Narain Dal And Oil Mills Vs ITO (ITAT Jodhpur)
The Income Tax Appellate Tribunal (ITAT), Jodhpur Bench, has set aside the appeal of M/s Narain Dal And Oil Mills, remanding the matter back to the jurisdictional Assessing Officer (JAO) for a fresh hearing and verification. The appeal pertained to the disallowance of a Goods and Services Tax (IGST) claim amounting to Rs. 37,92,383, which was confirmed by the Commissioner of Income-tax (Appeals), or CIT(A).
The dispute originated from a rectification order passed by the Central Processing Centre (CPC), Bengaluru, under Section 154 of the Income-tax Act, 1961, for the Assessment Year 2018-19. This order resulted in three additions to the assessee’s taxable income, based on information from the company’s Tax Audit Report (Form 3CB) under the heading “Not paid on or before the aforesaid date.” The additions included two separate TDS amounts of Rs. 3,96,118 and Rs. 53,279, as well as the contested IGST amount.
Upon filing an appeal with the CIT(A), the assessee provided documentation, including challans, to prove that the TDS amounts were indeed paid. Consequently, the CIT(A) deleted the TDS additions. However, the CIT(A) upheld the disallowance of the Rs. 37,92,383 IGST claim, stating that the assessee had failed to provide any “linking evidence” or documents from the GST department to support the payment claim. The assessee’s explanation alone was deemed insufficient for verification.
