RAKESH PHOOLCHAND TIWARI,MUMBAI vs. ADIT,CPC, WARD 24(3)(1), MUMBAI

The solitary ground of appeal of the assessee is directed against the order of ld. CIT(A) in disallowance of bonus expenditure amounting to Rs.9,67,944 claimed as deduction u/s.43B of the Act.

3. The brief facts of the case are that the CPC, Bangalore while processing of Return of Income u/s.143(1) of the Act disallowed a sum of Rs.9,78,098 claimed by the assessee u/s.43B of the Act on account of liability for unpaid bonus. Aggrieved assessee filed an appeal before the ld. CIT(A). The ld. CIT(A) dismissed the appeal of the assessee.

Heard both the parties and perused the material available on record. The Asst. Director of Income Tax, CPC, Bangalore while processing the Return of Income of the assessee, disallowed an amount of Rs.9,67,944 on unpaid bonus. The ld. CIT(A) confirmed the impugned disallowance stating that the assessee had not submitted any further details in support of his contention of payment of such bonus amount as per the provisions of law. During the course of appellate proceedings, before us, the assessee had filed application vide letter dt.9.10.2011 requested for admitting additional evidences stating that at the time of assessment u/s.143(1) of the Act, the assessee was not granted opportunity to substantiate his claim. Even before the ld. CIT(A), the assessee requested for adjournment but the same was not granted. The assessee claimed in his submission that bonus amount was paid before the due date of filing of Return of Income. The assessee furnished copies of computation of income tax returns for A.Y. 2019-20, copy of adjournment application, copy of bank statement showing payment made, copy of register showing acknowledgement of receipt of bonus by the employees, etc. On perusal of the aforesaid material placed on record, it is noticed that the assessee had made adjournment request on 22.11.2021 on the Eportal of Income Tax Department and sought adjournment upto 3.12.2021, however, the ld. CIT(A) had decided the appeal of te assessee on 23.11.2021 without considering the above referred adjustment application of the assessee holding that the assessee had not submitted any details. In the light of the above facts and circumstances, we consider that the decision of ld. CIT(A) in dismissing the appeal of the assessee is not justified, therefore we restore the matter to the file of ld. CIT(A) for adjudicating de novo after taking to consideration the additional evidences filed b the assessee. Accordingly, both the grounds of appeal of the assessee are allowed for statistical purpose.

In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open Court on 7th July, 2022.