Gourav Bhargava Vs ACIT (ITAT Indore)
The assessee appealed against the order dated 09.12.2024 of the Commissioner of Income Tax (Appeals), Delhi, which upheld additions made in the intimation issued under section 143(1) for Assessment Year 2023-24. The appeal before the Tribunal was delayed by 23 days. The assessee filed an application supported by an affidavit explaining that the delay was due to time taken to prepare the case accurately, asserting absence of negligence or mala fide intention. The Department raised no objection. The Tribunal noted that section 253(5) permits condonation of delay on showing “sufficient cause,” and referred to the Supreme Court’s principle that substantial justice prevails over technical considerations. Finding the cause sufficient, the Tribunal condoned the delay and admitted the appeal.
The assessee had filed the return of income declaring Rs. 40,17,574, which the CPC processed by making certain additions and determining income at Rs. 53,93,910. The assessee filed a first appeal but failed to make representations, leading to dismissal for non-prosecution. The assessee then approached the Tribunal, raising ten grounds, though only Grounds 5, 6 and 7 were pressed; the remaining were dismissed as general or not pursued.
Ground 5 concerned the disallowance of Rs. 10,00,000 under section 43B relating to bonus payable to employees. The CPC had disallowed Rs. 10,12,218 under section 43B, consisting of Rs. 10,00,000 towards bonus and Rs. 12,218 towards professional tax. As Ground 9 regarding the professional tax disallowance was not pressed, only the bonus component remained in dispute. The assessee had claimed Rs. 10,00,000 as provision for bonus in the profit and loss account and reflected it as a liability in the balance sheet. The tax auditors had reported the unpaid bonus of Rs. 10,00,000 in the Tax Audit Report prepared on 30.09.2023. However, the assessee subsequently paid the bonus between 04.10.2023 and 07.10.2023, which was before the due date for filing the return under section 139(1), i.e., 31.10.2023. Section 43B allows deduction where such payments are made before the due date of filing the return. The assessee furnished additional evidence including a working of bonus payable, a statement of date-wise payments, payment vouchers acknowledged by employees, and a confirmatory affidavit from auditors. Since these documents required verification, the Tribunal remanded the matter to the Assessing Officer for limited verification and directed deletion of the disallowance if the payments were found to have been made within the permissible period. Thus, Ground 5 was allowed for statistical purposes.
