee was processed by Central Processing Centre (CPC) of the department and thereupon, intimation u/s 143(1) of the Act, came to be issued, which revealed that CPC made certain additions, including disallowance of a sum of Rs. 14,03.538/- towards bonus amount and a sum of Rs. 5,172/- towards employees contribution to PF, which was deposited late. 6. The assessee has challenged the impugned order passed by Learned CIT(A), on the ground that disallowance of bonus amount of Rs. 14,03,528/- paid by the assessee has been wrongly confirmed, without 3 ITA No. 279/JPR/2025 M/S Rajasthan Knowledge Corporation Ltd., Jaipur. taking into consideration that the said amount was paid on 17.09.2018 i.e. before the due date of filing of the return. In the course of arguments before us, Ld. AR for the appellant has raised only one contention that in view of the provisions of Section 43B of the Act, Learned CIT(A) erred in confirming disallowance of the bonus paid. No other argument has been advanced. It may be mentioned here that even in the written submission presented today on behalf of the appellant, Ld. AR has not challenged the impugned order passed by Learned CIT(A), on any other ground. 7. Ld. DR for the department has not disputed payment of the above said amount of Rs. 14,03,538/- by way of bonus on 17.09.2018 i.e. before due date of filing of return i.e. 30.09.2018. 8. As is available from copy of intimation u/s 143(1) of the Act, the assessee filed return on 28.09.2018. 9. As per paper book submitted today, on behalf of the appellant, following documents/submissions were furnished by the assessee appellant before the Assessing Officer and Learned CIT(A) as under:-  Copy of return of income along with computation;  Copy of Financial statement and audit report;  Copy of intimation order u/s 143(1) dated 16.10.2022; 4 ITA No. 279/JPR/2025 M/S Rajasthan Knowledge Corporation Ltd., Jaipur.  Copy of acknowledgment of return dt. 04.01.2022;  Copy of Application for Rectification u/s 154;  Copy of following documents relating to the payment of bonus before due date of filing the return:-  Kotak bank statement of assessee.  Ledger account of performance linked award cum bonus in the books of assessee.  Ledger account of TDS on salary in the books of assessee.  Copy of calculation sheet of performance linked award bonus for the FY 2017-18. Paper book contains copy of balance sheet of the assessee as on 31.03.2018. Copy of the audit report submitted u/s 44AB of the Act, is dated 14.08.2018. As per its column No. 26(1)(B)(b), (page 23 of the paper book), bonus of Rs. 14,03,538/- is stated to have been not paid on or before the due date for furnishing of return u/s 139(1) of the Act. However, as is available from the information available at pages 44 to 48 of the paper book, said amount of bonus is stated to have been paid on 17.09.2018. In other words, said amount came to be paid before due date of filing of return u/s 139(1) of the Act. Therefore, in view of provisions of section 43B of the Act, no disallowance of the said amount could be made. Ld. AR for the appellant 5 ITA No. 279/JPR/2025 M/S Rajasthan Knowledge Corporation Ltd., Jaipur. has rightly submitted that provisions of Section 36(1)(va) of the Act cannot be resorted to for disallowance of this amount. Accordingly, we are of the considered view that the impugned order cannot be sustained as regards disallowance of the bonus amount timely paid by the assessee under the Act. Result 10. In view of the above discussion and findings, this appeal is partly allowed and the impugned order passed by Learned CIT(A) is set aside whereby disallowance of bonus to the tune of Rs. 14,03,538/- was also confirmed by Learned CIT(A). Assessing Officer to do recalculations having regard to this decision and in accordance with rules. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 15/07/2025. Sd/- Sd/- ¼xxu xks;y½ ¼ujsUnz dqekj½ (GAGAN GOYAL) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 15/07/2025 *Santosh 6 ITA No. 279/JPR/2025 M/S Rajasthan Knowledge Corporation Ltd., Jaipur. vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- M/s Rzjasthan Knowledge Corporation Ltd. Jaipur. 2. izR;FkhZ@ The Respondent- ACIT, Cricle-1, Jaipur. 3. vk;djvk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZQkbZy@ Guard File ITA No. 279/JPR/2025) vkns'kkuqlkj@ By order, lgk;diathdkj@Asstt. Registrar "