Reversal of Unclaimed MSMED Interest Cannot Trigger Tax Addition

Siemens Limited Vs ADIT (ITAT Mumbai) MSMED Act Interest Reversal Not Taxable If Never Claimed as Deduction—Matter Remanded for Verification The Mumbai ITAT (G Bench) allowed the appeal of Siemens Limited for AY 2020-21 for statistical purposes, directing verification of an adjustment made by CPC on account of interest under section 23 of the MSMED Act. The Tribunal held that: The CPC had made an upward adjustment of ₹6.62 crore while processing the return u/s 143(1), treating the reversal of MSMED interest provision as taxable. The assessee contended that although a provision for MSMED i...