2023 (5) TMI 911

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....nt to the Assessment Years 2018-2019 & 2020-21. First, we take up ITA No. 38/Rjt/2023 for AY 2018-19, an appeal by the assessee. 2. The assessee has raised the following grounds of appeal: 1. The learned ITO erred in law and on facts in passing the intimation order u/s.143(1) of IT Act, 1961 which is requested to be quashed. 2. The learned ITO erred in making addition of Rs.1272305/- being tax liability u/s.43B of the IT Act, 1961. 3. The only effective issue raised by the assessee is that the learned CIT(A) erred in confirming the addition made by the AO for Rs. 12,72,305/- under the provision of section 43B of the Act, which was disallowed in the intimation issued u/s 143(1) of the Act. 4. The facts in brief ....

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....disallowed statutory tax liability u/s 43B amounting to Rs. 12,72,305/- which had not been disallowed by the assessee in the return of income. The assessee has claimed that this expenditure was not debited to the P & L Account and therefore \here was no reason to disallow the above expenditure. The appellant has cited several case laws in support of its contention. The appellant was specifically asked vide notice of hearing dated 04.11.2022 to show with evidence that the impugned GST and Service Tax had not been debited in the P & L account but had been routed directed to the Balance Sheet. However, the assessee has not submitted any reply in response That being so, it cannot be held, that the assessee has not debited the impugned expenditu....

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....not routed through profit & loss account. The Ld. DR did not raise any objection if the matter is set aside to the file of the AO as per the provision of law. 9.1 Admittedly, the assessee did not file the Audited Financial statement before the Ld.CIT(A). However, the undisputed fact is this that the assessee has furnished the necessary item of profit & loss account in the return filed online along with the tax audit report. However, based on tax audit report, the disallowance was made under the provision of section 143(1) of the Act. 9.2 Be that, as it may be, the Ld.CIT(A), before rejecting the claim of the assessee should have referred the details furnished by the assessee in the income tax return before reaching to the conclusion t....