The Income Tax Appellate Tribunal (ITAT) Kolkata Bench while restoring the matter before the First Appellate Authority (FAA) held that no disallowance could be on Goods and Service Tax paid before the due date of filing return of Income.
Santi Kumar Oswal, the taxpayer filed the appeal against the order of Commissioner of Income Tax (Appeals)[CIT(A)]by challenging the the disallowance made by ao by reason that GST was not paid by the assessee within the due date
While presenting the case before the appellate bench, Siddarth Agarwal, the representative of the assessee, contended that the Goods and Services Tax (GST) was paid prior to the deadline for filing the return. As a result, he argued that it should be permitted as a deduction. Additionally, he submitted copies of the challan as evidence to support his claim.
The Department representative P.P. Barman supported the decision of the lower authorities.
The tribunal while considering the appeal observed that order of CIT(A) would reveal that there is no head & tail in this order. The first Appellate Authority has not considered these submissions of the assessee in an analytical manner.
Consequently, the appeal filed by the assessee was granted by the Two -member bench, consisting of Rajpal Yadav (Vice President) and Rajesh Kumar (Accountant Member). The matter was remanded back to the FAA with the instruction to examine the challans that provided evidence of the GST payment before the return filing deadline. If the veracity of such payment is established, the first Appellate Authority shall proceed accordingly.
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