https://www.taxtmi.com/caselaws?id=766915 A processing adjustment under section 143(1) cannot reduce carry-forward loss on the basis of a mistaken mismatch between the return and the tax audit report. The assessee had disclosed the receipt as a VAT/GST refund, while the audit report separately stated that no amount fell within section 28. The mismatch was found to arise from a factual misunderstanding in processing rather than a valid statutory basis for disallowance. The adjustment was therefore unsustainable, the reduction in carry-forward loss was deleted, and the assessee's claim was restored. en-us Tue, 04 Mar 2025 00:00:00 +0530 Thu, 06 Mar 2025 07:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766915 A processing adjustment under section 143(1) cannot reduce carry-forward loss on the basis of a mistaken mismatch between the return and the tax audit report. The assessee had disclosed the receipt as a VAT/GST refund, while the audit report separately stated that no amount fell within section 28. The mismatch was found to arise from a factual misunderstanding in processing rather than a valid statutory basis for disallowance. The adjustment was therefore unsustainable, the reduction in carry-forward loss was deleted, and the assessee's claim was restored. Case-Laws Income Tax Tue, 04 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766915