BHUPINDER PAUL MAHAJAN,MANDI vs. DCIT CPC, BENGALURU

PER RAJ PAL YADAV, VP The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 13.11.2024 passed for assessment year 2021-22. 2. The brief facts of the case are that assessee has filed his return of income declaring net taxable income at Rs.2,23,14,610/-. This return was processed and taxable A.Y.2021-22 2

income was determined at Rs.2,88,13,610/-. In the Tax Audit
Report, the ld. Auditor has made an observation that GST of Rs.1,92,62,395/- was not deposited till the filing of the Audit
Report. The CPC Bangalore, on the basis of this Audit Report has made the disallowance of alleged GST amount.
3. The ld. counsel for the assessee, at the very outset submitted that assessee has made payment of Rs.65 lacs before the due date of filing of the return u/s 139(1), therefore, this amount of Rs. 65 lacs ought to be excluded from the total component of GST calculated and reported in Audit Report.
He further submitted that assessee itself disallowed a sum of Rs.1,27,62,395/-.
4. With the assistance of ld. Representative, we have gone through the record carefully. Section 43B contemplates that deduction of this nature of payment is to be allowed on actual payment basis. In other words, if assessee has actually paid the GST amount, then only deduction u/s 43B would be allowable to the assessee. The assessee has actually paid
Rs.65 lacs before the due date of filing of the return. Thus, it is entitled for this amount. The ld. CIT (Appeals) has failed to A.Y.2021-22
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appreciate this fact from the copy of the return and instead picked up the figure from the Audit Report.
5. The assessee has filed an application u/s 154 which has been rejected. We are of the view that ld. CIT (Appeals) has failed to appreciate that if GST was paid before the due date of filing of the return, then it is an allowable deduction.
Therefore, disallowance ought not to be there.
6. On due consideration of these facts, we are of the view that this issue deserves to be relegated to the AO only for a limited purpose to verify whether Rs.65 lacs have actually been paid by the assessee before the due date of filing of the return. In case it emerges out that it was actually paid, then deduction of Rs.65 lacs is to be allowed to the assessee.
Accordingly, this appeal of the assessee is allowed for statistical purposes.
7. In the result, appeal is allowed for statistical purposes.
Order pronounced on 27.08.2025. (KRINWANT SAHAY)
VICE PRESIDENT
“Poonam”
A.Y.2021-22
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आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to :

आदेशानुसार/ By order,
सहायक पंजीकार/