Corrtech Energy Limited Vs DCIT (ITAT Ahmedabad)
Delayed PF and ESI Deposits Remain Disallowable Due to Supreme Court Precedent; ITAT Restores Duty Drawback Addition for Fresh Verification Due to Incomplete Facts; Interest Disallowance Cannot Be Based on Assumptions of Fund Diversion: ITAT Ahmedabad.
The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, partly allowed the appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), for Assessment Year 2018-19. The assessee, engaged in manufacturing engineering goods, executing turnkey gas pipeline projects, providing cathodic protection systems, and other engineering services in domestic and international markets, had filed its return declaring total income of Rs.3,01,68,800. Following scrutiny assessment under Sections 143(3), 143(3A), and 143(3B) of the Income-tax Act, the Assessing Officer determined the total income at Rs.4,37,51,703 after making additions aggregating to Rs.1,35,82,903. These additions comprised disallowance of employees’ contribution to PF and ESI of Rs.9,23,776 under Section 36(1)(va), disallowance of interest on delayed payment of TDS amounting to Rs.1,88,738 under Section 37, disallowance of proportionate interest expenditure of Rs.98,63,435 under Section 37(1), and addition of duty drawback income of Rs.26,06,954.
The assessee’s appeal before the CIT(A) was dismissed ex parte due to non-appearance, leading to the present appeal before the Tribunal.
