Appeal allowed based on incorrect disallowance under Sec 43B; AO to revisit evidence.

The appeal was allowed for statistical purposes based on the observations made by the Judicial Member. It was found that the disallowance made by the Assessing Officer under section 43B was not warranted as the GST amount was indeed paid before the due date, despite being erroneously mentioned in the audit report. The matter was directed to be revisited by the AO to verify the authenticity of the documentary evidence provided by the assessee, and if substantiated, the disallowance under Sec 43B would be vacated.

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Issues Involved:
1. Disallowance u/s. 43B made by AO CPC in intimation u/s 143(1) for non-payment of GST erroneously mentioned in the audit report.
2. Non-admission of additional evidence filed under rule 46A regarding payment of GST.

Issue 1: The controversy in the present appeal revolves around the sustainability of the disallowance of Rs. 80,289/- made by the Assessing Officer under section 43B of the Income-tax Act. The assessee had filed the appeal against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Center (NFAC), Delhi, which arose from the intimation by the Centralized Processing Center (CPC)/A.O under Sec. 143(1) for the assessment year 2019-20. The disallowance was related to GST payment mentioned in the audit report but not paid by the due date of filing the return of income.

Issue 2: The second issue pertains to the non-admission of additional evidence filed under rule 46A regarding the payment of two challans of Rs. 44,530 and Rs. 37,000 towards GST, along with the certificate of the auditor and an affidavit confirming the payment. The assessee contended that the provisions of Sec 43B were not applicable as the GST amount was paid before the due date of filing the return of income.

The Judicial Member considered the facts and submissions from both parties. It was found that the auditor had mistakenly reported the GST payment in the wrong column in the audit report, leading to the disallowance by the AO. The revised audit report and supporting documents confirmed that the GST amount was indeed paid before the due date. The Judicial Member concluded that no disallowance under Sec 43B was warranted. The matter was directed to be revisited by the AO to verify the authenticity of the documentary evidence provided by the assessee. If the claim of timely GST payment is substantiated, the disallowance made by the AO under Sec 43B would be vacated. The appeal of the assessee was allowed for statistical purposes based on the observations made.

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