SOLUTIONS INFINI TECHNOLOGIES (INDIA) PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 6(1)(1), BANGALORE

ITA 1381/BANG/2025Status: DisposedITAT Bangalore06 March 2026AY 2023-24Bench: SHRI WASEEM AHMED (Accountant Member), SHRI SOUNDARARAJAN K (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the addition made under section 143(1) based solely on an inadvertent error in the original tax audit report was unsustainable. The assessee's subsequent clarifications and revised reports, supported by financial statements, demonstrated no actual provision for gratuity was created. The Tribunal also directed the AO to verify and grant short-claimed TDS credit.

What were the facts?

The assessee inadvertently reported a provision for gratuity in its tax audit report, leading to an addition by the CPC during section 143(1) processing. The assessee argued this was an error and provided revised reports and financial statements to support its claim. The CIT(A) initially upheld the addition, but the Tribunal reviewed the case.

What were the issues?

Whether an addition made under section 143(1) due to an inadvertent error in the tax audit report is sustainable, and whether short-granted TDS credit should be allowed after verification.

Which sections of the Income-tax Act were involved?

Section 43B,Section 143(1),Section 40A(7),Section 244A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, BANGALORE

Before: SHRI WASEEM AHMED & SHRI SOUNDARARAJAN K

For Appellant: Shri Ketan Ved, CA
For Respondent: Shri Subramanian, JCIT (DR)
Hearing: 04.03.2026Pronounced: 06.03.2026

PER WASEEM AHMED, ACCOUNTANT MEMBER:

The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income-tax (Appeals) passed under section 250 of the Act dated 29 April 2025. 2. The assessee in the grounds of appeal has raised three grounds which, for the sake of brevity and convenience, we are not inclined to reproduce here.

3.

Ground No. 1 relates to the addition made on account of provision for gratuity, which was erroneously reported in the tax audit report under section 43B of the Act, whereas factua

The order continues below.

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