JAINARAYAN H. JAISWAL,NAGPUR vs. DEPUTY COMMISSIONER OF INCOME TAX, CPC, BANGLORE

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ITA 335/NAG/2022Status: PendingITAT Nagpur06 May 2024AY 2019-2020Bench: SHRI SATBEER SINGH GODARA (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the appeal to the Assessing Officer for verification of the actual bonus payment. The taxpayer has the onus to prove all relevant facts.

What were the facts?

The assessee claimed a bonus payment of Rs. 8,80,158/-. The lower authorities disallowed this amount. The NFAC partly affirmed the disallowance without verifying actual payments.

What were the issues?

Whether the bonus payment made before the due date of filing the return of income is disallowable under Section 43B of the Act. Verification of actual bonus payments made by the assessee.

Which sections of the Income-tax Act were involved?

Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH :NAGPUR [VIRTUAL HEARING]

Before: SHRI SATBEER SINGH GODARA

Hearing: 20.03.2024Pronounced: 06.05.2024

ORDER This assessee’s appeal for assessment year 2019- 2020, arises against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/ 250/2022-23/1045513815(1), dated 15.09.2022, involving proceedings u/s.143(1) of the Income Tax Act, 1961 (in short “the Act”).

Heard both the parties. Case file perused.

2.

It emerges during the course of hearing that the assessee’s sole substantive grievance raised in the instant appeal is with regard to addition of Rs.8,80,158/- relates to bonus amount made in both the lower authorities’ respective

1.

2 ITA.No.335/NAG./2022 orders. Learned counsel for the assessee submitted that the assessee had paid the bonus amount before the due date of filing return of income and therefore, the same ought not to have been disallowed u/s.43B of the Act. The learned NFAC has partly affirmed the CPC’s order to the extent of Rs.49,216/- out of Rs.8,80,158/- without verifying the corresponding actual bonus payment(s) made by the assessee. Mr. Marathe could hardly dispute the clinching fact that the NFAC’s order has nowhere decided the assessee’s substantive grounds on merits in foregoing terms. Faced with this situation, I deem it appropriate in the larger interest of justice to restore the assessee’s instant appeal back to the Assessing Officer for verification of actual payment of bonus amount preferably within three effective opportunities of hearing, subject to the rider that it shall be the taxpayer’s onus and responsibility only to file and prove all the relevant facts in consequential proceedings. Ordered accordingly.

3.

This assessee’s appeal is allowed for statistical purposes in above terms.

Order pronounced in the open Court on 06.05.2024.

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