ITAT Upholds Deletion of ₹3.83 Cr Addition; AO’s Action Beyond Limited Scrutiny Mandate

ACIT Vs B. K. Sales Corporation (ITAT Delhi) In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Delhi has dismissed an appeal by the Revenue in the case of ACIT vs. B.K. Sales Corporation for Assessment Year 2015-16. The tribunal upheld the decision of the National Faceless Appeal Centre (NFAC), Delhi, which had deleted an addition of Rs. 3,83,08,176/- made by the Assessing Officer (AO) concerning inadmissible interest under Section 36(1)(iii) of the Income Tax Act, 1961. The core of the dispute revolved around the AO’s authority to make an addition beyond the specific rea...