ITO Vs RPJ Minerals Private Limited (ITAT Jabalpur)
ITAT Jabalpur held that disallowance under section 43B of the Income Tax Act on account of non-payment of Rural Infrastructure tax and dead rent needs verification. Accordingly, matter restored to the file of AO.
Facts- AO noted that assessee had not made payment of statutory dues and accordingly added back the same under section 43B of the Income Tax Act. It was submitted that rural infrastructure tax amounting to Rs.23,01,000/- (out of total amount of Rs.23,20,613/-) had been paid between 8.05.2017 and 29.05.2017. It was further submitted that the VAT of Rs.14,013/- that was due, had been paid on 19.04.2017. With regard to Dead Rent, it was submitted that, that was not an expenditure in the nature of tax, duty, cess of fee to which the provisions of section 43B would apply. Therefore, it was prayed that no disallowance with regard to the same was justified other than the sum of Rs.19,613/- on account of short payment of rural infrastructure tax and VAT.
Conclusion- Held that we deem it appropriate to restore this matter back to the file of the ld. AO so that the assessee may furnish the necessary evidences in this regard and the ld. AO may thereafter allow the relief under section 43B, if the evidence so warrants. We also restore the matter of payment of Dead Rent of Rs.1,56,603/- to the file of the ld. AO, so that the assessee may submit before the ld. AO as to how the provisions of section 43B are not attracted in respect of this amount and the ld. AO may thereafter take a decision in accordance with law.
