Peritus Exim Pvt. Ltd. Vs DCIT (ITAT Delhi)
The appeal before the Income Tax Appellate Tribunal (ITAT), Delhi, arose from the order of the Commissioner of Income-tax (Appeals), Panchkula dated 24.06.2025 for Assessment Year (AY) 2020-21. The assessee had filed its return declaring total income of Rs.3,93,87,570/- on 27.01.2021. In the return, the assessee had suo motu disallowed expenses of Rs.8,54,970/- under Part A – Other Information. These expenses comprised loss on sale of fixed assets amounting to Rs.1,98,108/- and personal expenditure relating to interest on taxes of Rs.6,56,862/-, and were disallowed in the computation of income and reflected in the tax audit report under Section 44AB.
The return was processed under Section 143(1) of the Income-tax Act, and an intimation dated 15.02.2021 was issued. In the intimation, the Assessing Officer (AO) again disallowed the same amount of Rs.8,54,970/- under Section 37(1), leading to a double disallowance. The assessee, under a bona fide belief, deposited a demand of Rs.2,90,398/- on 30.03.2022. Additionally, a refund of Rs.2,98,854/- for AY 2021-22 was adjusted against the same demand.
Subsequently, the assessee filed a rectification application under Section 154 of the Act, contending that the double addition constituted a mistake apparent on record. However, the rectification order dated 23.12.2022 again raised a fresh demand of Rs.2,81,940/- on account of the same double addition.
