ITAT Chennai Remands VRS Payment Disallowance to AO for Verification

ITO Vs Reliance Motor Company Ltd (ITAT Chennai) The Income Tax Appellate Tribunal (ITAT) Chennai Bench has issued an order partially allowing the Revenue’s appeal for statistical purposes in the case of ITO vs. Reliance Motor Company Ltd. The Tribunal’s decision, pronounced on December 9, 2024, addressed two primary disputes for the Assessment Year 1999-2000: the taxability of a loan as deemed dividend under Section 2(22)(e) of the Income Tax Act, 1961, and the deduction claimed for Voluntary Retirement Scheme (VRS) compensation payments. The case originated from an assessment reo...