New Delhi, Aug. 10 -- A company that lost a Rs.79.25 lakh gratuity deduction because of an error in its income tax return has won relief from the Income Tax Appellate Tribunal (ITAT), Chennai. The tribunal held that a genuine tax deduction cannot be denied merely because it was reported under the wrong schedule in the ITR, particularly when the underlying facts establish that the claim is valid.

According to a report by ET Wealth Online, the case relates to assessment year 2020-21 and was decided by the Chennai ITAT on 24 June 2026.

The corporate taxpayer filed its ITR on 18 December 2020, declaring total income of about Rs.38.1 lakh. When the return was processed by the Central Processing Centre (CPC), Bengaluru, the income was recalcu...