ACIT, CIRCLE-7(1), DELHI, DELHI vs. DEWAN SUGARS LIMITED, UTTAR PRADESH

ITA 3613/DEL/2025Status: DisposedITAT Delhi04 December 2025AY 2023-249 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the amount written off on account of OTS of term loans qualifies as a business deduction in the relevant financial year. The CIT(A)'s order was upheld, with directions for the AO to conduct specific verifications.

What were the facts?

The assessee claimed a deduction for an amount written off on account of a One Time Settlement (OTS) of term loans. The CPC disallowed this amount under Section 43B, stating it was not an actual payment. The CIT(A) deleted the addition, and the Revenue appealed this decision.

What were the issues?

Whether an amount written off on account of a One Time Settlement of term loans is eligible for deduction under Section 43B of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI

Before: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Respondent: Ms. Amisha S. Gupt, CIT-DR
Hearing: 04.12.2025Pronounced: 04.12.2025

Per Satbeer Singh Godara, Judicial Member:

This Revenue’s appeal for Assessment Year 2023-24, arises against the Addl./JCIT(A)-6, Chennai’s DIN & order No. ITBA/APL/S/250/2024-25/1074089550(1) dated 06.03.2025, in proceedings u/s 143(1) of the Income Tax Act, 1961. 2. Heard both the parties at length. Case file perused.

3.

This Revenue’s appeal raises the following substantive grounds:

“1. Whether on the facts and circumstances of the case and in law, the ld. CIT(A) has erred in allowing the appeals of the assessee by deleting the addition made by the CPC amounting to Rs.68,83,13,581/- on account of disallowance u/s 43B of the Act in any proceeding previous year but allowable during the previous year?”

The order continues below.

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