DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 6(4), MUMBAI, MUMBAI vs. RAB ENTERPRISES (INDIA) PRIVATE LIMITED, MUMBAI

ITA 3867/MUM/2025Status: DisposedITAT Mumbai19 June 2026AY 2015-1630 pages
AI SummaryPartly Allowed

What were the facts?

The Department appealed the CIT(A)'s deletion of disallowance of brought forward losses and additions under Sections 68 and 69C. The assessee's shareholding changed significantly, raising questions under Section 79 regarding set-off of losses. The CIT(A) had deleted these disallowances and additions.

What did the Tribunal hold?

The Tribunal restored the matter concerning brought forward losses and additions under Sections 68 and 69C to the CIT(A) for de novo adjudication due to lack of independent examination of facts. However, the grounds related to Section 14A were dismissed as the CIT(A)'s order was well-reasoned and no new evidence was presented by the Revenue.

What were the issues?

Whether the change in shareholding pattern affects the set-off of brought forward losses under Section 79, and whether additions under Sections 68 and 69C were correctly deleted by the CIT(A). Also, whether the deduction of interest expenditure under Section 36(1)(iii) and disallowance under Section 14A were justified.

Which sections of the Income-tax Act were involved?

Section 79,Section 68,Section 69C,Section 14A,Section 36(1)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: HON’BLE SANDEEP GOSAIN & HON’BLE BIJAYANANDA PRUSETH

For Respondent: Shri Annavaram Kosuri

PER SANDEEP GOSAIN, JUDICIAL MEMBER:

This appeal is filed by the Department against the order of Ld. COMMISSIONER OF INCOME TAX (APPEAL)-54, MUMBAI vide DIN: ITBA/APL/S/250/2024-25/1074357864(1) dated 11-Mar-2025 for ITA 3867/MUM/2025 RAB ENTERPRISES (INDIA)

The order continues below.

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