ACIT CIRCLE 15(1)(2), MUMBAI, MUMBAI vs. BALMER LAWRIE VAN LEER LIMITED, MUMBAI

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ITA 9497/MUM/2025Status: DisposedITAT Mumbai24 June 2026AY 2022-2311 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the ad-hoc disallowance of 'other expenses' was not justified as the assessee's books were audited and accepted, and similar expenses were allowed in prior years. However, the issue of the government grant was not examined by the AO, necessitating a remand.

What were the facts?

The Revenue appealed against the deletion of an addition of Rs. 6,60,99,933/- made on account of 'other expenses' and an addition of Rs. 2,29,300/- related to a government grant. The assessee had failed to provide complete documentary evidence for these expenses and the nature of the grant.

What were the issues?

Whether an ad-hoc disallowance of expenses is justified when books are audited and accepted, and whether a government grant's nature requires further examination by the AO.

Which sections of the Income-tax Act were involved?

Section 37,Section 143(3),Section 144B,Section 44AB

AI-generated summary — verify with the full judgment below

Before: SHRI AMIT SHUKLA & SHRI PRABHASH SHANKAR

For Appellant: Shri M. Subramaniam, AR
For Respondent: Shri Swapnil Choudhari (Sr. DR)
Hearing: 11.05.2026Pronounced: 24.06.2026

आदेश की प्रतितलतप अग्रेतिि/Copy of the Order forwarded to : अपीलार्थी / The Appellant 1. 2. प्रत्यर्थी / The Respondent.

P a g e | 11 ITA No. 9497/Mum/2025 A.Y. 2022-23 Balmer Lawrie Van Leer Limited 3. आयकर आय क्त / CIT 4. दिभागीय प्रदिदनदि, आयकर अपीलीय अदिकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यादपि प्रदि //True Copy// आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अतधकरण/ ITAT, Bench, Mumbai.

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