Disallowance of sums paid as bonuses, leave with wages & leave encashment -ITAT directs re-adjudication

Eastman Exports Private Limited Vs DCIT (ITAT Chandigarh)

Introduction: The case of Eastman Exports Private Limited Vs DCIT saw the Income Tax Appellate Tribunal (ITAT) in Chandigarh tackling a dispute on tax audit report’s date and its corresponding implications on tax deductions. Misinterpretation of these dates led to a disagreement over disallowed deductions worth Rs. 17,53,799/-, which had reportedly been paid before filing the return.

Analysis:

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