AMBAY VALLEY LTD.,MUMBAI vs. ACIT, CENTRAL CIRCLE- 1, NEW DELHI

ITA 1434/DEL/2018Status: DisposedITAT Delhi16 April 2026AY 2013-1449 pages
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What were the facts?

The assessee company reported a significant loss due to amortization of foreign currency monetary item translation differences. The Assessing Officer made several additions to the returned income, which were partly deleted by the CIT(A). Both the department and the assessee filed appeals against the CIT(A)'s order.

What did the Tribunal hold?

The Tribunal deleted the addition on account of commission and brokerage expenses, holding that the assessee had provided sufficient details and TDS was deducted. The Tribunal also deleted the addition on account of outstanding debts written off, allowing it as a business loss based on judicial precedents.

What were the issues?

Whether commission and brokerage expenses incurred for residential accommodations and outstanding debts written off are allowable as business expenses or losses.

Which sections of the Income-tax Act were involved?

Section 14A,Section 36(2),Section 28(1),Section 37(1),Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘F’: NEW DELHI

For Appellant: Shri Aditya Vohra, Adv, Ms. Aakriti Bansal, CA
For Respondent: Ms. Monika Singh, CIT-DR
Hearing: 19.01.2026Pronounced: 16.04.2026

PER VIMAL KUMAR, JM: Income Tax (Appeals), 23, New Delhi [hereinafter referred to as ‘the Ld. CIT(A)’] passed u/s 250 of the Income Tax Act, 1961, [hereinafter referred to as ‘the Act’] arising out of assessment order dated 26.12.2016 of Ld. Assessing Officer/ Assistant Commissioner of Income Tax, Central Cirlce-1, New

The order continues below.

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