The Income Tax Appellate Tribunal (ITAT) Kolkata Bench held that there was no disallowance on account of the bonus outstanding paid before the due date of filing of return. As per the audit report it was concluded by the bench that the assessee was paid the amount before the due date of filing of return of income.
Assessee, Medica Hospitals Pvt. Ltd After filing the return of income it was processed u/s 143(1) of the Act . In the order under Section 143(1) of the Income Tax Act the AO CPC made disallowance on account of bonus outstanding and held that which was filed after filing the return of income.
Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (Appeal){ CIT(A)} . who allowed the appeal of assessee .
The CIT(A) held that bonus payable amount of Rs. 1,14,64,199/- as reported in tax audit report dated 28.09.2018 has been paid by the assessee before 29.10.2018. Thus the amount was paid before the due date of filing of return as the payment is not covered under Section 43AB of the Income Tax Act.
Aggrieved by the order, revenue filed an appeal before the tribunal.
The tribunal after reviewing the Tax audit report , other evidences and submissions of the both parties, the two member bench of Rajesh Kumar,(Accountant Member ) and Sonjoy Sarmal,(Judicial Member) observed that outstanding amount of bonus was paid after 29.09.2018 but on or before 29.10.2018. Thus the bonus was paid before the due date of filing of return .
Therefore the bench upholds the outstanding bonus amount paid before the due date of filing of return should not be disallowed .
S. M. Surana , counsel appeared for assessee and Vijay Kumar, counsel appeared for the revenue.
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