Mismatch in Audit & ITR Columns – Tribunal Restores 43B Addition to AO

Vipul Medcorp Insurance Vs ACIT (ITAT Delhi)

Mismatch in Audit & ITR Columns – Tribunal Restores 43B Addition to AO- ITAT Delhi Restores CPC Additions on Gratuity & 43B Disallowance for Fresh Verification

Background

• Assessee filed ROI (24.10.2018) declaring ₹4.96 Cr.
• Processed u/s 143(1) by CPC on 02.11.2019 → income enhanced to ₹6.48 Cr. by adding ₹1.52 Cr.:

Gratuity disallowance u/s 40A(7): ₹16.53 lakh.

Mismatch in 43B disallowance: ₹22.32 lakh.

Employee contributions u/s 36(1)(va): ₹1.13 Cr.

• CIT(A) confirmed all additions.

Assessee’s Arguments

• Gratuity disallowance of ₹16.53 lakh already disallowed in ROI; CPC made double disallowance based on mismatch in Tax Audit vs ITR columns.
• For ₹22.32 lakh (bonus + gratuity payments), assessee claimed payments were duly made and correctly reported in ITR, though CPC picked mismatch from audit report.
• Filed ledger, balance sheet & ITR extracts before ITAT to support claim.

Tribunal’s Observations/ Decision

• CPC while processing return mechanically disallowed amounts without reconciling audit & ITR reporting.
• Assessee furnished documentary evidence to show disallowances were already made in ROI.
• In such cases, matter requires fresh verification by AO.
• Issues on ₹16.53 lakh gratuity & ₹22.32 lakh 43B mismatch remanded back to AO for de novo adjudication.
• AO directed to grant opportunity of hearing & consider evidences afresh.
• Ground on s.36(1)(va) disallowance not pressed → dismissed.
• Appeal partly allowed for statistical purposes.

FULL TEXT OF THE ORDER OF ITAT DELHI