Siemens Limited vs. Asst. DIT
Parties Involved
Facts Summary
The assessee, Siemens Limited, a resident corporate entity, filed a return of income for the assessment year 2020-21. The Centralized Processing Centre (CPC) made an upward adjustment of Rs. 6,62,28,591/- on account of reversal of interest charged under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). The assessee contested this addition by appealing to the first appellate authority, which sustained the addition. The assessee then appealed to the Income Tax Appellate Tribunal, arguing that the interest provision was not claimed as a deduction and hence, the reversal should not result in an addition.…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the addition of Rs. 6,62,28,591/- on account of reversal of interest charged under section 23 of the MSMED Act is valid.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
2 precedents cited in this judgement.
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