MCKENZIE PHILIP (INDIA) LLP,BHOPAL vs. ASSISTANT COMMISSIONER OF INCOME TAX DCIT 1(1), BHOPAL

ITA 115/IND/2026Status: DisposedITAT Indore08 May 2026AY 2016-1716 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that expenses incurred by the erstwhile private limited company, a separate legal entity, cannot be apportioned to claim a loss in the LLP. The Tribunal upheld the disallowance of Rs. 45,01,274/- as it pertained to a prior period of conversion.

What were the facts?

The assessee, a Limited Liability Partnership (LLP), was formed by conversion from a private limited company. The LLP claimed expenses of Rs. 45,01,274/- incurred prior to its formation, which were disallowed by the Assessing Officer and upheld by the CIT(A). The assessee argued that as a successor entity, all liabilities vested with it.

What were the issues?

Whether expenses incurred by a predecessor entity before conversion to an LLP can be claimed by the LLP. Whether statutory taxes paid prior to conversion are allowable as a deduction for the LLP.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250,Section 253

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

For Appellant: Shri S.S. Deshpande, CA
For Respondent: Shri Ashish Porwal, Sr.DR
Hearing: 27.04.2026Pronounced: 08.05.2026

Per Paresh M Joshi, J.M.:

This is an Appeal filed by the Assessee under section 253 of the income tax Act 1961,[ herein after referred to as the Act

for the sake of brevity] before this tribunal as & by way of a second Appeal. The Assessee is aggrieved by the order

bearingNumber:-ITBA/APL/S/250/2025-26/1083562358 (1)

dated 11.12.2025 passed by the Ld. CIT(A) u/s 250 of the Act, which is herein after referred to as the “Impugned

order”. The Relevant Assessment year is 2016-17 and the Mckenzie Philip (India) LLP ITA No. 115/Ind/2026 - A.Y.2016-17

corresponding previous year period is from 01.04.2015 to 31.03.2016. 2. Factual Matrix

2.

1 That as and by way of an Assessment order m

The order continues below.

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