9911796707
TMI Blog2021 (9) TMI 748X X X X Extracts X X X X X X X X Extracts X X X X ..... ground number 4 and 5 of the appeal of the assessee is allowed. Disallowance u/s 40 A (7) - disallowance on account of gratuity has been made by the Central processing unit - HELD THAT:- It is apparent that in the breakup of the disallowance u/s 43B assessee has already included the above sum, however correctly the assessee should have disallowed the above sum u/s 40A (7) of the act. There is a inconsistency in filing of the return of income by the assessee and therefore it is the duty of the assessee to show before the learned assessing officer the nature of the mistake and how it resulted into double disallowance. In view of this we set-aside ground of the appeal of the assessee back to the file of the learned assessing officer with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Singh, Sr. D. R. ORDER PER PRASHANT MAHARISHI, A. M. 1. These two appeals are filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals) 2, New Delhi, for assessment years 2017-18 and 2018-19 dated 26.08.2020 and 03.09.2020 for respective years where in assessee s appeal filed against the order u/s 143 (1)(a) of the act passed by The Central Processing center Bangalore are dismissed. 2. First we come to the appeal of the assessee for assessment year 2017 18. The assessee has raised the following grounds in ITA. No. 1860/Del/2020 for Assessment year 2017-18:- 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and in facts in confirming the acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of ₹ 18,06,719/- u/s 40A(7) of the Act without appreciating the facts of the case. 7. That in any case and in the view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making disallowance of ₹ 18,06,719/- u/s 40A(7) of the Act and not accepting the claim of the appellant, is bad in law and against the facts and circumstances of the case. 8. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and in facts in confirming the action of Ld. AO in making disallowance of ₹ 43,53,078/- u/s 43B of the Act without appreciating the facts of the case. 9. That in any case and in the view of the matter, action of Ld. CIT(A) in confirming the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . ₹ 8,91,765/- on account of late deposit of employee s contribution to provident fund. b. ₹ 1,14,176/- inconsistency in total amount of disallowance u/s 37. c. ₹ 18,06,719/- for provision of payment of gratuity u/s 40A(7) of the Act. d. ₹ 43,53,078/- regarding disallowance u/s 43B of the Act. 7. Disallowance of ₹ 891765/- made by CPC is deleted in 154 proceedings and therefore assessee has withdrawn grounds no 2 3. Other additions remain. 8. Against the intimation the assessee preferred an appeal before the ld CIT(A) who dismissed the appeal of the assessee holding that assessee has not brought on record anything to show and therefore, he upheld the disallowances. He further held that adjustme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has disallowed of ₹ 4,923,078/ u/s 43B of the income tax act. The breakup of the disallowance is given at page number 81 of the paper book wherein according to the assessee the above sum has already been included. Therefore there is a double disallowance. It is apparent that in the breakup of the disallowance u/s 43B assessee has already included the above sum, however correctly the assessee should have disallowed the above sum u/s 40A (7) of the act. There is a inconsistency in filing of the return of income by the assessee and therefore it is the duty of the assessee to show before the learned assessing officer the nature of the mistake and how it resulted into double disallowance. In view of this we set-aside ground nu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the items disclosed in the tax audit report. If the AO is satisfied that the disallowance offered by the assessee is correct, about disallowance deserves to be deleted. Accordingly ground number 8 and 9 of the appeal are allowed 14. Accordingly, appeal of the assessee for assessment year 2017 18 is partly allowed for statistical purposes. 15. Similarly, for Assessment Year 2018-19 the ld CPC has disallowed a sum of ₹ 13,03,175/- u/s 43B of the Act. The statement of adjustment shows that the total amount of disallowance mentioned by the auditor is ₹ 84,42,537/- whereas the amount disallowed in the return of income is only ₹ 71,39,362/- therefore, the disallowance of ₹ 13,03,175/- is made by the CPC on furn ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
