DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-20, JHANDEWALAN vs. STERLING AGRO INDUSTRIES LIMITED , DELHI

ITA 4716/DEL/2025Status: DisposedITAT Delhi16 January 2026AY 2020-21Bench: YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRIMANISH AGARWAL (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CIT(A) correctly deleted the disallowance under Section 80-IA as the concept of 'initial assessment year' is not relevant for setting off of notional losses of earlier years, and the assessee has a choice in deciding the year from which to claim deduction. The Tribunal also upheld the deletion of disallowance under Section 14A, relying on judicial precedents that disallowance cannot exceed exempt income.

What were the facts?

The Revenue appealed against the orders of the CIT(A) for AYs 2017-18, 2018-19, and 2020-21, wherein the CIT(A) had allowed the assessee's appeals. The assessee was engaged in manufacturing dairy products and generating wind-based electricity. The main grounds of appeal by the Revenue pertained to the deletion of disallowances related to Section 80-IA and Section 14A.

What were the issues?

Whether the disallowance under Section 80-IA for Rs. 26,22,32,988/- and under Section 14A for Rs. 6,56,442/- deleted by the CIT(A) was justified, particularly concerning the set-off of unabsorbed depreciation and unquoted shares as dividend-generating investment.

Which sections of the Income-tax Act were involved?

Section 80-IA,Section 14A

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, DELHI

Before: YOGESH KUMAR U.S. & SHRIMANISH AGARWAL

For Appellant: Shri UdayanGarg, CA and Ms. Uditie Aggarwal, Adv
For Respondent: Ms. PoojaSwaroop, CIT(DR)
Hearing: 23/12/2025Pronounced: 16/01/2026

PER YOGESH KUMAR, U.S. JM: The captioned appeals are filed by the Revenue against the orders of Ld. Commissioner of Income Tax (Appeals)-27, New Delhi

(‘Ld. CIT(A)’ for short), dated 22/04/2025 pertaining to Assessment

Years2017-18, 2018-19 and 2020-21 respectively, wherein the Ld.

CIT(A) has allowed the Appeals filed by the Assessee.

2.

Since, the Revenue has raised identical grounds of Appeal, the captioned appeals of the Revenue are heard

together and decided in this common order. For

The order continues below.

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