Question 1

What are the key legal issues in Assistant Commissioner of Income Tax vs Trimaster Private Limited?

Accepted Answer

1. Whether the Ld. CIT(A) erred in deleting the disallowance on account of set-off of current year losses amounting to Rs.2,30,50,824/- without appreciating the fact that the assessee failed to substantiate its claim as per requirement of section 115BAA of the Act.

Question 2

What are the facts of Assistant Commissioner of Income Tax vs Trimaster Private Limited?

Accepted Answer

This case pertains to an appeal filed by the Revenue and a Cross Objection filed by the assessee against the order dated 06.01.2025 of the National Faceless Appeal Centre/Learned Commissioner of Income Tax (Appeals), New Delhi, arising out of an assessment order dated 25.12.2023 passed under section 143(3) read with section 144B of the Income Tax Act, 1961 for the Assessment Year 2021-22. The assessee, Trimaster Private Limited, claimed a set-off of current year losses amounting to Rs. 2,30,50,824/-. However, the Revenue contested this claim, arguing that the assessee failed to substantiate its claim as per the requirements of section 115BAA of the Act. The assessee had opted for taxation under section 115BAA, which imposes certain restrictions on the set-off of losses. The Revenue argued that the assessee did not provide the necessary details to justify the set-off of losses, leading to the disallowance of the claim by the Assessing Officer (AO). The Commissioner of Income Tax (Appeals) [CIT(A)] had deleted this disallowance, which the Revenue is now appealing against.

Assistant Commissioner of Income Tax vs Trimaster Private Limited

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