AVENDUS ENHANCED RETURN FUND,MUMBAI vs. ACIT, CIRCLE 23(1), MUMBAI

ITA 9151/MUM/2025Status: DisposedITAT Mumbai06 August 2026AY 2020-219 pages
AI SummaryRemanded

What were the facts?

The assessee, an AIF, inadvertently made a disallowance under Section 14A of Rs. 14,89,18,556 in its original and revised returns, while its Form 3CD filed earlier correctly reported a disallowance of Rs. 10,00,000. The assessee sought to correct this mistake during assessment proceedings.

What did the Tribunal hold?

The Tribunal held that while the Assessing Officer's power to entertain claims outside a revised return is limited (as per Goetze (India) Ltd.), appellate authorities can entertain legitimate claims not made through a revised return. The matter was restored to the AO for verification of the assessee's claim.

What were the issues?

Whether a disallowance under Section 14A can be corrected by the assessee during assessment proceedings when an error was made in the original and revised returns, and whether appellate authorities have the power to entertain such corrected claims.

Which sections of the Income-tax Act were involved?

Section 14A,Section 115BBDA,Section 10(34),Section 139(1),Section 139(5),Section 143(3),Section 144B,Section 250,Section 254

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: SHRI ANIKESH BANERJEE & SHRI BIJAYANANDA PRUSETH

PER SHRI ANIKESH BANERJEE, JUDICIAL MEMBER:

The instant appeal of the assessee against the order of the NFAC, Delhi [for brevity “Ld. CIT(A)”], order passed under Section 250 of the Income Tax Act, 1961 (for brevity ‘the Act’) for Assessment Year 2020-21, date of order 03.10.2025. The impugned order emanated from the order of the Assessment

ITA 9151/MUM/2025 AVENDUS ENHANCED RETURN FUND

Uni

The order continues below.

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