Case Number: ITA 1203/DEL/2020
Appellant: Premier Seeds Corporation, New Delhi
Respondent: ACIT Circle-36(1), New Delhi
Assessment Year: 2016-17
Case Filed On: 2020-06-18
Order Type: Final Tribunal Order
Date of Order: 2022-10-28
Pronounced On: 2022-10-28
This appeal was filed by Premier Seeds Corporation against the order passed by the Assistant Commissioner of Income Tax (ACIT), Circle-36(1), New Delhi, for the assessment year 2016-17. The appellant is a company engaged in the business of seed production and distribution. The appeal challenges the tax assessment and additions made by the ACIT during the scrutiny assessment.
Premier Seeds Corporation raised several grounds of appeal against the ACIT’s order, which include:
1.1 The Commissioner of Income Tax (Appeals) [CIT(A)] erred in confirming the additions and disallowances without providing a proper opportunity for the appellant to file submissions and details.
2.1 The CIT(A) affirmed the additions made by the ACIT despite no incriminating material being found during the search operations at the appellant’s premises.
3.1 The CIT(A) erred in affirming the addition on account of alleged differences between purchases and sales made to certain parties, treating these transactions as ungenuine or bogus.
The tribunal noted that no incriminating material was found during the search operations for the assessment year 2016-17, which should be the basis for any additions made under section 153A of the Income Tax Act. Therefore, the additions made by the ACIT and confirmed by the CIT(A) were found to be unsustainable.
The tribunal observed that the appellant provided substantial evidence and documentation to support the genuineness of the transactions in question. The purchases and sales were conducted through regular banking channels, and the trading results were duly accepted by the Income-tax Department in the past assessments. The tribunal found the ACIT’s and CIT(A)’s stance on treating these transactions as bogus to be unsubstantiated.
In the final judgment, the tribunal concluded that the additions and disallowances made by the ACIT and confirmed by the CIT(A) were not justified. The tribunal directed the deletion of all such additions, providing relief to the appellant. The appeal filed by Premier Seeds Corporation was allowed, and the assessment order was annulled.
The tribunal’s decision in ITA 1203/DEL/2020 highlights the importance of proper evidence and adherence to principles of natural justice in tax assessments. The deletion of additions and disallowances by the tribunal sets a precedent for similar cases where assessments are made without substantial incriminating material.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform