Gratuity tax deduction of ₹79.25 lakh denied over wrong ITR schedule, ITAT Chennai rules in taxpayer’s favour
The Income Tax Appellate Tribunal (ITAT) in Chennai ruled in favor of a company, allowing a ₹79.25 lakh gratuity deduction that was initially denied due to a reporting error in its income tax return. The tribunal stated that a genuine claim under Section 43B cannot be rejected solely based on an inadvertent mistake in reporting. The ITAT directed the Assessing Officer to remove the disallowance, emphasizing the validity of the claim despite the initial misclassification.