Loading judgment…
Facts
The assessee's income tax return for AY 2018-19 was processed by CPC, leading to disallowances for late employee PF contributions and a bonus amount of Rs. 14,03,538/-. The rectification application against this intimation was dismissed by the CIT(A). The assessee argued before the Tribunal that the bonus was paid before the due date for filing the return.
Held
The Tribunal held that since the bonus amount of Rs. 14,03,538/- was paid by the assessee before the due date of filing the income tax return, its disallowance under Section 43B or Section 36(1)(va) was incorrect. The order of the CIT(A) confirming this disallowance was set aside, and the Assessing Officer was directed to recalculate accordingly.
Key Issues
The key issue was the validity of disallowing a bonus amount paid before the income tax return due date, specifically concerning the interpretation of Section 43B and Section 36(1)(va) of the Income Tax Act.
Sections Cited
154, 36(1)(va), 143(1), 43B, 139(1), 44AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”A-Bench” JAIPUR
Before: SHRI GAGAN GOYAL, AM& SHRI NARINDER KUMAR, JM
vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER.
On 16.01.2025, appeal filed by the assessee appellant, before Learned CIT(A), NFAC, Delhi, while challenging order dated 25.07.2022 issued u/s 154 of Income Tax Act, 1961 (in short “the Act”), came to be dismissed, while observing as under:- “5.6 in view of the above, mandatory condition of making the payment of the employees contribution to the PF and ESI funds within 15 days of the close of every month, has not been fulfilled by the appellant so as to be entitled for claim of deduction u/s 36(1)(va) of the Act. Accordingly, the AO’s action of disallowing the amount on account of disallowance of bonus amount of Rs. 14,03.,538/- and M/S Rajasthan Knowledge Corporation Ltd., Jaipur. employees contrition to PF of Rs. 5,172/- is hereby confirmed and grounds of appeal filed by the appellant are treated as dismissed.”
Vide order dated 25.07.2022, rectification application filed by the assessee as regards intimation u/s 143(1) of the Act, issued on 16.10.2019, pertaining to the assessment year 2018-19, came to be rejected.
That is how, the assessee- appellant is before this Appellate Tribunal.
Arguments heard. File perused. 5. Admittedly, the assessee appellant filed Income Tax Return (ITR) for the assessment year 2018-19, on 28.09.2018. The case of the assessee was processed by Central Processing Centre (CPC) of the department and thereupon, intimation u/s 143(1) of the Act, came to be issued, which revealed that CPC made certain additions, including disallowance of a sum of Rs. 14,03.538/- towards bonus amount and a sum of Rs. 5,172/- towards employees contribution to PF, which was deposited late. 6. The assessee has challenged the impugned order passed by Learned CIT(A), on the ground that disallowance of bonus amount of Rs. 14,03,528/- paid by the assessee has been wrongly confirmed, without M/S Rajasthan Knowledge Corporation Ltd., Jaipur. taking into consideration that the said amount was paid on 17.09.2018 i.e. before the due date of filing of the return. In the course of arguments before us, Ld. AR for the appellant has raised only one contention that in view of the provisions of Section 43B of the Act, Learned CIT(A) erred in confirming disallowance of the bonus paid. No other argument has been advanced. It may be mentioned here that even in the written submission presented today on behalf of the appellant, Ld. AR has not challenged the impugned order passed by Learned CIT(A), on any other ground.
Ld. DR for the department has not disputed payment of the above said amount of Rs. 14,03,538/- by way of bonus on 17.09.2018 i.e. before due date of filing of return i.e. 30.09.2018.
As is available from copy of intimation u/s 143(1) of the Act, the assessee filed return on 28.09.2018.