Date of Order: July 14, 2023
Case Number: ITA 2829/DEL/2022
Assessment Year: 2018-19
This case involves an appeal filed by SPL Industries Ltd, New Delhi, challenging the order of the DCIT, Circle-24(1), New Delhi, which upheld the disallowance under Section 36(1)(va) of the Income Tax Act, 1961, for the assessment year 2018-19.
The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘SMC’, consisting of Judicial Member Shri C.M. Garg, reviewed the case. The appellant filed the return of income for the assessment year under dispute and faced a disallowance for the alleged late payment of employee contributions to the provident fund and ESI. The appellant sought to introduce additional evidence to prove that the payments were made within the stipulated time.
The additional evidence included a screenshot of the EPF Challan Portal showing the due date for remittance of EPF for May 2017 and an email sent by the appellant to the EPF department. The appellant argued that these documents were not available or their significance was not recognized during the initial stages of the appeal.
The appellant, represented by Dr. Rakesh Gupta, Adv., Sh. Deepesh Garg, Adv., and Sh. Shrey Jain, Adv., argued that the disallowance was unjust as the payments were made on time, and the error occurred due to the incorrect understanding of the significance of the evidence at the time of the original appeal.
The respondent, represented by Sh. Om Parkash, Sr. DR, opposed the admission of additional evidence but did not dispute its relevance to the case.
The tribunal considered the submissions and admitted the additional evidence, recognizing its relevance to the appellant’s grievance. The tribunal noted that the case pertained to the disallowance made under Section 36(1)(va) of the Act, and the additional evidence was crucial for a fair adjudication of the appeal.
The tribunal decided to restore the matter to the Assessing Officer (AO) for fresh adjudication, directing the AO to consider the additional evidence and the appellant’s explanations. The AO was instructed to pass a new assessment order after providing adequate opportunity for the appellant to be heard, without being influenced by the previous assessment and appellate orders.
The ITAT allowed the appeal for statistical purposes, emphasizing procedural fairness and the importance of considering all relevant evidence in tax disputes.
This case highlights the significance of procedural compliance and the necessity for thorough verification of evidence in tax matters. The tribunal’s decision ensures that taxpayers are not penalized due to oversight or lack of awareness about crucial evidence during initial proceedings.
Order pronounced in the open court on July 14, 2023.
Judicial Member: Shri C.M. Garg
Assessee Representation: Dr. Rakesh Gupta, Adv., Sh. Deepesh Garg, Adv., and Sh. Shrey Jain, Adv.
Department Representation: Sh. Om Parkash, Sr. DR
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