Case Number: ITA 3001/DEL/2022
Appellant: Vivek Dutta, Faridabad
Respondent: DCIT, Circle 2(1), Faridabad
Assessment Year: 2019-20
Case Filed On: 2022-12-23
Order Type: Final Tribunal Order
Date of Order: 2023-08-29
Pronounced On: 2023-08-29
In the case of Vivek Dutta vs. DCIT, Circle 2(1), Faridabad, the appellant, Vivek Dutta, challenged the penalty levied under Section 271 (1) (c) of the Income-tax Act, 1961, for the assessment year 2019-20. The case was heard by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘H’ on 29th August 2023, with the final order pronounced on the same day.
The appeal arose from the order passed by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi on 3rd November 2022. The appellant, represented by Shri S.B. Gupta, CA, contended that the addition in the intimation under Section 143(1) of the employees’ contribution to ESI was based on incorrect dates reported in the tax audit report (Form 3CD).
During the proceedings, the counsel for the appellant argued that the due date for payment of employees’ contributions towards ESI for September 2018 was 15th September 2018. The contributions were deposited on 14th September 2018, well within the due date. However, due to a typographical error, the tax audit report incorrectly recorded the payment date as 14th September 2019, leading to unjustified additions.
The ITAT bench, comprising Shri Narendra Kumar Billaiya (Accountant Member) and Shri Kul Bharat (Judicial Member), noted the appellant’s reliance on the actual payment date and recognized the typographical error in the tax audit report. The tribunal directed the Assessing Officer (AO) to verify the actual payment date and, if confirmed to be within the due date, delete the addition.
The tribunal’s order stated: ‘The AO is directed to verify whether for AY 2019-20, the assessee had made the deposit within the time, and if so, the AO would delete the addition.’
The appeals for the assessment year 2019-20 were allowed for statistical purposes, meaning the matter was sent back to the AO for verification.
The ITAT’s decision underscores the importance of accurate reporting and the potential consequences of typographical errors in tax documents. It also highlights the role of the AO in verifying the facts before making additions based on such errors.
Order Pronounced: In the open court on 29th August 2023.
Bench: Shri Narendra Kumar Billaiya, Accountant Member and Shri Kul Bharat, Judicial Member
Copy forwarded to:
Date of Hearing: 29th August 2023
Date of Order: 29th August 2023
Vivek Dutta vs. DCIT, Circle 2(1), Penalty under Section 271 (1) (c) Appeal for AY 2019-20
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