2023 (1) TMI 619 - AT - Income Tax

Tribunal directs AO to verify revised audit report for AY 2020-21, issues on bonus, interest, deductions referred back

Tapan Roy Security Agency Versus Income Tax Officer, Ward-69 (1), New Delhi

Tapan Roy Security Agency Versus Income Tax Officer, Ward-69 (1), New Delhi - TMI Issues:1. Opportunity for submitting Revised Audit Report2. Disallowance of Bonus amount3. Disallowance of interest on Savings Bank Account4. Eligibility for deductions under Section 36(1)(ii) and Section 80TTA5. Further evidence submissionOpportunity for submitting Revised Audit Report:The appeal was against the order of the Commissioner of Income-tax (Appeals) regarding the assessment year 2020-21. The assessee contended that the Commissioner did not provide a reasonable opportunity for submitting the Revised Audit Report, which was submitted after the order. The Tribunal allowed this ground for statistical purposes, directing the Assessing Officer to verify the correctness of the revised report.Disallowance of Bonus amount:The dispute arose from the disallowance of a bonus amount claimed by the assessee. The Tax Auditor had identified a variance in the amount paid as bonus or commission, leading to disallowance under Section 36(1)(ii) of the Income Tax Act. The Commissioner upheld the disallowance due to the absence of a revised audit report or certificate from the Chartered Accountant. The Tribunal restored this issue to the Assessing Officer to verify the claim based on the revised report.Disallowance of interest on Savings Bank Account:Regarding the disallowance of deduction claimed under Section 80-TTA for interest earned on a savings bank account, the Tribunal found that the authorities failed to consider the evidence provided by the assessee, namely possession of a passbook reflecting the interest earned. The Tribunal restored this issue to the Assessing Officer for proper verification and potential grant of deduction.Eligibility for deductions under Section 36(1)(ii) and Section 80TTA:The Commissioner had denied deductions under Section 36(1)(ii) and Section 80TTA based on the information available in the return and Tax Audit Report. The Tribunal emphasized the need for proper evidence and certification by the Chartered Accountant to support any revised claims. The issue was restored to the Assessing Officer for further examination based on the correctness of the claims.Further evidence submission:The assessee was granted leave to provide further evidence or submissions during the appeal hearing. The Tribunal allowed the appeal for statistical purposes, indicating that the other grounds were general in nature and required no separate adjudication. The order was pronounced in open court on 11th January 2023.This detailed analysis covers the key issues raised in the legal judgment, providing a comprehensive understanding of the Tribunal's decision on each matter.