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Facts
The assessee, Parijat Hotels Private Limited, filed an appeal against the rejection of its claim for deduction under Section 43B of the Income Tax Act for property tax payment of Rs. 49,23,855/- made to the Pune Cantonment Board for AY 2021-22. The claim was initially rejected by the CPC, AO, and CIT(A) on grounds that it was not made in the original ITR or a revised return, and no apparent mistake existed in the intimation order u/s 143(1)(a). The revenue authorities acknowledged that similar disallowances were made by the assessee suo motu in AY 2018-19 and 2019-20, with the payment made in FY 2020-21, and the assessee cited the COVID-19 pandemic and ignorance for not claiming the deduction earlier.
Held
Considering the facts, circumstances, and practical difficulties faced by the assessee during the COVID-19 pandemic, the Tribunal decided to grant another opportunity. The matter was remitted back to the Jurisdictional Assessing Officer to verify the assessee's claim for deduction u/s 43B for the payment made in FY 2020-21 and to confirm if similar disallowances were made in prior assessment years. If the claim is found to be correct upon verification, the JAO is directed to allow it.
Key Issues
Whether the claim for deduction u/s 43B for property tax payment, not initially made in the ITR, should be allowed given the COVID-19 pandemic and earlier similar disallowances.
Sections Cited
154, 43B, 143(1)(a)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & MS. ASTHA CHANDRA
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2021-22 is directed against the order dated 22.08.2025 framed by Addl./JCIT(A)-1, Coimbatore arising out of Rectification Order dated 24.11.2023 passed u/s.154 of the Income Tax Act, 1961 (in short ‘the Act’).
The sole grievance of the assessee is that the claim of deduction u/s.43B of the Act at Rs.49,23,855/- has not been allowed by the Revenue authorities.
We have heard the rival contentions and perused the record placed before us. We observe that the assessee is a Private Limited and return of income for A.Y. 2021-22 has been filed on 05.02.2022 and the returned income at Parijat Hotel Private Limited Rs.61,05,900/- has been accepted by the CPC. Subsequently, assessee filed application u/s.154 of the Act claiming that valid claim of deduction u/s.43B of the Act for the property tax payment made to Pune Cantonment Board totalling to Rs.49,23,855/- has not been allowed. However, Ld. Assessing Officer rejected his application stating that there is no apparent mistake in the order of CPC as no such claim has been made in ITR. Before ld.CIT(A) also assessee failed to succeed as ld. CIT(A) has also observed that there is no apparent mistake in the intimation order u/s.143(1)(a) of the Act and further, assessee has not filed revised return making such claim.
So far as merits of the case are concerned, it has been admitted by the Revenue authorities that certain disallowances u/s.43B of the Act were suo motu made by the assessee during A.Y. 2018-19 and 2019-20 and thereafter when the assessee had made the payment during F.Y. 2020- 21. Due to covid-19 pandemic restrictions period and due to mere ignorance valid claim could not be made and prior to revising the return CPC has already processed the original return. Assessee has filed copy of receipt issued by Pune Cantonment Board placed at pages 30 to 35 of the paper book. Copy of Income-tax returns for A.Y. 2018-19 and 2019-20 are also placed before us. Books of account of the assessee are duly audited.
Under these given facts and circumstances and in the larger interest of justice and considering the practical problems faced by the assessee during covid-19 pandemic period, we deem it proper to afford one more opportunity to the assessee by remitting the issues raised in the instant Parijat Hotel Private Limited appeal to the file of ld. Jurisdictional Assessing Officer for the limited purpose of verifying the assessee’s claim of deduction u/s.43B of the Act for the payment made to Pune Cantonment Board during F.Y.2020-21 and also to verify whether assessee had made disallowance in the computation of income for A.Y. 2018-19 and A.Y. 2019-20 as claimed before us. Further after due verification, if the claim of the assessee is found to be correct, then ld. JAO shall allow the same. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
6. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 16th day of February, 2026.