The Pune bench of Income Tax Appellate Tribunal ( ITAT ) observed that disallowance made on the basis of delayed filing of Goods and Service Tax return without vouching the exact amount of GST discharged by extended due date. Therefore the bench directed readjudication .
The assessee Sharp Aluminium is a resident partnership firm filed its return of income on 29/07/2020 under Section 139(4) of the Income Tax Act declaring total income ₹1,91,15110/-.
The CBDT extended the due date of filing ITR from 30/09/2019 to 30/10/2019. On the basis of Tax Audit Report CPC disallowed a sum of ₹1,69,63,968/- u/s 43B of the Act for assessee’s failure to discharge statutory dues by actual payment within the due date of filing as prescribed u/s 139(1) of the Act and processed its ITR determining total income at ₹3,60,79,078.
Aggrieved, the assessee filed an appeal before the NFAC, who dismissed the appeal. Thereafter the assesse filed another appeal before the tribunal.
Assesee representative, MK Kulkarni argued that it is well settled law that belated ITR filed u/s 139(4) of the Act for all purpose is to be treated as filed u/s 139(1) of the Act and once it is so, belated payment of Good & Service Tax is protected from disallowance u/s 43B of the Act
Further the counsel argued that Both the tax authorities below however failed to appreciate the law properly, therefore have erred in disallowing the entire amount of GST for not discharging the same before the expiry of prescribed due date u/s 139(1) of the Act.
MG Jasnani, the Department representative submitted that the issue of disallowance of statutory dues/taxes paid after the expiry due date of filing as prescribed u/s 139(1) of the Act is no-more res-integra in the light of decision of various high courts hence the action of disallowance by tax authorities cannot be faulted with.
It was observed that the due date of filing ITR u/s 139(1) for AY 2019-20 was 30/09/2019 which was extended further by a month to 30/10/2019. The appellant however filed its ITR after the expiry of aforestated extended due date on 29/07/2020 wherein a claim against GST liability was made which by provisions of section 43B of the Act was subject matter of actual payment any-time before expiry of aforestated extended due date.
After reviewing the submissions, two-member bench of G. D. Padmahshal, ( Accountant member ) and Partha Sarathi Choudhury, ( Judicial Member ) remanding the matter back to the file of NFAC with a direction to deal with this limited issue in accordance with aforestated law & pass a speaking order in terms of section 250(6) of the Act.
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