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TMI Blog2024 (7) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... on passed u/s 143(1) of the Act by Centralised Processing Centre, Bengaluru [for short 'Ld. CPC'] . 2. Briefly stated facts of the present case are that; 2.1 The appellant assessee is a resident partnership firm filed its return of income [for short 'ITR'] on 29/07/2020 u/s 139(4) of the Act declaring total income Rs.1,91,15110/-. For AY under consideration, the CBDT extended the due date of filing ITR from 30/09/2019 to 30/10/2019. On the basis of Tax Audit Report [for short 'TAR'] the Ld. CPC disallowed a sum of Rs.1,69,63,968/- u/s 43B of the Act for assessee's failure to discharge statutory dues by actual payment within the due date of filing as prescribed u/s 139(1) of the Act and processed its ITR determining total income at Rs.3,60 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case seen that the appellant has disclosed his total income under the head PGBP amounting to Rs. 1,91,15,110/- only whereas the disallowance of expenditure indicated in the audit report amounting to Rs. 1,69,63,968/-but not taken into account in computing the total income in his return under the head PGBP. 4.6 Keeping in view of above it is concluded that the CPC has rightly made addition / disallowed of Rs. 1,69,63,970/- u/s 43B of the Income Tax Act, 1961 and the same is upheld. The appeal of the appellant is dismissed.‛ (Emphasis supplied) 3. During the course of hearing, Ld. AR Mr Kulkarni reiterated appellant's all arguments which were taken before first appellate authority. It is argued that, it is well settled law tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether discharge or actual payment of expenditure/liability made any time after the expiry of due date or extended due date prescribed u/s 139(1) of the Act but before filing of ITR u/s 139(4) of the Act qualifies for deduction in computing income u/c IV-D without attracting provisions of section 43B of the Act?' 6. It is well settled law that, items of expenditure/liability subscribed u/c (a) to (g) in section 43B of the Act which are otherwise allowed as deductions while computing business income u/c IV-D of the Act, shall indeed be allowed in a previous year in which such sums are actually paid irrespective of financial year in which liability towards was incurred. The proviso to section 43B eases the hardship by extending such period u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s account. This however fails to evoke our concurrence for the reasons that, section 43B opens with a non-obstante clause under the heading 'certain deductions to be only on actual payment'. As per settled principles of interpretation, a non-obstante clause assumes an overriding character against any other provision of general application. It declares that within the sphere allotted to it by the Parliament, it shall not be controlled or overridden by any other provision unless specifically provided for. 9. Out of the allowable deductions, the legislature consciously earmarked certain deductions from time to time and included them in the ambit of Section 43B so as to subject such deductions to conditionality of actual payment by the due dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry assessment u/s 143(1)(a) of the Act finds support from 'Sri Jawahar Lal Gupta Vs ITO' reported [1993] 199 ITR 726 (All.) and also finds support from CBDT Circular No. 601, dt 04/06/1991, which Ld. AR could hardly dispute during any of the proceedings including present one. However when matter travelled in an appeal to first appellate authority, the Ld. NFAC perfunctorily confirmed the disallowance on the basis of delayed filing of GST return without vouching the exact amount of GST discharged by extended due date i.e. 30/10/2019 and balance amount of GST paid beyond such extended due date for confirming disallowance u/s 43B of the Act. For the reason we see strong force in remanding the matter back to the file of Ld. NFAC with a directio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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