Smt. Veena Agarwal Vs DCIT (ITAT Lucknow)
The Income Tax Appellate Tribunal (ITAT), Lucknow Bench, has allowed an appeal filed by Smt. Veena Agarwal, an individual engaged in cloth trading, for the assessment year 2020-21. The Tribunal’s decision, pronounced today, sets aside an earlier appellate order from the Commissioner of Income Tax (CIT) and remands the matter for fresh consideration.
The appeal, filed beyond the prescribed time limit, was admitted after the assessee sought condonation of delay, citing unintentional circumstances. The Senior Departmental Representative for the Revenue did not object to the condonation request, leading the Tribunal to proceed with the hearing.
The core dispute originated from the Centralized Processing Centre (CPC) disallowing Rs. 24,22,448 under Section 36(1)(va) of the IT Act, pertaining to ESI/PF payments. This disallowance was based on information in Form 3CD. Smt. Agarwal contended that these payments were made on time, a submission she also made before the CIT(A), though it was not initially reflected in her audit report. The CIT(A) had previously dismissed her appeal.
Despite the assessee’s absence during the ITAT hearing, the Tribunal reviewed the records and the Revenue’s submissions. Recognizing the assessee’s grievance regarding the timely payment of ESI/PF, the ITAT has directed the CPC to re-examine the claim.
