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Informative

ITAT limits Disallowance in Circular Trading Case to 0.30%

Update / Judgement Date

27 Feb 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Appeal Against OrderIncome Tax

The ITAT has limited the disallowance in a circular trading case to 0.30%. This decision clarifies the tax treatment of circular trading transactions. It ensures that disallowances are proportionate. This ruling underscores the need for clear guidelines on disallowances. It emphasizes the importance of fair assessments. The ITAT's order protects the rights of taxpayers.