TBO Tek Ltd. Vs Addl./Joint/Deputy/ACIT

Parties Involved

Facts Summary

This appeal by TBO Tek Ltd. for Assessment Year 2020-21 arises against the order of the CIT(A)/NFAC, Delhi, which made adjustments under section 143(1) of the Income Tax Act, 1961. The assessee company raised several grounds of appeal, primarily concerning the disallowance of Rs 44,92,782 regarding GST amount unpaid at the time of filing the Return of Income. The assessee argued that the GST collected from customers was not included in its turnover in the Profit and Loss Statement as per its Revenue Recognition Policy and that there was no obligation to report the GST collected under the turnover in the Profit and Loss Account. The outstanding GST payable was reported in the tax audit report under Clause 26(i)(B)(b) pertaining to section 43B of the IT Act.…

Legal Issues

• 1. Whether the CIT(A) erred in not deleting the adjustments made by the Assessment unit.
• 2. Whether the Assessment Unit erred in not considering the assessee’s response to the notice under section 143(1)(a).
• 3. Whether the Director of Income Tax - CPC erred in not appreciating the submissions of the assessee.
• 4. Whether the additions of Rs 44,92,782 regarding GST amount unpaid were correctly made.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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