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49. TS-596-ITAT-2025 (Delhi)
Toshiba Water Solutions Pvt. Ltd. vs. ACIT
A.Y.: 2014-15
Date of Order : 7.5.2025
Section: 251
Enhancement made by CIT(A), by exercising a power not conferred by section 251(2) being without jurisdiction needs to be deleted.FACTS
The assessee, for assessment year 2014-15, filed its return of income declaring a loss of ₹10,46,67,132. The Assessing Officer (AO) completed the assessment under section 143(3) of the Act, made various disallowances and consequently determined the total loss to be ₹4,70,23,278. Aggrieved, the assessee preferred an appeal to the CIT(A) who deleted most of the additions made by the AO except a sum of ₹81,10,231 in respect of balances written off.
However, CIT(A) enhanced the income by ₹1,54,68,280 on account of provision for contract loss. The assessee challenged this addition in the appeal filed by him to the Tribunal and also raised an additional ground contending that this is absolutely new source of income and that CIT(A) could not have invoked his powers of enhancement in terms of section 251(2) to make an
