Innovative Cuisine Pvt. Ltd. Vs ACIT (ITAT Ahmedabad)
The appeal before the Income Tax Appellate Tribunal, Ahmedabad concerned Assessment Year 2017–18 and arose from an order passed by the National Faceless Appeal Centre confirming multiple additions made under Section 143(3) of the Income-tax Act, 1961. The Tribunal first condoned a delay of 159 days in filing the appeal after accepting the assessee’s explanation that the delay occurred due to non-communication of the appellate order by its erstwhile Chartered Accountant and subsequent discovery only upon receipt of a penalty notice.
On merits, the assessee did not press grounds relating to violation of natural justice, and those were dismissed. The principal dispute related to disallowance of deduction under Section 80JJAA amounting to ₹56.56 lakh. The assessee had added 362 new employees during the year and claimed deduction in respect of 274 employees, contending that evidences such as salary details and EPF records were furnished. The Tribunal observed that the onus lay on the assessee to establish fulfilment of all statutory conditions for each employee, including the 240-day employment requirement. It noted that many employees had worked for less than 240 days, making them ineligible. However, it held that the Assessing Officer was not justified in rejecting the entire claim without verifying eligibility employee-wise, especially when partial evidence was available. The matter was therefore remanded to the Assessing Officer to verify compliance and allow deduction only in respect of employees who satisfied all conditions.
