Vardhaman Vasundhara Family Trust Vs ITO (ITAT Pune)
Income Tax Appellate Tribunal (ITAT), Pune bench, has set aside an order by the Additional/Joint Commissioner of Income Tax (Appeals)-1, Siliguri, in the case of Vardhaman Vasundhara Family Trust versus the Income Tax Officer. The Tribunal, in its order pronounced on June 27, 2025, directed the appellate authority to re-adjudicate the matter on merits, citing a failure to address the core issue of set-off of brought forward capital loss and a violation of the statutory mandate for passing a speaking order. The decision underscores the critical importance of appellate authorities delivering comprehensive rulings that address all grounds raised by an assessee.
Background of the Dispute
The case pertains to Assessment Year 2022-23. Vardhaman Vasundhara Family Trust, a private discretionary trust, had e-filed its original return of income on July 19, 2022, declaring a total income of Rs. 19,27,73,730/-. A revised return was subsequently filed on December 26, 2022, without any alteration to the declared income.
Upon processing of the return under Section 143(1) of the Income Tax Act, 1961 (the “Act”) by the Centralized Processing Centre (CPC), an adjustment of Rs. 52,20,899/- was made. This adjustment specifically pertained to the disallowance of the set-off of brought forward capital loss from an earlier assessment year, which the assessee had claimed against long-term capital gains in the current year.
