Dalip Singh Rathore Vs ITO (ITAT Delhi)
ITAT Delhi deleted a ₹45.69 lakh disallowance made by CPC under Section 43B for unpaid GST/Service Tax. Tribunal held disallowance was invalid because assessee had not claimed taxes as an expenditure in Profit and Loss Account.
The appeal was filed by the Assessee, Dalip Singh Rathore, challenging the order of the Ld. Addl./JCIT(Appeals)-2, Vishakhapatnam, dated January 27, 2025, for the Assessment Year (A.Y.) 2018-19.
The Assessee raised several grounds of appeal against an Intimation processed under Section 143(1) of the Income-tax Act, 1961, dated December 13, 2019. The Assessee contended that the Intimation was invalid and unlawful/illegal on its face, arguing it was contrary to the mandate of the Act, violated principles of natural justice (specifically by being passed without any prior Show Cause Notice/SCN), and dealt with subject matter not falling under the statutory purview of Section 143(1), suggesting the only available option was a notice under Section 143(2).
The core of the dispute concerned a specific adjustment made in the Section 143(1) Intimation. The Centralised Processing Centre (CPC) made a disallowance of ₹45,69,143/- under Section 43B in respect of Goods and Services Tax (GST) and Service Tax. The CPC’s reason for this disallowance was that the amounts were not paid before the due date for filing the return of income.
