EAST DELHI WASTE PROCESSING COMPANY PRIVATE LIMITED,DELHI vs. DCIT CIRCLE 7(1), DELHI

ITA 3463/DEL/2025Status: DisposedITAT Delhi16 February 2026AY 2021-22Bench: SHRI MAHAVIR SINGH (Vice President), SHRI M. BALAGANESH (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that brought forward business losses must be set off against business income before unabsorbed depreciation, as per Sections 32(2) and 72 of the Act. It also found that the CIT(A)'s invocation of Section 79 was invalid due to lack of notice and without any grounds raised by the assessee. Furthermore, the additions under Section 41(1) were not sustainable as the amounts written back were either previously disallowed or related to capital creditors for which no deduction was claimed.

What were the facts?

The assessee challenged the CIT(A)'s order upholding the set-off of income against unabsorbed depreciation instead of brought forward business losses. The CIT(A) had also invoked Section 79 of the Act to deny set-off of losses, which the assessee contended was done suo motu without a proper notice. The assessee also contested additions made under Section 41(1) of the Act concerning written-back liabilities.

What were the issues?

Whether brought forward business losses should be set off before unabsorbed depreciation, and the validity of the CIT(A)'s action under Section 79. Also, whether additions under Section 41(1) were justified for written-back liabilities.

Which sections of the Income-tax Act were involved?

Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “E”: NEW DELHI

Before: SHRI MAHAVIR SINGH & SHRI M. BALAGANESH

For Appellant: Shri Vishal Kalra, Adv, Ms. Snigdha Gautam, Adv
For Respondent: Shri Pravin Rawal, CIT DR
Hearing: 16/02/2026Pronounced: 16/02/2026

PER M. BALAGANESH, AM

1.

The appeal in ITA No.3463/Del/2025 for AY 2021-22, arises out of the order of the ld ADDL/ JCIT(A)-2, Vadodara [hereinafter referred to as ‘ld. JCIT(A)’, in short] dated 06.03.2025 against the order of assessment passed u/s 154 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 01.06.2023 by the Assessing Officer, AO, CPC (hereinafter referred to as ‘ld. AO’).

2.

The Ground No. 1 raised by the assessee was stated to be not pressed by the ld AR for which necessary endorsement has been duly made in our file. Accordingly, ground No. 1 is hereby dismissed as not pressed. East Delhi Waste Processing Company Pvt. Ltd

3.

The Grounds No.

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 154

All 8,676 judgments and leading authorities on Section 154 →

Recent GST High Court judgments

Search GST case law →