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2022 (5) TMI 1427 - ITAT INDOREDismissal of assessee appeal by CIT-A in limine - rectification-application u/s 154 against the Intimation u/s 143(1) - DR submitted that this route adopted by the assessee was not permissible in the issues involved and therefore the Ld. CIT(A) was justified in dismissing the appeal of assessee in limine - HELD THAT:- As decided in AKBAR MOHAMMAD PROP. M/S MOHD. RAFIQUE ASSOCIATES VERSUS THE ACIT, CPC, BANGLORE [2022 (2) TMI 479 - ITAT JODHPUR] assessee cannot be taxed on an amount on which tax is not legally imposable. Although, the assessee might have chosen a wrong channel for redressal of his grievance, all the same, it is incumbent upon the Tax authorities to burden the assessee only with correct amount of tax and not to unjustly benefit at the cost of tax payer. Therefore, in the interest of substantial justice, we deem it expedient to restore the issue to the file of the AO with a direction to pass appropriate orders deleting the addition / disallowance. Delayed payment of employees’ contributions to Provident Fund / Employees State Insurance (“PF / ESI”) - HELD THAT:- We observe that employees’ contributions to PF / ESI paid after due date under PF / ESI laws but within the time allowed u/s 43B i.e. upto the due date u/s 139(1) for filing of return is allowable as deduction in computing taxable income of business and the assessee had rightly claimed the same. AO was not justified in disallowing the claim of the assessee. We therefore accept this Ground of assessee and direct the Ld. AO to make suitable rectification by deleting the disallowance. Therefore, Ground allowed for statistical purpose. Disallowance of the credit of TDS - HELD THAT:- A bare reading of sub-rule (3)(i) of Rule 37BA makes it unambiguously clear that the credit of TDS shall be allowed in the year in which the relevant income is taxable. As can be seen from the submission of Ld. AR, the relevant-income out of which the TDS was deducted, had been offered by the assessee for taxation in the assessment-year 2017-18 according to the regularly followed method of accounting. Hence the credit of TDS deserves to be allowed in the assessment-year 2017-18 in accordance with the mandate of section 199 read with Rule 37BA. Lower authorities did not have occasion to verify the figures of relevant-income and TDS supplied by the assessee and whether the assessee has actually offered the relevant-income in the assessment year 2017-18 or not. Hence a complete verification is required. Therefore, we think appropriate to remit this issue back to the file of Ld. AO who shall give an adequate opportunity to the assessee, make the necessary verification and allow credit in terms of section 199 read with Rule 37BA. Needless to mention that the Ld. AO shall take a note of all the evidences produced by the assessee and thereafter decide the issue according to the law. Ground is therefore, allowed for statistical purpose.
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