Magnaquest Technologies Limited Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad held that deduction claimed under section 43B of the Income Tax Act supported by necessary documentary evidences is allowable. Accordingly, deduction allowed to the extent relevant evidences are furnished.
Facts- The appellant-company is a limited company. The case was selected for scrutiny and notice u/s.143(2) of the Income Tax Act, 1961 dated 22.09.2019 was issued and served on the assessee. During the course of assessment proceedings, AO noticed that, the assessee has claimed an amount of Rs.4,10,61,665/- as any other amount allowable as deduction in Schedule-BP of ITR-6 filed for the assessment year under consideration. AO after considering the relevant submissions of the assessee observed that, the assessee has nothing to say to explain the amount of deduction claimed under Schedule-BP of ITR-6 amounting to Rs.4,10,61,665/- and thus, made addition of Rs.4,10,61,665/- to the total income of the assessee.
CIT(A) dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
Conclusion- Since, the appellant has furnished confirmation from the Bank along with challans for payment of TDS, in our considered view, the deduction claimed by the assessee under any other amount allowable as deduction in Schedule-BP of ITR-6 towards unpaid liabilities for the assessment year 2017-2018, upon payment for the financial year 2017-2018 relevant to assessment year 2018-2019 should be allowed. Further, deduction claimed u/sec.43B of the Act is supported by necessary ITR-6 filed for the assessment year under consideration and tax audit report issued by the Auditor, where the amount has been certified. Therefore, we are of the considered view that, the Assessing Officer is erred in disallowing a sum of Rs.1,66,44,340/- towards any other amount allowable as deduction in Schedule-BP of ITR and thus, we direct the Assessing Officer to delete the addition of Rs.1,66,44,340/- towards TDS, out of total disallowances of Rs.4,10,61,665/-.
