ITAT Deletes GST Refund Addition as Tax Was Not Claimed as Expenditure

LKQ India Private Limited Vs DCIT (ITAT Bangalore) The Income Tax Appellate Tribunal (ITAT), Bangalore partly allowed the assessee’s appeal against the addition of ₹2,34,40,921 made during processing under Section 143(1) for AY 2021-22. The dispute concerned whether a GST refund was taxable where the assessee followed the exclusive method of accounting. The assessee contended that GST paid on purchases and expenses was not debited to the profit and loss account but recorded separately as GST refund receivable under loans and advances, and therefore the refund was neither credited to the pr...