India's Income Tax Appellate Tribunal overturns technical disallowances in two tax cases

The Bangalore ITAT set aside the orders of the Commissioner of Income Tax (Appeals) and the Commissioner of Police (CPC) that had disallowed a charitable trust’s claim of ₹29.45 lakh capital expenditure as application of income. The Tribunal held that a mere reporting mismatch in the return cannot reject a claim that is fully supported by documentary evidence.

The Delhi ITAT bench ruled that reimbursements of travel and conveyance paid to foreign associated enterprises are not fees for technical services under Section 9(1)(vii) of the Income‑Tax Act. Consequently, the addition of ₹9.17 million made under Section 40(a)(ia) for non‑deduction of tax at source was deleted, consistent with the Tribunal’s earlier 2013‑14 decision.