Case Number: ITA 1200/DEL/2020
Appellant: KRBL Limited, Delhi
Respondent: DCIT Central Circle-07, New Delhi
Assessment Year: 2014-15
Case Filed On: 2020-06-18
Order Type: Final Tribunal Order
Date of Order: 2022-05-09
Pronounced On: 2022-05-09
KRBL Limited, a prominent rice milling company based in Delhi, filed an appeal against the Deputy Commissioner of Income Tax (DCIT), Central Circle-07, New Delhi, challenging the assessment order for the year 2014-15. The appeal was filed on June 18, 2020, and the final order was pronounced by the Income Tax Appellate Tribunal (ITAT) on May 9, 2022.
KRBL Limited argued that the Commissioner of Income Tax (Appeals) [CIT(A)] erred in confirming additions and disallowances amounting to INR 49,72,24,635 made by the Assessing Officer (AO) under section 153A read with section 143(3) of the Income Tax Act for the assessment year 2014-15. The appellant contended that the additions were made based on conjectures and surmises without proper application of mind and without providing a reasonable opportunity to be heard, violating the principles of natural justice.
The appellant argued that no incriminating material or information was unearthed during the search operations conducted at KRBL Limited’s premises. Therefore, the additions made in the absence of any incriminating material or information were liable to be deleted. The appellant also emphasized that these issues were accepted in the assessment proceedings for the subject year completed under section 143(3) of the Act.
KRBL Limited contended that the CIT(A) erred in affirming an addition of INR 4,76,843 on account of alleged differences between purchases and sales made to certain parties, treating these transactions as bogus. The appellant argued that the transactions were genuine and undertaken through normal banking channels, and the trading results for the subject year were duly accepted by the Income Tax Department.
The appellant argued against the addition of INR 15,15,74,668 made by the CIT(A), attributing the income earned by KRBL DMCC, Dubai, a wholly owned subsidiary of the appellant, to KRBL Limited. The appellant contended that the income was earned and received by KRBL DMCC outside India and was duly accounted for in its books. The income was also consolidated with the financial results of KRBL Limited and offered to tax under section 115BBD of the Act.
The appellant argued that the assessment order was passed beyond the limitation period prescribed under sections 153A/153B of the Act. The impugned assessment order was passed on December 31, 2018, whereas the limitation period was on or before December 31, 2017. Therefore, the order was void and liable to be annulled.
KRBL Limited contested the levy of interest under section 234A of the Act, arguing that there was no delay in filing the return of income for the subject year.
The ITAT Delhi Bench ‘C’, comprising Sh. A.D. Jain, Vice President, and Dr. B. R. R. Kumar, Accountant Member, examined the cross appeals filed by both the assessee and the Revenue against the orders of the CIT(A)-24, New Delhi, dated March 11, 2020.
After detailed deliberations, the ITAT concluded that:
In conclusion, the ITAT allowed the appeal filed by KRBL Limited, deleting the additions and disallowances made by the AO and setting aside the assessment order for the assessment year 2014-15.
ITA 1200/DEL/2020: KRBL Limited, Delhi vs DCIT Central Circle-07, New Delhi
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