https://www.taxtmi.com/caselaws?id=753112 ITAT Pune ruled in favor of the assessee regarding disallowance of gratuity payment under section 143(1)(a)(iv) read with section 43B and 36(1)(v). The tribunal held that ADIT(CPC) lacked jurisdiction to disallow the expenditure since it was not indicated in the audit report for disallowance. Section 143(1)(a)(iv) permits AO to consider only expenditures specifically indicated in audit reports but not disallowed in income computation. Since gratuity expenditure on payment basis was not flagged in the audit report, the disallowance fell outside the provision's scope. The assessee's appeal was allowed. en-us Tue, 07 May 2024 00:00:00 +0530 Sat, 25 May 2024 08:08:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753112 ITAT Pune ruled in favor of the assessee regarding disallowance of gratuity payment under section 143(1)(a)(iv) read with section 43B and 36(1)(v). The tribunal held that ADIT(CPC) lacked jurisdiction to disallow the expenditure since it was not indicated in the audit report for disallowance. Section 143(1)(a)(iv) permits AO to consider only expenditures specifically indicated in audit reports but not disallowed in income computation. Since gratuity expenditure on payment basis was not flagged in the audit report, the disallowance fell outside the provision's scope. The assessee's appeal was allowed. Case-Laws Income Tax Tue, 07 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753112