The Income Tax Appellate Tribunal (ITAT), Kolkata bench, while considering an issue of invoking section 43B of the Income Tax Act, 1961 for non-payment of GST within the income tax return filing due date, has directed the Assessing Officer to consider the matter afresh after giving adequate opportunity to the assessee.
The two-Member bench comprising Shri Rajesh Kumar, Accountant Member & Shri SonjoySarma, Judicial Member has also asked the assessee to be vigilant in receiving notices and attending the proceedings and directed not to seek adjournment unless there is a reasonable cause for the same.
The assessee, M/s PBN Constructions (P) Ltd challenged the addition of Rs. 6,71,420/- for non-payment of GST within due date of under section 139(1) contending that since the assessee did not get any opportunity to appear before the AO to show the necessary document and its submission since the assessment order was passed by the CPC, Bangalore under section 143(1) of the Act and the assessee did not get any opportunity to submit their reply.
After hearing arguments from both the sides, the Tribunal held that since the assessment order is an exparte and no discussion has been made on merits of the case in respect of instant issue.
“Therefore, interest of justice, we set aside the impugned issue of non-payment of GST of Rs. 6,71,420/- within due date prescribed under the Income Tax Act by the assessee u/s 139(1) and remitted back to the file of the Ld. AO for deciding the issue raised before us by way of a speaking order,” the Tribunal said.
While concluding the bench added that “We also direct the assessee to remain vigilant in receiving the notices of hearing from the AO and should not request for any adjournment unless otherwise required for reasonable cause and should file all necessary documents at the time of hearing. Needless to mention that the assessee should be given proper opportunity of being heard.”
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