#Accounting Method

ITAT Mumbai rules that disallowance under Section 40(a)(ia) of the Income Tax Act is limited to expenditures claimed in the profit and loss account and does not extend to amounts capitalized as work-in-progress (WIP). This holding clarifies TDS compliance obligations for taxpayers using different accounting methods, ensuring capitalized expenditures remain unaffected by the disallowance provision.

ITAT Bangalore rules that GST refunds are not taxable if the assessee follows the exclusive accounting method, bypassing the profit & loss account. The decision reinforces that consistent accounting practices prevail over revenue adjustments, impacting tax assessments for businesses claiming refunds.