This article provides an in-depth analysis of the case identified as ITA No. 1338/DEL/2020, involving the appellant, Deputy Commissioner of Income Tax (DCIT) Central Circle-19, New Delhi, and the respondent, KRBL Limited, Delhi. The case pertains to the assessment year 2010-11 and was filed on June 30, 2020. The final order was pronounced on May 09, 2022.
The dispute centers around the assessment orders passed for multiple assessment years, including 2010-11, by the Assessing Officer (AO), DCIT Central Circle-19, New Delhi. Dissatisfied with the assessments, KRBL Limited appealed to the Commissioner of Income Tax (Appeals)-24, New Delhi [CIT(A)], who provided partial relief. The Revenue then challenged the CIT(A)’s order based on various grounds, including the legality of the additions made during assessments.
The Revenue’s appeal raised significant concerns regarding the procedural and substantive aspects of the CIT(A)’s decisions. The core issues revolved around the adequacy of the incriminating material found during searches, the applicability of Rule 6DD under the Income Tax Rules, and the validity of the additions made in the absence of such material.
The primary contentions of the Revenue were as follows:
The case was heard by Sh. A.D. Jain, Vice President, and Dr. B. R. R. Kumar, Accountant Member, at the Delhi Bench ‘C’ of the ITAT. The Department was represented by Ms. Meenakshi J. Goswami, CIT DR, while KRBL Limited was represented by Sh. Ajay Vohra, Sr. Adv., Sh. Aditya Vohra, Adv., and Sh. Arpit Goyal, CA.
The Tribunal examined the evidence and arguments presented by both sides, focusing on the following key aspects:
After thorough consideration, the Tribunal upheld the CIT(A)’s order in favor of KRBL Limited for the following reasons:
The final order stated:
“The appeal of the Revenue is dismissed. The additions made by the Assessing Officer are deleted, and the order of the CIT(A) is upheld.”
This case underscores the importance of maintaining procedural correctness and relying on substantial evidence in tax assessments and appeals. It highlights the necessity for tax authorities to ensure that assessments are backed by concrete incriminating material, especially in cases involving significant financial transactions.
DCIT Central Circle-19, New Delhi vs. KRBL Limited: Jurisdictional Challenge
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