M/S. MAWANA SUGARS LTD.,NEW DELHI vs. DCIT, NEW DELHI
Facts
The assessee, Mawana Sugars Ltd., appealed against the CIT(A)'s order upholding the rejection of a long-term capital loss of Rs. 132.48 crores arising from the transfer of land to the Delhi Development Authority. This loss was initially claimed and disallowed in A.Y. 2001-02, and then claimed again in A.Y. 2004-05 as an abundant precaution.
Held
The Tribunal held that since the claim for long-term capital loss squarely pertained to Assessment Year 2001-02, it should be considered in that specific year. Consequently, the Tribunal found no error in the disallowance of this claim in the Assessment Year 2004-05 under consideration.
Key Issues
Whether a long-term capital loss pertaining to an earlier assessment year (A.Y. 2001-02) can be claimed in a subsequent assessment year (A.Y. 2004-05) as an abundant precaution after its disallowance in the original year.
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘E’ BENCH,
Before: SHRI SAKTIJIT DEY, & SHRI N.K. BILLAIYA
PER N.K. BILLAIYA, ACCOUNTANT MEMBER:-
This appeal by the assessee is preferred against the order of the ld. CIT(A), LTU New Delhi dated 26.12.2013 pertaining to A.Y. 2004-05.
The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in upholding the claim of rejection of long term capital loss of Rs. 132,48,60,804/- on transfer of land to Delhi Development Authority.
Facts on record show that the assessee claimed this loss by way
of revised return in which it stated that this loss on surrender of land
to DDA was claimed in A.Y 2001-02 wherein the claim has been
disallowed and without prejudice to the claim in A.Y 2001-02, claim is
made in A.Y 2004-05 as an abundant precaution.
The assessee explained the underlying facts which gave rise to
the claim of loss. Since the claim of loss pertains to A.Y 2001-02, the
same shall be considered in that A.Y and, therefore we do not find any
fault in disallowing the claim in the year under consideration.
In the result, the appeal of the assessee in ITA No.
1244/DEL/2014 is dismissed.
The order is pronounced in the open court on 31.01.2024.
Sd/- Sd/-
[SAKTIJIT DEY] [N.K. BILLAIYA] VICE PRESIDENT ACCOUNTANT MEMBER
Dated: 31st JANUARY, 2024.
VL/
