DELTA MANUFACTURING LIMITED,NASHIK vs. CIRCLE 6(1)(1), MUMBAI, MUMBAI

ITA 3122/MUM/2026Status: DisposedITAT Mumbai15 June 2026AY 2022-20239 pages
AI SummaryAllowed

What were the facts?

The assessee claimed set off of unabsorbed depreciation against dividend income received from a foreign subsidiary. The PCIT initiated revision proceedings under Section 263, holding the assessment order erroneous and prejudicial to revenue. The assessee argued that Section 115BBDA was not applicable as the dividend was from a foreign company and received after the specified date.

What did the Tribunal hold?

The Tribunal held that Section 115BBDA is not applicable as the dividend was from a foreign company and received in a later financial year. Therefore, the PCIT's order under Section 263 was not justified.

What were the issues?

Whether the PCIT was justified in revising the assessment order under Section 263 when the dividend income was from a foreign subsidiary and Section 115BBDA was not applicable. Whether the set-off of unabsorbed depreciation against such income was permissible.

Which sections of the Income-tax Act were involved?

Section 263,Section 115BBDA,Section 32(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH: MUMBAI

Hearing: 11.06.2026Pronounced: 15.06.2026

PER VIKRAM SINGH YADAV, A.M : This is an appeal filed by the Assessee against the order of the Learned Principal Commissioner of Income Tax, Mumbai - 6 [‘Ld. PCIT’], passed u/s 263 dated 05.02.2026, pertaining to Assessment Year (AY) 2022-23. 2. Briefly, the facts of the case are that the assessee company filed its return of income on 23.11.2022, declaring total income at Rs. Nil after claiming set off of unabsorbed depreciation of Rs. 18,82,71,334/-.

Subsequently, the case of the assessee was selected for scrutiny and assessment u/s. 143(3) r.w.s. 144B of the Act was completed on 23.03.2024, accepting the returned income. Though, there was no adjustment or variation between the returned income and th

The order continues below.

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