ITAT Chennai Judgments — November 2025

The Tribunal held that the assessee's claim for exclusion of the reversed liquidated damages was admissible, even if not initially made in the return of income. The Tribunal directed the AO to verify the calculations and exclude the disallowed portion of the provision from assessable income for AY 2018-19.

The Tribunal noted that the assessee's status as director was in dispute, with evidence suggesting continued directorship until a later date than initially assessed. The matter was restored to the AO for fresh examination.

The Tribunal held that the notice issued under Section 148 by the JAO was not in accordance with the e-assessment scheme and was therefore invalid. This decision followed the jurisdictional High Court's ruling in similar cases.