Maruti Enterprise Vs ADIT(CPC) (ITAT Rajkot)
The case of Maruti Enterprise versus the Assistant Director of Income Tax (CPC) (ITAT Rajkot) revolves around the disallowance of a deduction under section 43B of the Income Tax Act, 1961. Here’s a detailed summary of the order:
Maruti Enterprise filed an appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, concerning the intimation generated under section 143(1) of the Income Tax Act for the Assessment Year 2019-2020.
The only issue raised by the assessee was the disallowance of Rs. 47,83,396/- in the intimation generated under section 143(1) of the Act.
The disallowance was made because the deduction claimed by the assessee under section 43B of the Act was not matching with the information provided in the tax audit report. Consequently, the amount was added to the total income of the assessee.
The assessee appealed to the Commissioner of Income Tax (Appeals) [CIT(A)], who upheld the decision of the Assessing Officer (AO).
Before the ITAT, the Authorized Representative (AR) of the assessee argued that the deduction was disallowed merely due to a mismatch in the tax audit report, even though the deduction was legitimately claimed based on actual payments made. The AR contended that genuine claims of the assessee should not be denied solely on the basis of discrepancies in documents, especially when all necessary details were available to the revenue authorities.
