Case Law Details
Bodycare Creations Limited Vs DCIT (ITAT Delhi)
ITAT find that the assessee has successfully demonstrated that the return of income filed by it has been subjected to provisions of Section 92E of the Act and consequently the due date available to the assessee is 30th November, 2017 relevant to Assessment Year 2017-18 in question in terms of Section 139(1) read with clause (aa) to Explanation-2 thereto. Consequently, impugned outstanding bonus claims to have been paid before 30th November, 2017, as vouched by tax audit report, cannot be disallowed under Section 43B of the Act. The action of the Revenue for resorting to disallowance under Section 43B thus cannot be countenanced in law. The assessee thus succeeds in its claim for deductibility of impugned bonus expense as claimed. The action of the CIT(A) is thus set aside and the Assessing Officer is directed to admit the bonus expense claimed by the assessee in accordance with law.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-II, New Delhi [‘CIT(A)’ in short] dated 29.08.2019 arising from the intimation order dated 19.11.2018 passed by the Assessing Officer (AO) under Section 143(1) of the Income Tax Act, 1961 (the Act) concerning AY 2017-18.
2. As per its grounds of appeal, the assessee has challenged the disallowance of bonus payment amounting to Rs.30,66,187/-carried out by revenue by taking resort to Section 43B of the Act alleging non-payment of outstanding liability before due date of filing of return of income stipulated under Section 139(1) of the Act.
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