KHUSHALRAO KESHAVRAO GARJE,MUMBAI vs. DY COMMISSIONER OF INCOME TAX,CPC,BANGLORE, BANGALORE

ITA 1866/MUM/2022Status: DisposedITAT Mumbai11 September 2023AY 2017-185 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the disallowance made under section 154 of the Act was void ab initio because it enhanced the assessee's liability without issuing the mandatory notice and providing an opportunity of being heard as required by section 154(3). Consequently, the disallowance was directed to be deleted.

What were the facts?

The assessee's return was processed without disallowing delayed employee ESI/EPF contributions. Subsequently, during the processing of a rectification application filed by the assessee for TDS credit, the AO-CPC made a disallowance for delayed ESI/EPF payments without issuing a prior notice.

What were the issues?

Whether a disallowance under section 36(1)(va) can be made via a rectification order under section 154 without issuing a prior notice to the assessee, thereby enhancing their liability.

Which sections of the Income-tax Act were involved?

Section 154,Section 36(1)(va),Section 139(1),Section 143(1),Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

Before: SHRI AMARJIT SINGH & SHRI SANDEEP SINGH KARHAIL

For Appellant: Ms. Rucha Vaidya
For Respondent: Shri P.D. Chogule

PER SANDEEP SINGH KARHAIL, J.M.

The present appeal has been filed by the assessee challenging the impugned order dated 26/05/2022, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [“learned CIT(A)”], which in turn arose from the rectification order passed under section 154 of the Act, for the assessment year 2017-18. 2. The present appeal has been listed for hearing before us pursuant to the order dated 07/07/2023, passed by the coordinate bench of the Tribunal in ITO v/s Khushalrao Keshavrao Garje, M.A. no.260/Mum./2023 (in

The order continues below.

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