SANJEEV CHANDRA,DELHI vs. ITO,WARD-52(1), NEW DELHI

ITA 5953/DEL/2026Status: DisposedITAT Delhi16 September 2026AY 2022-235 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Income Tax Act does not prescribe a mandatory sequence for setting off business losses against other heads of income. The assessee is entitled to choose the order of set-off, and the CPC exceeded its jurisdiction by altering this sequence.

What were the facts?

The assessee set off business loss against long-term capital gains. The CPC Bengaluru altered the set-off sequence, adjusting the business loss against income from house property first, which led to disallowance of Chapter VI-A deductions. The CIT(A) upheld the CPC's action.

What were the issues?

Whether the CPC can alter the assessee's chosen sequence for setting off business loss against other heads of income during processing under Section 143(1)? Whether the disallowance of Chapter VI-A deductions is justified when the CPC alters the set-off sequence?

Which sections of the Income-tax Act were involved?

Section 71,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, E: NEW DELHI

Before: SHRI VIMAL KUMAR & SMT. RENU JAUHRI

For Appellant: Shri Sumit Goel, CA
For Respondent: Shri Tarun Sharda, Sr. DR
Hearing: 31.08.2026Pronounced: 16.09.2026

Per Renu Jauhri, Accountant Member:

This appeal by the assessee is directed against the order dated 09.03.2026 of the Commissioner of Income Tax, Appeal, ADDL/JCIT, (A)-3, Ahmedabad, [hereinafter referred to as the ‘Ld. CIT(A)] arising out of the Order dated 31.01.2024 passed under section 154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the Assessing Officer, CPC, Bengaluru (hereinafter referred to as the ‘AO’) pertaining to Assessment Year (A.Y.) 2022-23. ITA No.- 5953/Del/2026 Sanjeev Chandra

2.

The Assessee has raised the following grounds of appeal:

“ 1. That the orders passed under sections 143(1) and 154 are arbitrary, unjustified and contrary to the facts and provisions of law.

2.

That

The order continues below.

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