ITAT Chennai Allows Transit Shortage Payment claim which was Compensatory Not Penal

Namakkal South India Transports Vs ACIT (ITAT Chennai) This appeal was filed by the assessee against the order dated 06.06.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2018-19. The assessee, a transport operator and Clearing & Forwarding Agent, had filed its return declaring NIL income. The case was selected for limited scrutiny to verify large expenditure claimed as penalty or fine and substantial loan squared up during the year. During assessment proceedings, the Assessing Officer (AO) observed that the as...