GREATWALL MARKETING PVT LTD,DELHI vs. ACIT CENTRAL CIRCLE-30, NEW DELHI

PER NAVEEN CHANDRA, AM :-

This appeal by the assessee is directed against the order of the ld.
CIT(A) -30, New Delhi dated 10.06.2025 pertaining to A.Y 2012-13. ITA No. 4158/DEL/2025 [A.Y 2012-13]
2. The only issue arising out of the 12 grounds of appeal raised by the assessee pertain to the addition made u/s 68 of the Income-tax Act,
1961 [the Act, for short] wherein the Assessing Officer has denied the set off of addition with loss of the assessee company.
3. Briefly stated, the facts of the case are that the assessee is a private limited company and engaged in the business as trader in commodities, besides earning interest income and agricultural income, as depicted in the audited accounts. The assessee filed its return for AY
2012-13 of 29.09.2012 declaring nil income. Further a further return was furnished u/s 153C on 23.09.2016 declaring nil income. Assessment u/s 153C r.w.s 153A was completed on 12.05.2017. 4. Thereafter, the assessment was reopened vide notice dated
30.03.2019. The assessee filed its return of income in response to notice u/s 148 of the Act on 20.07.2019 declaring income of Rs. NIL (after set off of brought forward business loss/unabsorbed depreciation of Rs.51,67,119/-). The details of the income are as under:
Income from business

Rs.41,86,125

Income from Other sources

Rs.9,80,994

Less brought forward unabsorbed depreciation

Rs.51,67,119

Total Income

NIL

ITA No. 4158/DEL/2025 [A.Y 2012-13]
5. The Assessing Officer completed the assessment u/s143(3)/147 of the Act after making addition of Rs.52,53,380/- received as speculative profit, as unexplained credits u/s 68 of the Act and denied the carry forward of loss.
6. Aggrieved, the assessee went in appeal before the ld. CIT(A) who confirmed the action of the Assessing Officer.
7. Aggrieved further, the assessee is in appeal before us.
8. Before us, the ld. counsel for the assessee vehemently stated that for the addition made u/s 68 of the Act during the year under consideration, there was no prohibition under the Statute for setting off the same from the unabsorbed depreciation incurred in the company.
Hence, the ld AR pleaded for the unabsorbed depreciation to be allowed.
9. On the other hand, the ld. DR relied on the orders of the Assessing
Officer and the ld. CIT(A).
10. We have heard the rival submissions and have perused the relevant material on record. We find that prior to the insertion of section 115BBE w.e.f. AY 2013-14, the deemed income u/s 68,69,69A,69B,69C and 69D were allowed to be set off from the losses incurred in the business. We note that during the A.Y 2012-13, the statute did not prohibit the set off of the addition made u/s 68 of the Act from the income/loss of the ITA No. 4158/DEL/2025 [A.Y 2012-13]
assessee’s business income or from other sources. We therefore, do not interfere with the addition made u/s 68 of the Act. However, the assessee may be granted set off of unabsorbed depreciation incurred by the assessee from the addition made u/s 68 of the Act. We order accordingly. Ground no 9 is allowed.
11. As the relief is granted the other grounds becomes academic.
12. In the result, appeal of assessee in ITA No. 4158/DEL/2025 is partly allowed.
Order pronounced in open court on 29.10.2025. [SATBEER SINGH GODARA]

[NAVEEN CHANDRA]
JUDICIAL MEMBER

ACCOUNTANT MEMBER

Dated : 09th December, 2025. VL/