2022 (6) TMI 393

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....f facts are that the assessee had filed its return of income for the relevant year on 28.09.2010 declaring total income at Rs.4,14,00,347/- under the normal provisions of the Act. In the aforesaid return of income, the assessee had offered suo motu disallowance under section 43B of the Act amounting to Rs.10,024/-, Rs.18,27,770/- and Rs.65,33,395/- towards service tax, bonus and leave encashment respectively on provision basis. In the said return, the assessee had claimed deduction under section 43B of the Act amounting to Rs.5,06,300/-, Rs.15,03,060/- and Rs.66,58,305/- towards gratuity, bonus and leave encashment respectively on payment basis. Subsequently, the assessee noticed that it had made certain inadvertent mistakes while offering ....

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.... Act". Further, the Ld. CIT(A) directed the Assessing Officer to allow the claims of the assessee as per law and after carrying out necessary verification as per his satisfaction in respect of gratuity, bonus and leave encashment paid during the year under consideration. Thus ground nos. 5, 6 and 7 of appeal are allowed for statistical purpose. 3. No appeal has been preferred by the Department against the said order dated 25.07.2014 of the ld. CIT(A). Thereafter, the Assessing Officer passed an order u/s 251 read with section 143(3) of the Act dated 05.09.2014 giving effect to the order of the CIT(A) dated 25.07.2014 wherein the Assessing Officer missed to give effect/relief to the assessee in respect of aforesaid claim u/s 43B of the Ac....

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....presentatives of both the parties and gone through the record. We, with a heavy heart, note that the case is a perfect example of a case where the assessee has been a victim of error in the system and apathy on the part of the concerned Income Tax authorities. It is a simple case where the assessee had pleaded that while giving appeal effect to the order of the ld. CIT(A) dated 25.07.2014, the ld. Assessing Officer failed to give effect to the directions given by the ld. CIT(A) in respect of aforesaid claim of deduction u/s 43B of the Act raised vide Ground nos.5,6 & 7 in the appeal before him. A perusal of the order dated 05.09.2014 of the Assessing Officer giving appeal effect shows that the Assessing Officer has given relief/complied ....