ITAT Deletes Software Expense Disallowance for Lack of Evidence of Sham Transactions

ACIT Vs Karunya Educational And Research Trust (ITAT Chennai) The Income Tax Appellate Tribunal (ITAT), Chennai, dismissed the Revenue’s appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2022-23 concerning disallowance of software maintenance and development expenses claimed by the assessee trust. The assessee, a trust operating under the name “Karunya Educational and Research Trust,” had filed its return declaring nil income. During scrutiny proceedings, the Assessing Officer (AO) examined payments amounting to Rs.2.20 crore claimed as sof...