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Facts
The assessee company filed its return declaring total income. During scrutiny, a discrepancy was found in the bonus payment amount between the ITR and the audit report. The Assessing Officer made an addition based on this discrepancy.
Held
The Tribunal observed that the discrepancy in the Form 3CD was due to a mistake in reporting. The matter was remitted back to the Assessing Officer to re-examine the issue and delete the addition if the reporting was indeed erroneous.
Key Issues
Whether the addition made by the Assessing Officer on account of discrepancy in bonus payment reporting in Form 3CD is justified, or if it was a clerical error that should lead to deletion.
Sections Cited
142(1), 36(1)(ii), 115BBE
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Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ)
Assessment Year: 2018-2019 Radhanagar Cold Stores Pvt. Limited,...……Appellant 161, Rajakatra Building, 1st Floor, Netaji Subha Road, Burrabazar, Kolkata-700007 [PAN:AABCR5647N] -Vs.- Income Tax Officer,…………………………..…..Respondent Ward-9(3), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Palash Chttopadhyay, FCA, appeared on behalf of the assessee Shri Susanta Saha, Sr. D.R., Addl. CIT, appeared on behalf of the Revenue Date of concluding the hearing: September 04, 2025 Date of pronouncing the order: November 20, 2025 O R D E R
The present appeal is directed at the instance of assessee against the order of Id. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 11.02.2025 passed for Assessment Year 2018-2019.
(A.Y. 2018-2019) Radhanagar Cold Stores Pvt. Limited 2. Facts in brief are that the appellant-assessee is a Private Limited Company, which filed its return of income on 09.10.2018 declaring total income of Rs.39,89,130/-. The case was selected for limited scrutiny through CASS to verify the issue of payment of bonus/commission paid to the employees. During the course of assessment proceedings, the ld. Assessing Officer noted that there was difference in the amount of payment of bonus/commission paid to the employees as per ITR and audit report. Notice under section 142(1) of the Act was issued on 02.12.2020 and duly served upon the assessee calling for details to be filed on or before 17.12.2020. The appellant was requested to explain the difference but there was no response from the side of assessee. It has been found t4hat there are variations in the amount of the bonus paid by the assessee to its employees. Schedule OI of the ITR shows that NIL amount was paid as bonus to the assessee’s employees, but as per P&L Account, the assessee ha claimed Rs.4,54,966/- as bonus paid to the employees and as per 3CA report, amount of Rs.3,08,839/- as bonus paid to the employees. Therefore, the ld. Assessing Officer made the addition of Rs.4,54,966/-. Finally, ld. Assessing Officer determined the total assessed income of the assessee at Rs.44,44,096/-.
On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) dismissed the appeal of the assessee saying that as the auditor has given a certificate saying that the bonus payment figure was wrongly mentioned as Rs.3,38,839/- instead of NIL and as per ITR, bonus paid is NIL and as per corrected figure of audit report is also NIL. Therefore, the (A.Y. 2018-2019) Radhanagar Cold Stores Pvt. Limited addition made by the ld. Assessing Officer of Rs.4,54,966/- is confirmed.
On being aggrieved, the assessee preferred an appeal before the Tribunal and raised the following grounds: (1) That the ld. CIT(A) has erred both on facts and in law in sustaining the action of the Assessing Officer in making a disallowance of Rs.4,54,966/- under section 36(1)(ii) of the Act, being bonus paid to the staff of the company by holding that such payments are in lieu of dividend or profits. (2) That the ld. CIT(A) has erred both on facts and in law in sustaining the action of the Assessing Officer in mistakenly concluded that the deduction claimed does revoke section 36(1)(ii) of the Act considering the 3CA report has been wrongfully mentioned as Rs.3,08,839/- as bonus paid to the employees without considering the facts that the bons payment to the employees shall not be equal to the profits or dividends subjected to be paid.
5. At the time of hearing, it was the submission of the ld. Counsel for the assessee that Schedule OI of the ITR shows NIL amount paid as bonus to the assessee’s employees, as per P&L Account, the assessee has claimed Rs.4,54,966/- as bonus paid to the employees and as per 3CA report, amount of Rs.3,08,839/- as bonus paid to the employees. It was further submitted that during the previous year 2017-18 for the relevant assessment year 2018- 19, the assessee paid bonus to employees Rs.3,08,839/- and charged in profit & loss account Rs.4,54,966/- and by mistake, in Sl. No. 20(a) of Form 3CD for the assessment year appeared as Rs.4,54,966/- instead of NIL. Consequently, ld. Assessing Officer made an addition of Rs.4,54,966/- with returned income of the assessee. Therefore, ld. Counsel for the assessee pleaded before the Bench that the addition made by the ld. Assessing Officer on (A.Y. 2018-2019) Radhanagar Cold Stores Pvt. Limited the basis of wrongful reporting in Form 3CD to be deleted on the merit of the case.
6. On the other hand, ld. Departmental Representative pleaded to confirm the order of ld. CIT(Appeals).
7. I have heard both the sides and perused the material available on record. It was the submission of the ld. Counsel for the assessee that the assessee paid bonus to its employees for an amount of Rs.3,08,839/- and charged in profit and loss account for an amount of Rs.4,54,966/- and by mistake, in Sl. No. 20(a) of Form 3CD for the impugned assessment year appeared as Rs.4,54,966/- instead of NIL and he contended that the ld. Assessing Officer made an addition of Rs.4,54,966/- with returned income of the assessee. Therefore, he further submitted that the addition made by the ld. Assessing Officer on the basis of wrongful reporting in Form 3CD to be deleted and also the ld. Assessing Officer should not treat the same for calculating income under section 115BBE and it should be calculated tax at normal rate as applicable. The assessee also filed a paper book to establish the said fact. Therefore, considering the facts and circumstances of the case, I am of the view that it is a fit case to remit the matter back to the file of ld. Assessing Officer to examine this issue afresh and if it is wrongly mentioned, then the addition made by the ld. Assessing Officer should be deleted. Hence, the grounds raised by the assessee are allowed for statistical purposes.
(A.Y. 2018-2019) Radhanagar Cold Stores Pvt. Limited 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 20/11/2025. Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 20th day of November, 2025 Copies to :(1) Radhanagar Cold Stores Pvt. Limited, 161, Rajakatra Building, 1st Floor, Netaji Subha Road, Burrabazar, Kolkata-700007
(2) Income Tax Officer, Ward-9(3), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069