Fexprime Finance Pvt. Limited Vs ADIT/CPC (ITAT Delhi)
The appeal was filed by Fexprime Finance Pvt. Ltd., a registered NBFC engaged in financing two-wheeler purchases, against the order dated 10.01.2025 of the CIT(A)-1, Mumbai, arising from an intimation under Section 143(1) for Assessment Year 2021–22.
The assessee had filed its return on 14.03.2022, declaring nil income and claiming a carry forward loss of ₹18,19,72,248. Subsequently, it received a show-cause notice dated 14.04.2022 from the CPC proposing an adjustment of ₹14,45,64,504 under Section 143(1)(a)(iv). The assessee replied that the proposed adjustment was unjustified since the amount represented liabilities written off in earlier years, already offered to tax under Section 41(1) and credited to the Profit & Loss Account as “Other Income” (Note 22 of Financial Statements). Any further addition would therefore result in double taxation.
Despite the reply, the CPC made the addition and reduced the current year’s loss by ₹14.45 crore while processing the return under Section 143(1). Consequently, the carried forward loss was reduced to nil. The assessee’s appeal before the CIT(A) was summarily dismissed.
Before the Tribunal, the assessee raised several grounds challenging both the CPC’s and CIT(A)’s orders as being legally untenable, contending that the authorities had erred in double taxing the same income. It argued that:
