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Carry Forward Loss Cannot Be Denied After Treating Return as Valid: ITAT Delhi

Case Law Details

TaxGuru Citation
2026 taxguru.in 2291
Case Name
Avalon Infrastructures Pvt. Ltd. Vs ACIT/DCIT (ITAT Delhi)
Date of Judgement/Order
Only available for paid members
Related Assessment Year
2019-20
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Avalon Infrastructures Pvt. Ltd. Vs ACIT/DCIT (ITAT Delhi)

The Income Tax Appellate Tribunal (ITAT), Delhi Bench, decided the assessee’s appeal for assessment year 2019-20 against the order of the CIT(A)/NFAC arising from proceedings under Section 143(1) of the Income-tax Act, 1961. The primary issue concerned disallowance of carry forward loss on the ground that the return filed on 01.11.2019 at 00:00:37 was belated and not a valid return under Section 139(1).

The Tribunal noted that the departmental authorities themselves had treated the return as validly filed under Section 139(1). In such circumstances, the stand of disallowing carry forward losses while simultaneously accepting the return as valid was found to be contradictory and unsustainable in law. The Assessing Officer was directed to verify the relevant details regarding the carry forward losses.

The assessee did not press the ground relating to disallowance of Rs.6,56,193 under Section 36(1)(va) on account of delayed deposit of ESI/PF, which was accordingly rejected. The appeal was partly allowed.loss

FULL TEXT OF THE ORDER OF ITAT DELHI

This assessee’s appeal for assessment year 2019-20, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN & Order No:ITBA/NFAC/S/250/2022-23/1049074576(1), dated 24.01.2023 involving proceedings under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,368

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