Chartered Accountant’s Error in Form 3CB confirms Addition of IGST Claim of ₹37.92 Lakh: ITAT remands Matter [Read Order]
The Tribunal observed on the Form 3CB submitted by the Chartered Accountant, which recorded the disputed IGST figure under the head “Not paid on or before the aforesaid date.” While this entry formed the basis for the disallowance, the IGST claim of ₹37.92 lakh failed for want of external verification led to the Tribunal’s decision to remit the matter for reassessment
The Income Tax Appellate Tribunal (ITAT), Jodhpur bench, dealt with the disallowance of an Input GST claim of ₹37.92 lakh that arose due to an erroneous entry made by the assessee’s Chartered Accountant (CA) in Form 3CB. The Tribunal held that since the claim had failed for want of external verification, the matter should be remanded to the jurisdictional Assessing Officer for fresh examination.
The Tribunal did not express any view on the merits of the IGST disallowance remanding the matter back to the jurisdictional Assessing Officer (AO) for reassessment after providing the assessee a reasonable opportunity of hearing.
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The appellant, Narain Dal and Oil Mills, Sadulshahar, Rajasthan against the order passed by the National Faceless Appeal Centre (NFAC), Delhi [CIT(A)], for Assessment Year 2018-19. The assessee had filed its return under Section 139(1) of the Act, which was processed under Section 143(1). Later, the assessee sought rectification under Section 154.
The Centralized Processing Centre (CPC), Bengaluru, however, confirmed additions concerning TDS adjustments of ₹3,96,118 and ₹53,279, as well as disallowance of IGST amounting to ₹37,92,383. The assessee aggrieved by the CPC order approached NFAC, which deleted the TDS additions. However, CIT(A) upheld the disallowance of the IGST claim.
The assessee contended that the addition of ₹37,92,383 under IGST was wrongly reflected in Form 3CB of the Tax Audit Report due to inadvertent error by its Chartered Accountant. Nevertheless, the necessary supporting documents were unavailable at the appellate stage.
Representing the Revenue Authorities, Brij Lal Meena, Additional CIT-DR, argued in support of the lower authorities’ orders and emphasized that the assessee had failed to produce any third-party verification or evidence from the GST Department to substantiate the IGST claim.
The Bench comprising Accountant Member Dr. Mitha Lal Meena and Judicial Member Anikesh Banerjee observed that the CIT(A) had rightly deleted the TDS-related additions since the assessee had furnished relevant payment challans under Section 194A and Section 194H.
However, regarding the IGST claim, the Tribunal noted that the assessee had failed to submit corroborative evidence. In consideration of the grounds of appeal and the claim of wrong reporting in Form 3CB, the Tribunal remanded the matter to the jurisdictional AO for fresh verification.
The appeal was thus allowed for statistical purpose.
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