M. VISVESVARAYA INDUSTRIAL RESEARCH AND DEVELOPMENT CENTRE,MUMBAI vs. COMMISSIONER OF INCOME-TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE

ITA 4343/MUM/2026Status: DisposedITAT Mumbai09 September 2026AY 2020-2110 pages
AI SummaryPartly Allowed

What were the facts?

The assessee claimed a deduction for advance rent, arguing it was already taxed in earlier assessment years as capital gains. The Assessing Officer disallowed this claim, stating insufficient evidence. The CIT(A) upheld the disallowance.

What did the Tribunal hold?

The Tribunal found merit in the assessee's submissions, noting that the Bombay High Court had previously confirmed the entire advance rent was taxable as capital gains in earlier years. The Tribunal directed the Assessing Officer to delete the disallowance.

What were the issues?

Whether the assessee is entitled to a deduction for advance rent already taxed as capital gains in prior years, and if the CIT(A) erred in disallowing the claim without proper inquiry.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 80G,Section 205,Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI PRABHASH SHANKAR

Pronounced: 09/09/2026

PER SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER:

This appeal is filed by the assessee against the order of the learned Commissioner of Income-tax (Appeals), NFAC, Delhi, dated 26.02.2026, for the assessment year 2021-22. ITA 4343/MUM/2026 M. VISVESVARAYA INDUSTRIAL RESEARCH AND DEVELOPMENT CENTRE

2.

The assessee has raised the following grounds of appeal:

1.

“Disallowance of Advance Rent Deduction of 1

The order continues below.

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