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Facts
Soorya Prabha Hotels Pvt. Ltd. filed its return for AY 2018-19 declaring Rs. 7,31,56,540/-. The AO assessed income at Rs. 7,32,76,287/-, making additions for belated ESI remittance (Rs. 1,19,747/-) and donation (Rs. 7,000/-), and restricted the deduction u/s 80JJAA. The CIT(A) upheld the ESI disallowance but remanded the 80JJAA deduction issue back to the AO for re-examination, partly allowing the appeal.
Held
The Income Tax Appellate Tribunal dismissed the assessee's appeal. It held that no prejudice was caused to the appellant by the CIT(A)'s order which had already remanded the primary issue of Section 80JJAA deduction to the Assessing Officer for re-examination and decision.
Key Issues
Whether the restriction of deduction under Section 80JJAA was justified, and whether the disallowance of belated remittance of employees' ESI contribution was correctly upheld.
Sections Cited
143(3), 143(3A), 143(3B), 80JJAA
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI PRAKASH CHAND YADAV, JM
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 21.12.2021 for Assessment Year (AY) 2018-19.
Brief facts of the case are that the appellant is a company engaged in the business of hospitality services. The return of income for AY 2018-19 was filed on 29.09.2018 declaring total income of Rs. 7,31,56,540/-. Against the said return of income, the assessment Soorya Prabha Hotels Pvt. Ltd. was completed by the DCIT, Circle-1(1), Thiruvananthapuram (hereinafter called "the AO") vide order dated 03.02.2021 passed u/s. 143(3) read with sections 143(3A) & 143(3B) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 7,32,76,287/- after making addition of Rs. 1,19,747/- by disallowing belated remittance of employees’ ESI contribution and also donation of Rs. 7,000/-.
Against the said assessment order appeal was filed before the CIT(A), contending that the AO, without considering the submissions of the appellant restricted the deduction u/s. 80JJAA of to Rs. 65,25,799/- and also challenged the disallowance of belated contribution of ESI amount. The CIT(A), after due consideration of the submissions made during the course of proceedings before the NFAC, directed the AO to examine correctness of the claim while upholding the disallowance of belated payment of ESI contribution. Thus, the learned CIT(A) partly allowed the appeal filed by the assessee.
Being aggrieved, the appellant is in appeal before us in the present appeal.
When the appeal was called nobody appeared on behalf of the assessee, despite due service of notice of hearing. Therefore, we proceeded to dispose of the appeal after hearing the learned Sr. DR.
The only grievance of the assessee in the present appeal is restriction of deduction u/s. 80JJAA of the Act as claimed by the Soorya Prabha Hotels Pvt. Ltd. appellant. However, during the course of proceedings before the learned CIT(A) the appellant made a claim for deduction of higher amount. On due consideration of the submission made on behalf of the appellant, the CIT(A) had set aside the issue to the file of the AO for examining the claim and decide the same. We are of the considered opinion that no prejudice is caused to the appellant by the order of remand made by the learned CIT(A), therefore, we do not find any merit in the appeal filed by the assessee.
In the result, appeal filed by the assessee is dismissed.
Order pronounced in the open court on 11th February, 2025.