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Facts
The assessee's appeal for AY 2019-20 contested the disallowance of carry forward loss due to the return being filed after the due date. The Revenue's contradictory stance was noted, as they had previously treated the return as valid.
Held
The Tribunal held that disallowing carry forward losses based on a return previously considered valid was unsustainable in law. The Assessing Authority was directed to re-examine the carry forward losses.
Key Issues
Disallowance of carry forward losses on account of belated return filing; validity of disallowance under Section 36(1)(va).
Sections Cited
143(1), 139(1), 36(1)(va)
AI-generated summary — verify with the full judgment below
IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: "SMC" NEW DELHI
BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER
ITA No.8994/Del/2025 Assessment Year: 2019-20
Avalon Infrastructures Pvt. | Vs. | ACIT/DCIT, Ltd. | Circle-3(2), C/o- Malik & Co. (Advisors | Delhi-110002 & Advocates- Since 1927), 28A, Saket, Meerut, Uttar Pradesh-250001 PAN:AAACG4212D (Appellant) | (Respondent)
Assessee by | Shri Sankalp Malik, Adv. Department by | Sh. Manoj Kumar, Sr. DR
Date of hearing | 28.01.2026 Date of pronouncement | 28.01.2026
ORDER
This assessee's appeal for assessment year 2019-20, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the "CIT(A)/NFAC"], Delhi's DIN & Order No:ITBA/NFAC/S/250/2022-23/1049074576(1), dated 24.01.2023 involving proceedings under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act').
Heard both the parties. Case file perused.
The assessee's foremost substantive ground is directed against both the learned lower authorities' action in disallowing 01.11.2019 at 00:00:37 is a belated one which could not be treated as that u/s 139(1) of the Act. The Revenue could hardly dispute that the learned departmental authorities have themselves considered the assessee's impugned return as a valid one filed u/s 139(1) of the Act. Their impugned stand therefore
carry forward loss for the sole reason that its return filed on
appears to be a mutually contradictory and in not entertaining
the assessee's carry forward losses at in the same time is not
sustainable in law. The learned assessing authority is directed to
consider and verify all the relevant details regarding the
assessee's carry forward losses in these facts and circumstances.
Learned Counsel does not want to press the assessee's
claim of disallowance of Rs.6,56,193/- u/s 36(1)(va) on account
of deposit of ESI/PF beyond the "due" date. Rejected accordingly.
The assessee's appeal is partly allowed.
Order pronounced in the open court on 28th January, 2026.
Sd/-
(SATBEER SINGH GODARA) JUDICIAL MEMBER
Dated: 28th January, 2026.
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Copy forwarded to:
Appellant
- 2. Respondent - 3. CIT - 4. CIT(A) - 5. DR
Asst. Registrar, ITAT, New Delhi