ITAT Deletes Disallowance Caused by Clerical Error in Tax Audit Report

Henna Industries Pvt Ltd Vs ADIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi Bench, allowed an appeal filed by Henna Industries Pvt. Ltd. and directed the deletion of an addition of Rs. 9,30,705 made by the Centralized Processing Centre (CPC) under Section 143(1) of the Income-tax Act, 1961. The sole issue in the appeal for the Assessment Year (A.Y.) 2022-23 was the adjustment made by the CPC based on a perceived disallowance of expenditure under Section 43B of the Act, which reduced the assessee’s claimed business loss. Background and Clerical Error Henna Industries Pv...