Addition of expense of GST Return late filing fee cannot be made through intimation u/s 143(1): ITAT

In the matter of Ajit Kumar Khan vs DCIT, CPC, Bengaluru; Ranchi Tribunal has said that whether the amount of late filing fee paid for GST return is allowable or not is a debatable issue and cannot be the subject matter of addition in the intimation u/s 143(1) of the Act and cannot be added in a summary manner.

The issue raised in grounds nos. 1 and 2 is in respect of delayed payment of EPF & ESI which has been adjudicated by the recent verdict of the Hon’ble Supreme Court in Chekmate Services Pvt. Ltd. Vs. CIT (2022) 143 taxmann.com 178 (SC) dated 12.10.2022 wherein it has been held that “deduction u/s 36(1)(va) in respect of delayed deposit of amount collected towards employees’ contribution to PF cannot be claimed when deposited within the due date of filing of return even when read with Section 43B of the Income-tax Act,1961.”Accordingly, grounds no. 1 & 2 raised by the assessee were dismissed.

The issue raised in the ground no. 3 is against the confirmation of the addition of Rs. 57,350/- being a late fee for the filing of GST return.

ITAT Order:

5. After hearing the rival contentions and perusing the material on record, we find that the issue is debatable and whether the amount of late filing fee paid for GST return is allowable or not and cannot be the subject matter of addition in the intimation u/s 143(1) of the Act and cannot be added in a summary manner. Accordingly, we set aside the order of Ld. CIT(A) and direct the AO to delete the addition.

6. In the result, the appeal of the assessee is allowed.

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