Before Sh. A.D. Jain, Vice President and Dr. B. R. R. Kumar, Accountant Member
ITA No. 1196/Del/2020 : Asstt. Year: 2010-11
ITA No. 1197/Del/2020 : Asstt. Year: 2011-12
ITA No. 1198/Del/2020 : Asstt. Year: 2012-13
ITA No. 1199/Del/2020 : Asstt. Year: 2013-14
ITA No. 1200/Del/2020 : Asstt. Year: 2014-15
ITA No. 1201/Del/2020 : Asstt. Year: 2015-16
ITA No. 1202/Del/2020 : Asstt. Year: 2016-17
KRBL Ltd.,
5190, Lahori Gate,
Delhi-110006
Vs
DCIT, Central Circle-07,
New Delhi-110055
(APPELLANT) (RESPONDENT)
PAN No. AAA CK4644H
Assessee by : Sh. Ajay Vohra, Sr. Adv., Sh. Aditya Vohra, Adv. & Sh. Arpit Goyal, CA
Revenue by : Ms. Meenakshi J. Goswami, CIT DR
Date of Hearing: 09.02.2022
Date of Pronouncement: 09.05.2022
Per Bench:
The assessee as well as the Revenue have filed these cross appeals against the separate orders of the ld. CIT(A)-24, New Delhi, dated 11.03.2020.
General
1.1 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/disallowances aggregating to INR 15,20,51,511 made by the Learned Deputy Commissioner of Income Tax, Central Circle-07, New Delhi (‘Ld. AO’) in the impugned order dated 31.12.2018 passed under section 153A read with section 143(3) of the Act (‘Impugned Assessment Order’) for the subject year.
1.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that the above referred additions/disallowances were made by Ld. AO merely on conjecture, surmises without due application of mind and/or affording reasonable opportunity of being heard to the Appellant, and in complete violation of the principles of natural justice.
No incriminating material was unearthed during search
2.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the additions made by the Ld. AO in the Impugned Assessment Order completed under section 153A of the Act for the subject year, without appreciating that no incriminating material/information was unearthed during the course of search operations at Appellant’s premises, and therefore the additions made in absence of any incriminating material/information are liable to be deleted.
2.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances made in the Impugned Assessment Order for subject year by ignoring the factual and legal position that these issues were accepted/ considered in assessment proceeding for subject year completed under section 143(3) of the Act, and hence the additions made by Ld. AO and affirmed by Ld. CIT(A) are illegal and liable to be deleted.
Impugned addition of INR 4,76,843/- on account of alleged difference between purchase/sales made to certain parties treating these as ungenuine/bogus transactions and commission paid to such parties for arranging such alleged bogus bills
3.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the impugned addition of INR 4,76,843/- made by the Ld. AO by alleging that the Appellant has failed to discharge its onus to prove the genuineness of the transactions without appreciating evidences/records/ information/ submissions furnished before the Ld. AO & Ld. CIT(A) that clearly proves that these transactions were genuine and undertaken through normal banking channel and trading results of the Appellant for subject year have been duly accepted by the Income-tax Department.
3.2 On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming the above addition without appreciating that the Impugned Assessment Order was passed without confronting the Appellant in respect of alleged evidences/ information collected by the Ld. AO and without allowing cross examination of the witnesses whose statements/letters were used against the Appellant, even after specific and repeated request of the Appellant.
Addition of INR 15,15,74,668/- in respect of the income earned by M/s KRBL DMCC, Dubai, a wholly owned subsidiary of the Appellant by alleging it as the income of the Appellant
4.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming an addition of INR 15,15,74,668/- in respect of the income received by M/s KRBL DMCC, Dubai, a wholly owned subsidiary of the Appellant in Dubai from M/s Interdev Aviation Services Pte. Ltd. by alleging that the same belongs to the Appellant. The Ld. CIT(A) has erred in not appreciating that this income accrued to/ and was received by KRBL DMCC entirely outside India, and duly accounted in its books of account, and consolidated with financial results of Appellant for the subject year as available in public domain.
4.2 On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating that KRBL DMCC is an independent legal entity incorporated in Dubai, and beyond the jurisdiction of Ld. AO, and hence transactions undertaken by it during the subject year with other non-resident entities are outside the scope of tax assessment in India.
4.3 On the facts and circumstance of the case and in law, the Ld. CIT(A) has failed to appreciate that no incriminating material was found during the course of search nor brought on record by the Ld. AO which may demonstrate that the said income belongs to the Appellant, and thus this addition made merely on conjecture and surmises should be deleted.
4.4 On the facts and circumstance of the case and in law, the Ld. CIT(A) has failed to appreciate that the transactions detailed in the Impugned Assessment Order for subject year between KRBL DMCC, Dubai and certain overseas entities and between Appellant and these overseas entities were bonafide commercial/ business transaction undertaken by the Appellant in its normal course of business through normal banking channels, in compliance with applicable Indian laws and duly accounted in the books of account of the Appellant.
4.5 On the facts and circumstance of the case and in law, the Ld. CIT(A) has failed to appreciate that the above income earned by KRBL DMCC Dubai, a wholly owned subsidiary of the Appellant was subsequently declared and distributed as divided to the Appellant, and duly offered to tax in India by the Appellant under section 115BBD of the Act in its return of income for the respective year of receipt.
4.6 Without prejudice to the above, even for the sake of argument, if it is presumed that the said income belongs to the Appellant, the necessary relief of the taxes already paid and discharged under section 115BBD of the Act should be granted to the Appellant, as the same income cannot be taxed twice under two different heads of income.
The impugned order passed by the Ld.AO is time barred in accordance with the provisions of section 153A/153B of the Act
5.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in holding that the Impugned Assessment Order passed by the Ld.AO for subject year is within the extended time limit prescribed under the provisions of the Act, and in not appreciating that the Impugned Assessment Order was passed on 31.12.2018 as against limitation period of on or before 31.12.2017, and consequently the same is bad-in-law, void and liable to be annulled.
Levy of interest under section 234A of the Act
6.1 That on the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in dismissing the ground raised by the Appellant with respect to levy of interest under section 234A of the Act, and has failed to appreciate that there was no delay in filing the return of income on part of the Appellant for the subject year. Thus, the interest levied under section 234A of the Act is unlawful/incorrect and liable to be deleted.
Grounds of Appeal for ITA No. 1197/Del/2020
“Ground 1: General
1.1 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances aggregating to INR 29,98,74,335 made by the Learned Deputy Commissioner of Income Tax, Central Circle-07, New Delhi (‘Ld. AO’) in the impugned order dated 31.12.2018 passed under section 153A read with section 143(3) of the Act (‘Impugned Assessment Order’) for the subject year.
1.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that the above referred additions/disallowances were made by Ld. AO merely on conjecture, surmises without due application of mind and/or affording reasonable opportunity of being heard to the Appellant, and in complete violation of the principles of natural justice.
No incriminating material was unearthed during search
2.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the additions made by the Ld. AO in the Impugned Assessment Order completed under section 153A of the Act for the subject year, without appreciating that no incriminating material/ information was unearthed during the course of search operations at Appellant’s premises, and therefore the additions made in absence of any incriminating material/ information are liable to be deleted.
2.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances made in the Impugned Assessment Order for subject year by ignoring the factual and legal position that these issues were accepted/ considered in assessment proceeding for subject year completed under section 143(3) of the Act, and hence the additions made by Ld. AO and affirmed by Ld. CIT(A) are illegal and liable to be deleted.
Impugned addition of INR 29,98,74,335/- on account of alleged difference between purchase/sales made to certain parties treating these as ungenuine/bogus transactions and commission paid to such parties for arranging such alleged bogus bills
3.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the impugned addition of INR 29,98,74,335/- made by the Ld. AO by alleging that the Appellant has failed to discharge its onus to prove the genuineness of the transactions without appreciating evidences/records/ information/ submissions furnished before the Ld. AO & Ld. CIT(A) that clearly proves that these transactions were genuine and undertaken through normal banking channel and trading results of the Appellant for subject year have been duly accepted by the Income-tax Department.
3.2 On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming the above addition without appreciating that the Impugned Assessment Order was passed without confronting the Appellant in respect of alleged evidences/ information collected by the Ld. AO and without allowing cross examination of the witnesses whose statements/ letters were used against the Appellant, even after specific and repeated request of the Appellant.
Grounds of Appeal for ITA No. 1198/Del/2020
“Ground 1: General
1.1 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances aggregating to INR 5,27,159 made by the Learned Deputy Commissioner of Income Tax, Central Circle-07, New Delhi (‘Ld. AO’) in the impugned order dated 31.12.2018 passed under section 153A read with section 143(3) of the Act (‘Impugned Assessment Order’) for the subject year.
1.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that the above referred additions/disallowances were made by Ld. AO merely on conjecture, surmises without due application of mind and/or affording reasonable opportunity of being heard to the Appellant, and in complete violation of the principles of natural justice.
No incriminating material was unearthed during search
2.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the additions made by the Ld. AO in the Impugned Assessment Order completed under section 153A of the Act for the subject year, without appreciating that no incriminating material/ information was unearthed during the course of search operations at Appellant’s premises, and therefore the additions made in absence of any incriminating material/ information are liable to be deleted.
2.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances made in the Impugned Assessment Order for subject year by ignoring the factual and legal position that these issues were accepted/ considered in assessment proceeding for subject year completed under section 143(3) of the Act, and hence the additions made by Ld. AO and affirmed by Ld. CIT(A) are illegal and liable to be deleted.
Impugned addition of INR 5,27,159/- on account of alleged difference between purchase/sales made to certain parties treating these as ungenuine/bogus transactions and commission paid to such parties for arranging such alleged bogus bills
3.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the impugned addition of INR 5,27,159/- made by the Ld. AO by alleging that the Appellant has failed to discharge its onus to prove the genuineness of the transactions without appreciating evidences/records/ information/ submissions furnished before the Ld. AO & Ld. CIT(A) that clearly proves that these transactions were genuine and undertaken through normal banking channel and trading results of the Appellant for subject year have been duly accepted by the Income-tax Department.
3.2 On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming the above addition without appreciating that the Impugned Assessment Order was passed without confronting the Appellant in respect of alleged evidences/ information collected by the Ld. AO and without allowing cross examination of the witnesses whose statements/ letters were used against the Appellant, even after specific and repeated request of the Appellant.
Grounds of Appeal for ITA No. 1199/Del/2020
“Ground 1: General
1.1 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances aggregating to INR 14,07,06,177 made by the Learned Deputy Commissioner of Income Tax, Central Circle-07, New Delhi (‘Ld. AO’) in the impugned order dated 31.12.2018 passed under section 153A read with section 143(3) of the Act (‘Impugned Assessment Order’) for the subject year.
1.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that the above referred additions/disallowances were made by Ld. AO merely on conjecture, surmises without due application of mind and/or affording reasonable opportunity of being heard to the Appellant, and in complete violation of the principles of natural justice.
No incriminating material was unearthed during search
2.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the additions made by the Ld. AO in the Impugned Assessment Order completed under section 153A of the Act for the subject year, without appreciating that no incriminating material/ information was unearthed during the course of search operations at Appellant’s premises, and therefore the additions made in absence of any incriminating material/ information are liable to be deleted.
2.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances made in the Impugned Assessment Order for subject year by ignoring the factual and legal position that these issues were accepted/ considered in assessment proceeding for subject year completed under section 143(3) of the Act, and hence the additions made by Ld. AO and affirmed by Ld. CIT(A) are illegal and liable to be deleted.
Impugned addition of INR 14,07,06,177/- on account of alleged difference between purchase/sales made to certain parties treating these as ungenuine/bogus transactions and commission paid to such parties for arranging such alleged bogus bills
3.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the impugned addition of INR 14,07,06,177/- made by the Ld. AO by alleging that the Appellant has failed to discharge its onus to prove the genuineness of the transactions without appreciating evidences/records/ information/ submissions furnished before the Ld. AO & Ld. CIT(A) that clearly proves that these transactions were genuine and undertaken through normal banking channel and trading results of the Appellant for subject year have been duly accepted by the Income-tax Department.
3.2 On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming the above addition without appreciating that the Impugned Assessment Order was passed without confronting the Appellant in respect of alleged evidences/ information collected by the Ld. AO and without allowing cross examination of the witnesses whose statements/ letters were used against the Appellant, even after specific and repeated request of the Appellant.
Grounds of Appeal for ITA No. 1200/Del/2020
“Ground 1: General
1.1 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances aggregating to INR 49,72,24,635 made by the Learned Deputy Commissioner of Income Tax, Central Circle-07, New Delhi (‘Ld. AO’) in the impugned order dated 31.12.2018 passed under section 153A read with section 143(3) of the Act (‘Impugned Assessment Order’) for the subject year.
1.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that the above referred additions/disallowances were made by Ld. AO merely on conjecture, surmises without due application of mind and/or affording reasonable opportunity of being heard to the Appellant, and in complete violation of the principles of natural justice.
No incriminating material was unearthed during search
2.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the additions made by the Ld. AO in the Impugned Assessment Order completed under section 153A of the Act for the subject year, without appreciating that no incriminating material/ information was unearthed during the course of search operations at Appellant’s premises, and therefore the additions made in absence of any incriminating material/ information are liable to be deleted.
2.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances made in the Impugned Assessment Order for subject year by ignoring the factual and legal position that these issues were accepted/ considered in assessment proceeding for subject year completed under section 143(3) of the Act, and hence the additions made by Ld. AO and affirmed by Ld. CIT(A) are illegal and liable to be deleted.
Impugned addition of INR 49,72,24,635/- on account of alleged difference between purchase/sales made to certain parties treating these as ungenuine/bogus transactions and commission paid to such parties for arranging such alleged bogus bills
3.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the impugned addition of INR 49,72,24,635/- made by the Ld. AO by alleging that the Appellant has failed to discharge its onus to prove the genuineness of the transactions without appreciating evidences/records/ information/ submissions furnished before the Ld. AO & Ld. CIT(A) that clearly proves that these transactions were genuine and undertaken through normal banking channel and trading results of the Appellant for subject year have been duly accepted by the Income-tax Department.
3.2 On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming the above addition without appreciating that the Impugned Assessment Order was passed without confronting the Appellant in respect of alleged evidences/ information collected by the Ld. AO and without allowing cross examination of the witnesses whose statements/ letters were used against the Appellant, even after specific and repeated request of the Appellant.
Grounds of Appeal for ITA No. 1201/Del/2020
“Ground 1: General
1.1 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances aggregating to INR 31,36,47,795 made by the Learned Deputy Commissioner of Income Tax, Central Circle-07, New Delhi (‘Ld. AO’) in the impugned order dated 31.12.2018 passed under section 153A read with section 143(3) of the Act (‘Impugned Assessment Order’) for the subject year.
1.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that the above referred additions/disallowances were made by Ld. AO merely on conjecture, surmises without due application of mind and/or affording reasonable opportunity of being heard to the Appellant, and in complete violation of the principles of natural justice.
No incriminating material was unearthed during search
2.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the additions made by the Ld. AO in the Impugned Assessment Order completed under section 153A of the Act for the subject year, without appreciating that no incriminating material/ information was unearthed during the course of search operations at Appellant’s premises, and therefore the additions made in absence of any incriminating material/ information are liable to be deleted.
2.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances made in the Impugned Assessment Order for subject year by ignoring the factual and legal position that these issues were accepted/ considered in assessment proceeding for subject year completed under section 143(3) of the Act, and hence the additions made by Ld. AO and affirmed by Ld. CIT(A) are illegal and liable to be deleted.
Impugned addition of INR 31,36,47,795/- on account of alleged difference between purchase/sales made to certain parties treating these as ungenuine/bogus transactions and commission paid to such parties for arranging such alleged bogus bills
3.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the impugned addition of INR 31,36,47,795/- made by the Ld. AO by alleging that the Appellant has failed to discharge its onus to prove the genuineness of the transactions without appreciating evidences/records/ information/ submissions furnished before the Ld. AO & Ld. CIT(A) that clearly proves that these transactions were genuine and undertaken through normal banking channel and trading results of the Appellant for subject year have been duly accepted by the Income-tax Department.
3.2 On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming the above addition without appreciating that the Impugned Assessment Order was passed without confronting the Appellant in respect of alleged evidences/ information collected by the Ld. AO and without allowing cross examination of the witnesses whose statements/ letters were used against the Appellant, even after specific and repeated request of the Appellant.
Grounds of Appeal for ITA No. 1202/Del/2020
“Ground 1: General
1.1 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances aggregating to INR 20,97,30,151 made by the Learned Deputy Commissioner of Income Tax, Central Circle-07, New Delhi (‘Ld. AO’) in the impugned order dated 31.12.2018 passed under section 153A read with section 143(3) of the Act (‘Impugned Assessment Order’) for the subject year.
1.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that the above referred additions/disallowances were made by Ld. AO merely on conjecture, surmises without due application of mind and/or affording reasonable opportunity of being heard to the Appellant, and in complete violation of the principles of natural justice.
No incriminating material was unearthed during search
2.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the additions made by the Ld. AO in the Impugned Assessment Order completed under section 153A of the Act for the subject year, without appreciating that no incriminating material/ information was unearthed during the course of search operations at Appellant’s premises, and therefore the additions made in absence of any incriminating material/ information are liable to be deleted.
2.2 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming additions/ disallowances made in the Impugned Assessment Order for subject year by ignoring the factual and legal position that these issues were accepted/ considered in assessment proceeding for subject year completed under section 143(3) of the Act, and hence the additions made by Ld. AO and affirmed by Ld. CIT(A) are illegal and liable to be deleted.
Impugned addition of INR 20,97,30,151/- on account of alleged difference between purchase/sales made to certain parties treating these as ungenuine/bogus transactions and commission paid to such parties for arranging such alleged bogus bills
3.1 On the facts and circumstance of the case and in law, the Ld. CIT(A) has erred in affirming the impugned addition of INR 20,97,30,151/- made by the Ld. AO by alleging that the Appellant has failed to discharge its onus to prove the genuineness of the transactions without appreciating evidences/records/ information/ submissions furnished before the Ld. AO & Ld. CIT(A) that clearly proves that these transactions were genuine and undertaken through normal banking channel and trading results of the Appellant for subject year have been duly accepted by the Income-tax Department.
3.2 On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming the above addition without appreciating that the Impugned Assessment Order was passed without confronting the Appellant in respect of alleged evidences/ information collected by the Ld. AO and without allowing cross examination of the witnesses whose statements/ letters were used against the Appellant, even after specific and repeated request of the Appellant.
ITA 1201/DEL/2020: KRBL Limited vs DCIT Central Circle-07, New Delhi
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