Bombay HC Quashes ₹103 Crore Addition in AIF Assessment

Kedaara Captial Fund II LLP Vs Assessment Unit (Bombay High Court) In a significant judgment, the Bombay High Court has set aside a tax assessment order, along with its consequential demand and penalty notices, against Kedaara Capital Fund II LLP, a prominent Alternative Investment Fund (AIF). The court’s ruling provides clarity on a fundamental tenet of income tax law: an expense cannot be “added back” to an assessee’s income if it was never claimed as a deduction in the first place. The decision serves as a key precedent for entities with pass-through status, reinforcing...