Abhay Kumar Jha Vs DCIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi has issued a ruling in the case of Abhay Kumar Jha against the Deputy Commissioner of Income Tax (DCIT), addressing appeals for Assessment Years 2017-18 and 2018-19. The Tribunal’s decision, pronounced on September 30, 2022, largely favored the assessee, particularly on issues related to disallowances under Section 43B and Section 36(1)(va) of the Income Tax Act, 1961.
Abhay Kumar Jha, proprietor of Elkosta Security System India and Millennium Meritech, had filed returns of income for both assessment years. For A.Y. 2017-18, the initial return declared an income of Rs.1,49,32,600/-. However, the Centralized Processing Centre (CPC), Bengaluru, through an intimation under Section 143(1), revised the total income to Rs.2,46,36,090/-, primarily due to a disallowance of Rs.96,41,926/- under Section 43B and disallowance of interest on TDS of Rs.61,562/-.
Aggrieved by this adjustment, Jha appealed to the Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi. While partial relief was granted, the assessee subsequently brought the matter before the ITAT.
Disallowance under Section 43B (A.Y. 2017-18)
The primary contention for A.Y. 2017-18 revolved around the disallowance of Rs.96,41,926/- under Section 43B of the Act. This amount represented various statutory dues, including DVAT, Service Tax, TDS, and Mumbai VAT. The CPC had made the disallowance on the premise of delayed payment of these amounts.
