ITAT Kolkata Judgments — March 2023

The Tribunal held that the impugned order passed by the CIT(E) under Section 263 was null and void because it failed to mention the Document Identification Number (DIN) as required by CBDT Circular No. 19/2019. Consequently, the revisionary proceedings were quashed.

The Tribunal found that the PCIT failed to consider the supplementary partnership deed submitted by the assessee. This deed clarified the contradictory clauses in the original deed and authorized partner remuneration as per Section 40(b) limits. Therefore, the revisionary action was not sustained.

The Tribunal upheld the order of the CIT(A), finding no infirmity. It concluded that the assessee failed to establish the use of entire borrowed funds in its business and therefore, the disallowance and capitalization of interest were justified.

The Tribunal upheld the PCIT's order, agreeing that the AO's assessment was erroneous and prejudicial to the revenue as rental income was wrongly classified as business income without proper verification. The assessment order was set aside and restored to the AO for fresh assessment.

The Tribunal dismissed the appeal, respectfully following the Supreme Court's decision in Chekmate Services Pvt. Ltd. The ruling stated that deduction under Section 36(1)(va) for delayed deposit of employee's PF/ESI contribution is not permissible even if deposited before the return filing due date.