ITA No. 1180/KOL/2024 M/s Multi Service Vs ITO, Ward-30(1), Kolkata

Parties Involved

Facts Summary

The case involves an appeal by the assessee against the order of the Commissioner of Income Tax (Appeals) passed under section 250 of the Income Tax Act, 1961, for the Assessment Year 2018-2019. The assessee's return of income was selected for complete scrutiny on the issue of excess contribution to provident fund, superannuation fund, or gratuity fund. Notices under section 142(1) were issued to the assessee seeking clarification and supporting documents regarding the claimed contribution to the provident fund exceeding the statutory limit of 27% of salary. The assessee had claimed a deduction for contribution to the recognized provident fund of ₹36,99,862, which was in excess of the statutory limit of 27% of the salary. The Assessing Officer disallowed the deduction and added the amount to the income of the assessee. The assessee appealed against this order before the Commissioner of Income Tax (Appeals), which was dismissed. The assessee then filed an appeal before the Tribunal.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in affirming the addition of a sum of ₹36,99,862/- to the income of the Appellant.
• 2. Whether the Ld. CIT(A) erred in affirming that the Appellant has claimed excess contribution of ₹9,89,320/- towards contributions to Recognized Provident Funds.
• 3. Whether the Ld. CIT(A) erred in adding back the entire sum of ₹36,99,862/- to the income of the Appellant.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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