IDEAL CHEMI PLAST PVT LTD,THANE vs. ASST. DIRECTOR OF INCOME TAX, CPC, BANGALORE

Shri Satya Prakash Singh appearing on behalf of the assessee submitted that the assessee is in appeal against disallowance of contributions towards Provident Fund(PF) and gratuity Rs.8,72,245/- and amount payable to employees as bonus/commission Rs.75,97,577/- u/s.43B of the Income Tax Act, 1961 [in short ‘the Act’]. The ld.Authorized Representative of the assessee submitted that the return of income of the assessee for Assessment Year 2020- 21 was processed u/s. 143(1) of the Act vide intimation dated 18/12/2021. An addition of Rs.84,,69,822/- (Rs.8,72,245 + Rs.75,97,577) u/s. 43B of the Act was made stating to be discrepancy between the return of income and Audit Report. He asserted that the aforesaid amounts were not strictly required to be reported in Audit Report separately. The said amounts are part of total addition reported in Schedule BP-Part-A(Row-18) and included in Rs.95,86,092/-. The disallowance made u/s. 43B of the Act has resulted in disallowances of the same amount twice. The assessee carried the issue in appeal before the CIT(A). The assessee submitted that Bank Statement to show that the amount towards gratuity and PF were deposited well in time as provided in respective Acts. Further, the assessee had also furnished ledger account to show that the provision of bonus was for the period 01/04/2019 to 31/03/2020, pertaining to Assessment Year 2020-21. The CIT(A) without appreciating the documents on record confirmed the addition, hence, the present appeal. The ld.Authorized Representative of the assessee submitted that the Auditors of the assessee has issued fresh Certificate (at page 28 of paper book) the same was placed before the CIT(A), however, the same was not considered by him.

Per contra, Shri H.M.Bhatt representing the Department vehemently defended the impugned order and prayed for dismissing appeal of the assessee.