SDSpan Divergent524727Tax or GST

Income Tax Appellate Authority Quashes Assessment Order; ~₹64.15 lakh Disallowances Set Aside

Span Divergent received an Income Tax appellate order dated November 04, 2026 for Assessment Year 2016-17.

By ScoutQuest · Thu 5 Nov 2026, 7:50 PM IST · 1 min read

Disallowances Quashed

~₹64.15 lakh

Consequential Tax Demand Impact

~₹28.95 lakh

Appeal Outcome

Partly Allowed

What the order says

• Span Divergent Ltd has received an Appellate Order dated November 04, 2026 passed by the Commissioner of Income Tax (Appeals)-12, Ahmedabad, in respect of the company's appeal for Assessment Year 2016-17.
• The appeal was shared against an assessment order dated February 22, 2024, passed by the Assistant Commissioner of Income Tax, Central Circle 2(3), Ahmedabad, under Section 153C read with Section 143(3) of the Income-tax Act, 1961.
• The appellate authority held that the assessment proceedings were unsustainable in the absence of identified incriminating material supporting the additions made by the Assessing Officer, and accordingly quashed the assessment order dated February 22, 2024.

The amounts involved

• Disallowances aggregating ~₹64.15 lakh have been quashed.
• Of this, ~₹62.67 lakh relates to CENVAT Credit written off and ₹1,47,939/- relates to Employees' Provident Fund contribution.
• Because the assessment order is quashed, these additions/disallowances aggregating ~₹64.15 lakh cannot be sustained.
• The company states the consequential impact on the tax demand of ~₹28.95 lakh will be given effect to as per applicable tax procedures.

How to read this

• The order is described by the company as providing relief, as the assessment order behind the additions has been set aside.
• The company states there is no operational impact from this development.
• The appeal has been partly allowed.

Points to keep in mind

• The monetary figures above are the amounts of the additions/disallowances involved and the consequential impact on the tax demand as stated by the company; the actual accounting and cash effect will follow the applicable tax procedures mentioned.
• This is an update on an ongoing tax assessment matter, not a change in the company's business operations.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

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