Informative

Disallowance Invalid When Amount Not Charged to P&L; ITAT Deletes Rs 25.55 Lakh WIP Addition Citing Presumption Basis

Update / Judgement Date

16 Oct 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Civil Law

The ITAT deleted Rs 25.55 lakh addition relating to work-in-progress, stating that disallowance is invalid if amounts are not charged to Profit & Loss account. The ruling clarifies the principle of presumption-based adjustments in taxation.

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Disallowance Invalid When Amount Not Charged to P&L; ITAT Deletes Rs 25.55 Lakh WIP Addition Citing Presumption Basis

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