SAMUNDER SAREE CENTRE,DELHI vs. DCIT CIRCLE 46(1), DELHI

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ITA 5434/DEL/2026Status: DisposedITAT Delhi23 July 2026AY 2018-192 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that Section 71(2A) of the Income Tax Act, as interpreted by the CIT(A), only restricts set off of business loss against salary income, not income from other sources. Therefore, the disallowance was incorrect.

What were the facts?

The assessee claimed to set off business losses against income from other sources. The Assessing Officer disallowed this set off, and the CIT(A)/NFAC upheld the disallowance.

What were the issues?

Whether business losses can be set off against income from other sources, considering the provisions of Section 71(2A) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 71(2A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Satbeer Singh Godara

For Appellant: Shri Mukesh Jain, CA & Shri Samyak Jain, Adv
Hearing: 08.07.2026Pronounced: 08.07.2026

This assessee’s appeal for Assessment Year 2018-19, arises against the CIT(A)/NFAC, Delhi’s DIN & Order No. ITBA/NFAC/S/250- 2025-26/1081122876(1) dated 24.09.2025, in proceedings u/s 147/144B of the Income Tax Act, 1961 (in short “the Act”). 2. Heard both the parties. Case file perused. 3. Coming to the assessee’s first and foremost grievance, a perusal of the CIT(A)’s detailed discussion at page no. 14 in para 6.4.2 indicates that its set off of loss claim arising under the “business” head amounting to Rs. 22.99 lacs against income from “other sources” of Rs. 20.92 lacs has been disallowed after quoting section 71(2A) of the Act. That being the case, the Revenue could hardly dispute that the aforesaid statutory provision nowhere stipulates that such a set off of business income as not allowable against income from “other sources” but that involving the salary income only.

4.

This Tribunal therefore find merits in the sole substantive ground of the assessee and directs the Assessing Officer to finalise his consequential computation in very terms. 5. In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 08/07/2026.

Sd/- (Satbeer Singh Godara) Judicial Member

Dated: 23/07/2026

SR BHATNAGAR

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