TCS reported as payable in Audit Report cannot be added back to income u/s 43B

Aay Kay Manufacuring Co. Vs ITO-CPC (ITAT Amritsar)

The recent ruling by the Income Tax Appellate Tribunal (ITAT) in Amritsar on the case of Aay Kay Manufacturing Co. versus the Income Tax Officer – Central Processing Centre (ITO-CPC) has garnered significant attention. The crux of the dispute revolves around the addition of Rs. 4,83,000 by the CPC, Bangalore, under Section 43B of the Income Tax Act, 1961, for not depositing the Tax Collected at Source (TCS) amount within the stipulated timeframe.

Background of the Case

Aay Kay Manufacturing Co., engaged in the business of trading scrap, filed an appeal against the order of the Joint Commissioner of Income Tax (Appeals) [JCIT(A)]—12, Mumbai. The JCIT(A)’s order, dated September 15, 2023, upheld the addition made by the CPC, Bangalore, under Section 43B for the non-deposition of TCS amounting to Rs. 4,83,000.

Grounds of Appeal

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