Case Law Details
WLD Investments Pvt Ltd Vs DCIT (ITAT Delhi)
AO assessed loss on certain amount despite the fact that no such loss has been claimed – ITAT remit the matter back to the AO for determining the issue afresh on the basis of relevant facts that may be placed by the assessee before the AO.
In a recent decision that has caught the attention of the financial and legal communities, the Income Tax Appellate Tribunal (ITAT) Delhi has set aside a previous order against WLD Investments Pvt Ltd by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, related to the assessment year 2018-19. This case, WLD Investments Pvt Ltd vs. Deputy Commissioner of Income Tax (DCIT), centers around the assessment of losses and the disallowance of interest expenditures, offering significant insights into the interpretation and application of tax laws.
Analysis
The heart of the contention was the Assessing Officer’s (AO) decision to disallow a substantial sum of Rs. 4,35,92,672 under Section 40(a)(ia) of the Income Tax Act, 1961, despite the appellant’s assertion that these expenses were never claimed due to the belated filing of their return. This was compounded by the AO’s assessment of losses that the company contends were not claimed in their return, which was filed showing ‘Nil’ income.
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