MR. PRAKASH CHAND AGRAWAL,GAUTAM BUDH NAGAR vs. ITO WARD-5(2)(1), NOIDA

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ITA 1300/DEL/2025Status: HeardITAT Delhi19 May 2026AY 2019-205 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 held that the CPC's inconsistent approach in disallowing and then re-allowing the brought forward loss was erroneous. The Tribunal deleted the disallowance made by the CPC and confirmed by the CIT(A).

What were the facts?

The assessee unintentionally failed to file Schedule IF detailing his partnership firm. The CPC disallowed brought forward long-term capital loss, but later allowed it via rectification. However, upon processing a revised return, the CPC again disallowed the loss. The CIT(A) dismissed the assessee's appeal.

What were the issues?

Whether the disallowance of brought forward long-term capital loss by the CPC, despite an earlier rectification allowing it, was justified. Whether the levy of fee under Section 234F was correct when the return was filed within the due date.

Which sections of the Income-tax Act were involved?

Section 154,Section 143(1),Section 234F

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: YOGESH KUMAR U.S. & SHRI MANISH AGARWAL

For Appellant: Ms. Ananya Kapoor, Adv & sh. Sumit Lal
Hearing: 23/03/2026Pronounced: 19/05/2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘C’ NEW DELHI) BEFORE YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 1300/DEL/2025 (A.Y. 2019-20) ITA No. 1299/DEL/2025 (A.Y. 2018-19) Mr. Prakash Chand Agrawal Vs Income Tax Officer A-84, Sector-50, Noida, Gautam Ward 5(2)(1), Nodia, Buddha Nagar, Uttar Pradesh, Uttar Pradesh 201301PAN: AAAPA0440N Appellant Respondent Assessee by Ms. Ananya Kapoor, Adv & sh. Sumit Lal Chandani, Adv Revenue by Sh. Om Prakash, Sr. DR Date of Hearing 23/03/2026 Date of Pronouncement 19/05/2026 ORDER PER YOGESH KUMAR, U.S. JM: The captioned appeals are filed by the Assessee against the orders

of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal

Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 18/01/2025 and

for the Assessment Year 2018-19 and 2019-20 respectively.

ITA No. 1300/DEL/2025 (A.Y. 2019-20)

2.

The grievance of the Assessee is that the CPC on allowing the

rectification application accepted the correctness of the claim and

allowed and the said set off of brought forward loss vide Rectification

order dated 10/07/2020, however, while processing the Revised Return

filed by the Assessee, CPC again disallowed the same.

2 ITA No. 1299 & 1300Del/2025 Mr. Prakash Chand Agrawal

3.

Brief facts of the case are that, in the present case, the Assessee

filed return of income on 25/09/2019, declaring total income of Rs.

15,71,910/-, which was within the prescribed due date applicable to

partners of firm whose accounts are required to be audited. While filing

the return of income, due to Assessee’s unintentional mistake the

Schedule IF containing details of partnership firm in which the Assessee

was partner in remained unfiled. The Return of Income was processed

by CPC and an intimation u/s 143(1) was came to be passed on

02/06/2020, wherein brought forward Long Term capital loss of Rs.

6,76,307/- claimed by the Assessee was disallowed. Further fee of Rs.

5000/-u/s 234F was levied by treating the return as belated.

4.

Thereafter, the Assessee filed rectification application u/s 154 of

the Act and vide order dated 10/07/2020 the CPC allowed the set of

brought forward Long Term Capital Loss of Rs. 6,76,307/-. However, the

fees u/s 234F of Rs. 5000/- was not deleted. The Assessee filed revised

return of income on 16/07/2020, wherein declared the details of

partnership firm, however, while processing the revised return CPC vide

intimation dated 27/08/2020, once again disallowed the brought

forward loss of Rs. 6,76,307/-, though the fees u/s 234F was deleted.

Thereafter, the Assessee filed one more application for rectification which

has been rejected by the A.O. on 17/11/2023 holding that brought

3 ITA No. 1299 & 1300Del/2025 Mr. Prakash Chand Agrawal

forward loss was not reflected in the return of income for Assessment

Year 2018-19, therefore, the same could not be allowed to set off of in

Assessment Year 2019-20. The said order came to be challenged by the

Assessee before the Ld. CIT(A) and the Ld. CIT(A) vide order dated

18/01/2025, dismissed the Appeal of the Assessee which has been

challenged by the Assessee in the above appeal.

5.

We have heard both the parties and perused the material available

on record. The Assessee claimed the set off of brought forward Long-

Term Capital Loss in the Return of Income for the year under

consideration, which was originally processed u/s 143(1) of the Act.

Subsequently, upon filing of rectification application u/s 154 of the Act,

the CPC itself accepted the correctness of the claim and allowed the set

off of brought forward loss vide rectification order dated 10/07/2020.

On the contrary while processing the revised return filed by the Assessee

CPC again disallowed the same. The said approach of the CPC is not

only erroneous computation of income but also an and inconsistent

approach Accordingly, we delete the disallowance made by the CPC,

which has been confirmed by the Ld. CIT(A).

6.

In the result, Appeal of the Assessee in ITA No. 1300/Del/2025 is

allowed.

4 ITA No. 1299 & 1300Del/2025 Mr. Prakash Chand Agrawal

ITA No. 1299/DEL/2025 (A.Y. 2018-19)

7.

The grievance of the Assessee in the present Appeal is against levy

of Rs. 5000/- on delay in filing the return of income.

8.

Brief facts of the case are that, the Assessee being a partnership

firm, filed return of income u/s 139(1) of the Income Tax Act, 1961 ('Act'

for short). However, without verifying the fact that the Assessee is a

partnership firm. An intimation u/s 143(1) has been issued by imposing

penalty of Rs. 5000/-.

9.

We have verified the Return of Income filed by the Assessee which

proves that the Assessee was a partner of aforesaid partnership firm for

the relevant Assessment Year and the Assessee has filed return of

income within the prescribed date and there is no delay in filing the

return. Thus, we find merits in the Grounds of Appeal of the Assessee,

therefore, we hereby delete the penalty imposed by the A.O. which has

been upheld by the Ld. CIT(A).

10.

In the result, Appeal in ITA No. 1299/Del/2025 is allowed.

Order pronounced in the open court on 19th May, 2026

Sd/- Sd/- (MANISH AGARWAL) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 19 .05.2026 Reshma Naheed, Sr.P.S

5 ITA No. 1299 & 1300Del/2025 Mr. Prakash Chand Agrawal

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