VAT input credit shown only in the balance sheet cannot be taxed as income: ITAT Mumbai

DCIT Vs Jyoti Structures Limited (ITAT Mumbai) The revenue appealed against the decision of the CIT(A) dated 09/05/2025 for Assessment Year 2007–08. The additions disputed by the revenue included disallowance of VAT input credit, estimated commission on alleged accommodation entries, and notional interest on advances. The revenue argued that the CIT(A) erred in deleting VAT-related additions, reducing the estimated commission expenditure, and removing the notional interest adjustment. A search was conducted on the assessee and its group on 26/07/2011, followed by issuance of notice under Sec...