ITAT Mumbai Allows Deduction of Strike Compensation Paid by Registered Trade Union

Engineering Mazdoor Sabha Vs ACIT (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai, has allowed the appeal of the Engineering Mazdoor Sabha, a registered trade union, thereby deleting a disallowance of Rs. 2,30,000 in compensation expenses for the assessment year 2011-12. The tribunal’s decision was based on the finding that the tax authorities failed to provide any credible adverse material to substantiate the claim that the payments were not genuine, effectively overturning the orders of both the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals). The cas...