TEKNI ENGINEERING PVT. LTD.,AHMEDABAD vs. THE ITO, WARD-4(1)(1), AHMEDABAD

ITA 1855/AHD/2024Status: DisposedITAT Ahmedabad03 January 2025AY 2022-23Bench: DR.BRR KUMAR, VICE PRESIDENT SHRI SIDDHARTHA NAUTIYAL (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the disallowance made in the intimation under Section 143(1) was erroneous as the same amount was added/disallowed twice. The Tribunal found that it was a technical and venial breach by the appellant company, leading to double disallowance and double taxation.

What were the facts?

The assessee company filed its return of income, and in the process, a disallowance for late payment of PF/ESI was made under Section 36(1)(iv) instead of Section 36(1)(va). The AO's intimation under Section 143(1) reflected a disallowance of Rs. 58,153/-, which was initially shown under Section 36(1)(iv) in the return and later rectified to Section 36(1)(va) and even mentioned under Section 43B in a rectification application.

What were the issues?

Whether the disallowance made in the intimation u/s 143(1) was justified when the same was already accounted for as a disallowance in the return and a rectification application was rejected, leading to double disallowance.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 36(1)(iv),Section 36(1)(va),Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: DR.BRR KUMARSHRI SIDDHARTHA NAUTIYAL

For Respondent: Shri V K Mangla, Sr. DR
Pronounced: 03.01.2025

PER: DR. BRR KUMAR, VICE PRESIDENT: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, vide order dated 28.08.2024 passed for the Assessment Year 2022-23. 2. The Assessee has taken the following grounds of appeal:-

1.

The A.O. as well as learned CIT(A) has erred in law and on facts while not considering that in the intimation u/s. 143(1) of the I. T. Act, 1961, the appellant company while filing the return of income for the late payment/deposit of PF/ESI has considered the disallowance under section 36(1)(iv) instead of section 36(1)(va) as

The order continues below.

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