HARISH KUMAR BIYANI,KOLKATA vs. A.C.I.T., CIRCLE - 34, KOLKATA, KOLKATA

The captioned appeal filed by the assessee, pertaining to assessment year 2015-16 is directed against the order passed by the Learned Commissioner of Income Tax (Appeal), Addl./JCIT(A)-10, Mumbai (hereinafter referred to as the ‘ld. CIT(E)’) dated 22.03.2024.

The only grievance of the assessee is that the disallowance on Security Transaction Tax (STT) to the tune of Rs.2,78,380/- and service tax of Rs.9800/- are uncalled for as the same has already been disallowed by the assessee in the computation of income and offered to tax. Prayer made to restore the matter to the file of the AO for necessary verification. Ld. DR was fair enough not to oppose the request made by the Ld. Counsel for the assessee.

We have heard rival contentions and carefully perused the material placed before us. The assessee is an individual and declared income of Rs.76,10,380/- in the e-return filed for AY 2015-16 on 30.09.2015. After the case being selected for limited scrutiny through CASS, assessment order framed on 12.12.20-17 making two additions namely, disallowance of STT and at Rs.2,27,380/- and disallowance of service tax of rs.9800/-. Though the assessee challenged the addition before the Ld. CIT(A) but since the appeal was delayed by 142 days, ld. CIT(A) dismissed the assessee’s appeal in limine by not condoning the delay and also not adjudicating the issues on merit.

We, however, observe that during the course of the appellate proceedings before the Ld. CIT(A), Ld. AR of the assessee filed the submission stating that the alleged disallowances are uncalled for because the same have already been offered tax by adding them to the income for the year. This fact is emanating out of the statement of facts filed in Form no. 35 where the assessee has stated that the disallowance so made are not warranted because the assessee had already disallowed the same in the computation of income. This fact has actually escaped the attention of the AO/Ld. CIT(A) resulting in double addition of the same amount. We, therefore, taking note of this fact, deem it appropriate to restore the matter to the file of the AO to carry out necessary verification after affording reasonable opportunity of being heard to the assessee and delete the disallowance if contentions of the assessee are found to be correct. Grounds of appeal raised by the assessee are allowed for statistical purposes.