Case Law Details
Ajit Kumar Khan Vs DCIT (ITAT Ranchi)
The Income Tax Appellate Tribunal (ITAT) Ranchi recently adjudicated the Ajit Kumar Khan Vs DCIT case, focusing on the addition of late filing fees for GST returns. In its ruling, the ITAT held that these expenses couldn’t be added summarily through an intimation under section 143(1) of the Income Tax Act, 1961.
The Assessing Officer (AO) had made an addition for the late filing fee of GST returns, which was dismissed by the Commissioner of Income Tax (Appeals), stating it to be equivalent to the interest under section 201(1A) of the Act, which isn’t permissible.
However, ITAT Ranchi found the issue to be contentious and noted that the question of whether the late filing fee paid for GST returns can be allowed or not shouldn’t be added summarily in an intimation under section 143(1) of the Act. The tribunal thus overruled the order of the Commissioner and instructed the AO to delete the addition.
FULL TEXT OF THE ORDER OF ITAT RANCHI
This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)- NFAC, Delhi [hereinafter referred to as ‘Ld. CIT(A)’] dated 06.09.2021 for the assessment year 2019-20.
2. Issue raised in ground nos. 1 and 2 isin respect of delayed payment of EPF & ESI which has been adjudicated by the recent verdict of the Hon ’ble Supreme Court in Chekmate Services Pvt. Ltd. Vs. CIT (2022) 143 taxmann.com 178 (SC) dated 12.10.2022 wherein it has been held that “deduction u/s 36(1)(va) in respect of delayed deposit of amount collected towards employees’ contribution to PF cannot be claimed when deposited within the due date of filing of return even when read with Section 43B of the Income-tax Act, 1961. ”Accordingly ground no. 1 & 2 raised by the assessee are dismissed.
3. Issue raised in ground no. 3 is against the confirmation of addition of Rs. 57,350/- being late fee for filing of GST return.
4. Facts in brief are that the AO has made an addition for late filing fee of GST returns whereas the Ld. CIT(A) dismissed the same stating that the same to be at par with interest u/s 201(1A) of the Act which is also not allowable and thus dismissed the appeal of the assessee.
5. After hearing the rival contentions and perusing the material on record, we find that the issue is debatable and whether the amount of late filing fee paid for GST return is allowable or not and cannot be the subject matter of addition in the intimation u/s 143(1) of the Act and cannot be added in a summery manner. Accordingly we set aside the order of Ld. CIT(A) and direct the AO to delete the addition.
6. In the result, appeal of the assessee is allowed.
Order is pronounced in the open court on 6th June, 2023
