Case Number: ITA 1340/DEL/2020
Appellant: DCIT Central Circle-19, New Delhi
Respondent: KRBL Limited, Delhi
Assessment Year: 2012-13
Result: Appeal dismissed
Case Filed on: June 30, 2020
Order Type: Final Tribunal Order
Date of Order: May 9, 2022
Pronounced on: May 9, 2022
This case involves an appeal by the Deputy Commissioner of Income Tax (DCIT), Central Circle-19, New Delhi, against KRBL Limited, a company based in Delhi, for the assessment year 2012-13. The case was filed on June 30, 2020, and the final order was pronounced on May 9, 2022, by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘C’.
The order was delivered by the bench comprising Sh. A.D. Jain, Vice President, and Dr. B. R. R. Kumar, Accountant Member. The order number is ITA No. 1340/Del/2020, pertaining to the assessment year 2012-13.
The cross-appeals were filed against the separate orders of the CIT(A)-24, New Delhi, dated March 11, 2020. The case involved several grounds of appeal raised by the assessee, KRBL Limited, against the additions and disallowances made by the Assessing Officer (AO) under various sections of the Income Tax Act, 1961.
The Revenue also filed appeals on various grounds, including the deletion of additions made by the AO based on incriminating material found during the search, the applicability of Rule 6DD, and the theory of consistency.
The ITAT examined the submissions and evidence provided by both parties. The Tribunal noted that the primary onus was on the appellant to prove the genuineness of the transactions and the correctness of the additions made by the AO. The Tribunal found that the appellant had not provided sufficient evidence to substantiate its claims and that the CIT(A) had correctly upheld the additions/disallowances made by the AO.
Regarding the issue of no incriminating material, the Tribunal observed that the search operations did reveal certain documents and evidence that justified the additions made by the AO. The Tribunal also addressed the issue of alleged bogus transactions and found that the AO had rightly made the additions based on the discrepancies observed in the transactions.
On the matter of income of the subsidiary, the Tribunal upheld the CIT(A)’s decision, noting that the income earned by KRBL DMCC, Dubai, was rightly included in the appellant’s income as per the provisions of the Income Tax Act.
The Tribunal also dismissed the ground related to the time-barred assessment order, stating that the assessment was completed within the prescribed time limit. The issue of levy of interest under section 234A was also upheld by the Tribunal, finding no merit in the appellant’s arguments.
The Tribunal, after considering all the facts and submissions, dismissed the appeal filed by the appellant, KRBL Limited, and upheld the order passed by the CIT(A). The Tribunal found that the additions and disallowances made by the AO were justified and based on valid evidence.
This case highlights the importance of maintaining proper documentation and evidence to support the genuineness of transactions and compliance with the provisions of the Income Tax Act. The decision reinforces the need for taxpayers to be diligent in their record-keeping and to ensure that all transactions are conducted in accordance with the law.
Income Tax Appeal Case: ITA 1340/DEL/2020 – DCIT Central Circle-19, New Delhi vs KRBL Limited, 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