Income Tax Officer – 26(2)(1) v/s. Svadeshi Enterprises
Case No: ITA No.5865/MUM/2024
Court: INCOME-TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI
Date: 1/6/2026
Parties Involved
RespondentIncome Tax Officer – 26(2)(1)
AppellantSvadeshi Enterprises
Facts Summary
The assessee, Svadeshi Enterprises, filed its return of income declaring income of Rs.2,56,43,720/-. The case was selected for scrutiny, and the Assessing Officer disallowed an expense of Rs.3cr pertaining to payment to occupants/tenants, considering it a contingent liability. On appeal, the Commissioner of Income-tax (Appeals) allowed the deduction. The assessee raised a cross-objection regarding the jurisdiction of the Assessing Officer, claiming that the Income Tax Officer did not have the au…
Decision in favour of
Partly Assessee / Partly Revenue
Legal Issues
- 1. Whether the Ld.CIT(A) was correct in allowing deduction on account of liability for payment for vacating occupants/tenants.
- 2. Whether the Ld.CIT(A) was correct in allowing deduction without appreciating that the provision of Rs. 3 Crore during the year does not partake the character of an ascertained/accrued liability.
2 more legal issues analysed in this judgement.
Precedents Relied Upon
6 precedents cited in this judgement.