Classification Errors Don’t Disqualify Deductions in ITR

In the case of National Contracting Company (India) Private Limited vs. Deputy Commissioner of Income Tax (DCIT), the Chennai Income Tax Appellate Tribunal (ITAT) delivered a ruling. On June 24, 2024, the decision, pronounced, addresses the problem of whether a wrong classification in an Income Tax Return (ITR) can result in the refusal of a legitimate deduction. Case Overview: National Contracting Company (India) Private Limited, the appellant, filed its income return for the AY 2020-21 on December 18, 2020, declaring a total income of Rs 38,10,910. The Centralized Processing Center…