This article provides a detailed account of the proceedings and final judgment in ITA No. 1860/DEL/2020 involving Blaser Swisslube Pvt Ltd and DCIT CPC, Bangalore. The case pertains to the assessment year 2017-18, and the order was pronounced on August 12, 2021.
Blaser Swisslube Pvt Ltd filed an appeal with the Income Tax Appellate Tribunal (ITAT) Delhi against the order dated 26.08.2020 by the Commissioner of Income Tax (Appeals)-2, New Delhi, which upheld the disallowances made by the Centralized Processing Center (CPC), Bangalore. The appeal was filed on November 16, 2020, challenging multiple disallowances under various sections of the Income Tax Act.
The case was heard by the Delhi Bench ‘A’ of the Income Tax Appellate Tribunal, with Shri Amit Shukla, Judicial Member, and Shri Prashant Maharishi, Accountant Member, presiding. The proceedings were conducted through video conferencing.
The appeal was filed against the intimation order issued by the CPC, Bangalore, under section 143(1)(a) of the Income Tax Act, 1961. The CPC made several disallowances, including:
Shri Priyansh Jain, C.A., representing the assessee, argued that the disallowances were unwarranted and resulted in double additions. He provided detailed computations and supporting documents to substantiate the claims.
Ms. Rinku Singh, Sr. D.R., representing the Revenue, supported the order of the lower authorities and emphasized the discrepancies noted by the CPC and the disallowances made accordingly.
The Tribunal carefully reviewed the submissions, documents, and arguments presented by both parties. The key findings and decisions are summarized below:
These grounds pertained to the disallowance of Rs. 8,91,765/- under section 36(1)(va) for late deposit of employee’s contribution to provident fund. The assessee withdrew these grounds as the adjustments were deleted in 154 proceedings. Consequently, these grounds were dismissed.
These grounds challenged the disallowance of Rs. 1,14,176/- under section 37. The Tribunal found that the disallowance resulted in double addition as the assessee had already accounted for this in its computation of total income. Therefore, the Tribunal directed the AO to delete the disallowance, allowing these grounds in favor of the assessee.
These grounds related to the disallowance of Rs. 18,06,719/- under section 40A(7) for gratuity provision. The Tribunal noted inconsistencies in the filing of the return and set aside these grounds back to the AO for verification and necessary adjustments if already disallowed by the assessee.
These grounds addressed the disallowance of Rs. 43,53,078/- under section 43B. The Tribunal found that the assessee had already disallowed a sum of Rs. 49,23,078/- in its return of income. The Tribunal directed the AO to verify the reconciliation and, if satisfied, to delete the disallowance.
This ground was consequential and related to the charging of interest under sections 234B, 234D, and 244A. It was dismissed as consequential in nature.
The ITAT Delhi ruled partly in favor of Blaser Swisslube Pvt Ltd, allowing the appeal for statistical purposes. The Tribunal directed the AO to verify and make necessary adjustments as per the findings. The final order was pronounced on August 12, 2021.
Order pronounced in the open court on August 12, 2021.
Signed by:
Shri Amit Shukla, Judicial Member
Shri Prashant Maharishi, Accountant Member
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