KISHOR PROJECTS PVT LTD,RAJKOT vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 2(3), RAJKOT

ITA 350/RJT/2023Status: DisposedITAT Rajkot31 August 2026AY 2013-148 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the assessee followed the cash system of accounting and the Work Contract Tax was actually paid during the relevant previous year, the deduction was allowable. The interest on delayed payment was also held to be compensatory and deductible.

What were the facts?

The assessee claimed deduction for Work Contract Tax and interest on delayed payment of Work Contract Tax. The Assessing Officer disallowed these expenses, stating they related to earlier financial years and the interest was penal in nature. The CIT(A) upheld the disallowance.

What were the issues?

Whether expenses relating to earlier years but paid in the current year are deductible under the cash system of accounting, and whether interest on delayed payment of statutory dues is penal or compensatory.

Which sections of the Income-tax Act were involved?

Section 145,Section 36(1)(va)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri D. M. Rindani, Ld. AR
For Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Hearing: 06/08/2026Pronounced: 31/08/2026

Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2013-14, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’], dated 29.09.2023, which in turn arises out of an order passed by assessing officer u/s. 143(3) of the Act, dated 29.03.2016. 02. Brief f

The order continues below.

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