Relief for IndiGo: ITAT Upholds Deletion of Rs. 11.05 Crore Disallowance u/s 37 as AO’s Final...

In a relief for Indigo, the ITAT (Income Tax Appellate Tribunal) upheld the deletion of a "₹11.05 crore disallowance under Section 37," as the AO's (Assessing Officer) "final assessment confirmed nil income." Section 37 allows deduction for business expenditures. The tribunal ruled that since the Assessing Officer, in the final assessment, determined that the company had 'nil' taxable income after considering other deductions, the disallowance of ₹11.05 crore under Section 37 became inconsequential and academic. This decision prevents an arbitrary disallowance when it has no practical impact on the final tax liability.