Case Law Details
Santi Kumar Oswal Vs ACIT (ITAT Kolkata)
Introduction: In the noteworthy case of Santi Kumar Oswal Vs ACIT, the Income Tax Appellate Tribunal (ITAT) Kolkata made a significant ruling regarding the disallowance of Goods and Services Tax (GST) under Section 43B of the Income Tax Act, 1961. The ITAT overturned a prior decision by the Commissioner of Income Tax (Appeals), stating that no disallowance can be made if GST is paid before the due date of filing the Return of Income (ROI). This article will delve into the details of this case, examining the arguments presented and discussing the implications of the ITAT’s verdict.
Analysis: The case revolved around the disallowance of GST worth Rs. 8,81,938, which the Assessing Officer (AO) had deemed was not paid by the assessee within the due date, and thus, was disallowed under Section 43B of the Act. The assessee contended that the GST was indeed paid before the due date of ROI filing, so it should be allowed as a deduction.
The ITAT Kolkata, upon careful review, found that the First Appellate Authority had not analytically considered the submissions of the assessee. There was no proper reasoning in the order that could justify the disallowance. The ITAT directed the First Appellate Authority to review the challans demonstrating the payment of GST before the due date of ROI filing. If found true, the deduction should be allowed to the assessee.
Conclusion: The case of Santi Kumar Oswal Vs ACIT serves as a valuable example of the rigorous application of the Income Tax Act. The ITAT Kolkata’s ruling emphasizes that no disallowance can be made for GST paid before the due date of filing the ROI. This ruling not only upholds the fair application of the Act but also offers clarity on the intricacies of GST deduction under Section 43B. Consequently, the appeal of the assessee was partly allowed for statistical purposes, and the matter was remitted back to the First Appellate Authority for further review.
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