GST Refund is non taxable

This ruling addresses a nuanced but recurring issue in CPC-driven adjustments taxability of indirect tax refunds under the exclusive accounting method. 

The Tribunal clarified that where taxes are neither claimed as expenditure nor routed through the P&L, corresponding refunds cannot be treated as income. It also rejected mechanical additions based on tax audit disclosures that resulted in double taxation. 

The decision reinforces accounting-method neutrality and limits the scope of Section 143(1) adjustments to clear inconsistencies rather than interpretative disputes.