Assessee's Appeals Granted: Remand for Fresh Adjudication

The appeals by the Assessee against the National Faceless Appeal Centre's order regarding assessment orders under s. 143(1) of the Income Tax Act for the Assessment Years 2018-2019 & 2020-21 were successful. The Tribunal allowed both appeals for statistical purposes and remanded the matters to the Assessing Officer for fresh adjudication based on the Assessee's commitment to provide audited financial statements to support their claims.

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Issues involved:
The judgment involves appeals by the Assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi regarding assessment orders under s. 143(1) of the Income Tax Act, 1961 for the Assessment Years 2018-2019 & 2020-21.

Issue 1: Appeal for AY 2018-19
The Assessee challenged the addition of Rs. 12,72,305 under section 43B of the Act, disallowed in the intimation issued under section 143(1) of the Act. The Assessee contended that the liability on account of GST was not passed through the profit & loss account but routed through the balance sheet. The CIT(A) upheld the addition, stating that the Assessee failed to provide evidence that the GST amount was not debited in the profit & loss account. However, the Assessee requested to set aside the issue to the AO, offering to submit audited financial statements to prove the claim. The Tribunal agreed to give the Assessee another opportunity to furnish necessary details and set aside the matter to the AO for fresh adjudication.

Issue 2: Appeal for AY 2020-21
The issue raised by the Assessee for AY 2020-21 mirrors the one for AY 2018-19. The Tribunal decided that the findings for AY 2018-19 would also apply to AY 2020-21. As the grounds of appeal were identical, the appeal for AY 2020-21 was allowed for statistical purposes, following the decision made for AY 2018-19.

In conclusion, both appeals by the Assessee were allowed for statistical purposes, and the matters were set aside to the AO for fresh adjudication in light of the Assessee's submission of audited financial statements.

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