Apar Industries Ltd. Vs DCIT (ITAT Mumbai)
The Income Tax Appellate Tribunal, Mumbai, decided cross appeals filed by the assessee and the Revenue against the order of the Commissioner of Income Tax (Appeals)-54, Mumbai dated 08.12.2025 for Assessment Year 2016-17. The assessee challenged the rejection of its fresh claim for deduction under Section 32AC, while the Revenue challenged the restriction of disallowance under Section 14A read with Rule 8D.
With respect to the assessee’s appeal, the authorised representative submitted that the issue was covered by the Tribunal’s decision in the assessee’s own case for Assessment Year 2015-16, where identical grounds had been restored to the file of the Commissioner (Appeals). The Tribunal considered the earlier decision, which noted that the assessee had raised an additional claim for deduction under Section 32AC during appellate proceedings. The Assessing Officer, in the remand proceedings, had stated that such a fresh claim should have been made through the return of income or a revised return, relying on Goetze India Ltd. v. CIT. However, the remand report also recorded that the documentary evidence, including bills, details of plant and machinery, delivery challans, installation records and banking transactions, had been verified and found to be in consonance with the documents produced.
