Ahluwalia Erectors & Fabricators Private Limited Vs DCIT / ACIT (ITAT Jaipur)
ITAT Jaipur held that the amount paid before due date of filing the return of income is not supposed to be disallowed under section 43B of the Income Tax Act even though the same was outstanding at the year. Accordingly, AO directed to verify the said aspect and pass appropriate order.
Facts- The appellant filed its ITR declaring total income at Rs. 81,73,179/- on 30.10.2019. The ITR was processed by the AO CPC on 18.06.2020 assessing total income at Rs. 2,77,00,386/-. The AO CPC disallowed the expenditure indicated in the Audit Report but not taken into account in computing total income in the return filed. Accordingly, disallowance of Rs. 1,95,27,206/- was made. CIT(A) upheld the disallowance. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee before the due date of filling the return paid amount be allowed while computing the income of the assessee. Second the amount debited to the profit and loss account for the year under consideration can only be disallowed and in that the amount which was not realized the cum tax benefit be given. The arguments of the assessee and we are of the considered view that both plea of the assessee are in accordance with the law as section 43B of the Act specify that amount paid before the due date of filling the return of income is not supposed to be disallowed even thought the same was outstanding at the year. So far as the arguments of the amount debited to the current year be disallowed is also correct and cum tax benefit is nothing but amount of debtor not being realized be considered accordingly. Ld. AO is directed to verify this aspect of the matter and pass appropriate order in accordance with law.
