Case Number: ITA 1198/DEL/2020
Appellant: KRBL Limited, Delhi
Respondent: DCIT Central Circle-07, New Delhi
Assessment Year: 2012-13
Date Filed: June 18, 2020
Order Type: Final Tribunal Order
Date of Order: May 9, 2022
Date Pronounced: May 9, 2022
In the Income Tax Appellate Tribunal Delhi Bench ‘C’, New Delhi, a case was brought forward by KRBL Limited against the Deputy Commissioner of Income Tax (DCIT), Central Circle-07, New Delhi. This appeal is related to the assessment year 2012-13.
The appellant, KRBL Limited, filed this appeal against the order passed by the Commissioner of Income Tax (Appeals)-24, New Delhi, dated March 11, 2020. The appeal was heard by a bench comprising Sh. A.D. Jain, Vice President, and Dr. B. R. R. Kumar, Accountant Member.
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.
The appellant argued that the additions/disallowances were made by the 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.
The appellant contended that the Ld. CIT(A) 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.
The appellant contested the 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. The appellant argued that the Ld. CIT(A) failed to appreciate 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.
The appellant claimed that the Impugned Assessment Order passed by the Ld. AO for the subject year was time-barred in accordance with the provisions of section 153A/153B of the Act, as it was passed on 31.12.2018 against the limitation period of on or before 31.12.2017, making it void and liable to be annulled.
The appellant challenged 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, making the interest levied unlawful and incorrect, and thus liable to be deleted.
The DCIT, Central Circle-07, filed cross appeals against the separate orders of the Ld. CIT(A)-24, New Delhi, dated 11.03.2020. The primary contention was the deletion of significant additions made by the AO on various grounds, including alleged differences in purchase/sales, commission payments for bogus transactions, and stock differences, among others.
After considering the arguments from both sides, the bench delivered its judgment on May 9, 2022. The order addressed each ground of appeal raised by both the appellant and the respondent, providing a detailed analysis and justification for the final decision.
The Income Tax Appellate Tribunal’s decision in ITA No. 1198/DEL/2020 for the assessment year 2012-13 provided a comprehensive examination of the issues raised by KRBL Limited and the DCIT Central Circle-07. The case highlighted critical aspects of tax assessment, the importance of proper documentation, and adherence to legal procedures during search operations and subsequent assessments. The tribunal’s order reinforced the principles of natural justice and the need for evidence-based decision-making in tax disputes.
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