TaxTMI 
TaxTMI 
2026 (10) TMI 349
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....case and in law, the Learned CIT(A) has grossly erred in upholding and/or failing to adjudicate properly the action of the Learned Assessing Officer, Deputy Director of Income Tax, CPC, Bengaluru, in treating the GST Input Refund amounting to Rs. 3,98,152/- as income of the Appellant, The said adjustment has been made mechanically and without proper application of mind, ignoring the facts on record and settled legal position. The addition so made is unjustified, arbitrary, and liable to be deleted, and consequently, the demand raised thereon also deserves to be deleted. 2. That on the facts and in the circumstances of the case and in law, the Learned CIT(A) has grossly erred in upholding and/or failing to adjudicate the validity of....
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....,152/- (as reported in clause 16(b) of Form 3CD) as taxable income and recomputed total income at Rs. 8,92,510/-. The assessee then filed rectification application and vide rectification order dated 19.11.2024 u/s 154 of the Act, Assessing Officer confirmed the recomputation and demand of Rs. 88,750/- 3. Aggrieved with the above order, assessee preferred an appeal before the ld. Addl/JCIT(A)-2, Vadodara and separate grounds were raised as well as detailed submissions were submitted which are reproduced at pages 4 to 9 of the appellate order. After considering the detailed submissions of the assessee, ld. CIT (A) dismissed the appeal. 4. Aggrieved with the above order, assessee is in appeal before us. 5. At the time of hearing, ld. ....
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....eal income can be subjected to tax. He submitted that refund of GST/IGST does not constitute taxable income is squarely supported by judicial precedents, wherein identical addition made by CPC solely on the basis of disclosure in Clause 16(b) of Form 3CD have been disapproved. In this regard, he relied on the following decisions :- * ITAT, Delhi Bench in Coforge Limited vs. DCIT in ITA No.4333/Del/2024 order dated 30.09.2025 * ITAT, Mumbai Bench in M/s Tanyo Exports Pvt. Ltd. v. DCIT (ITA No. 4959/Mum/2025. AY 2024-25, order dated 22.12.2025) * ITAT, Delhi Bench in the case of Ecoenergy Insights Limited vs. ACIT - ITA No.5413/Del/2024 order dated 13.08.2025. 8. On the other hand, ld. DR of the Revenue relied on....
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....refund. The GST refund received is only the refund of IGST which is first paid and then claimed as refund. Hence, the GST refund received is not an income and no addition should be made." 11. Further, we observed that the same principle has been reiterated by the coordinate Bench in the case of Ecoenergy Insights Limited vs. ACIT (supra) wherein the tribunal deleted the addition made on account of IGST refund reported in Clause 16(d) holding that mere disclosure in the tax audit report does not render the receipt taxable. The coordinate Bench held as under :- "The amount of IGST paid is neither claimed in the Profit & Loss Account nor was claimed as expenditure in any preceding year for which the refund could be held as the inco....