A2Z Waste Management (Ranchi) Limited Vs DCIT (ITAT Delhi)
The Income Tax Appellate Tribunal, Delhi Bench, considered an appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals) dated 24 January 2024 arising from reassessment proceedings under Sections 144 and 147 of the Income Tax Act, 1961 for Assessment Year 2013-14.
The assessee had originally filed its return of income on 29 September 2013 declaring nil income. The assessment was completed under Section 143(3) on 30 December 2015 accepting the returned income at nil. Subsequently, the case was reopened under Section 148 on the basis of a revenue audit objection. The Assessing Officer alleged that the assessee had wrongly claimed set-off of brought forward business losses amounting to Rs.1,14,74,526 against current year interest income of Rs.1,14,63,496, which according to the Assessing Officer was taxable under the head “Income from Other Sources” and therefore not eligible for set-off under Section 72 of the Act.
A reassessment order was thereafter passed disallowing the claim of set-off and assessing the income at Rs.1,14,74,526. On appeal, the Commissioner (Appeals) partly allowed the assessee’s claim by treating interest earned on fixed deposits kept as margin money for availing loans as business income and deleting addition to the extent of Rs.80,20,400. However, the remaining disallowance was confirmed.
