Assessee is entitled to deduction 43B based on the tax audit report even though no supporting evidence for payment was produced before the AO

ACIT, New Delhi Vs Indian Farmer Fertilisers Co- op Ltd. (ITAT Delhi)- From the tax audit report, we also find that amount of Rs. 13,03,74,047/- has been shown as paid on or before due date for furnishing return of income for the previous year u/s 139(1) of the Act. Form 3CD has been prepared and signed by Rajnish & Associates, CA. The accounts of the assessee have been audited by statutory auditors. The assessee had filed the details of payment of Rs. 13,03,74,047/-. The assessee is entitled for deduction u/s 43B of the Act in respect of amount of Rs. 13,03,74,047/-. Accordingly, we do not find any infirmity in the order passed by the CIT(A) deleting the addition made u/s 43B of the Act.

Business expenditure and  Principle of consistency – Assessee is entitled to deduction u/s. 37 for provision for contribution of administrative expenses of Coop. Education fund as per Multi State Co-operative Society as in the preceding years, the AO itself allowed such claim and without any material change it cannot be rejected.

Expenses cannot be disallowed @ 100% of the exempted income earned and the dis-allowance was rightly restricted as per Rule 8D.

ACIT Vs Indian Farmer Fertilisers Coop Ltd

Decided by – ITAT Delhi

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