KAILAS KALYAN CREATORS PRIVATE LIMITED,AHMEDABAD vs. ITO WARD 2(1)(1), AHMEDABAD, AHMEDABAD

ITA 2342/AHD/2025Status: DisposedITAT Ahmedabad09 April 2026AY 2023-2410 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal allowed the appeal, holding that the cost of improvement was deductible as the CIT-DR confirmed the veracity of payments to encroachers after examining the evidence. The Tribunal also clarified the business loss issue, finding it to be a clerical error.

What were the facts?

The assessee claimed a cost of improvement for vacating encroachers on land, which was disallowed by the AO and CIT(A) due to incomplete details. The assessee also claimed a business loss that was disputed regarding its quantum.

What were the issues?

Whether the cost of improvement for vacating encroachers is allowable as a deduction, and whether the business loss claim was correctly handled.

Which sections of the Income-tax Act were involved?

Section 48,Section 55

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: Shri Sanjay Garg & Annapurna Gupta

For Appellant: Shri Chetan Agarwal, A.R
Hearing: 24/02/2026Pronounced: 09/04/2026

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 28/11/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2023-24. 2. The assessee, in this appeal, has taken the fol

The order continues below.

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