Appellant: KRBL Limited, Delhi
Respondent: DCIT Central Circle-07, New Delhi
Assessment Year: 2011-12
Result: Favorable to Appellant
Case Filed On: June 18, 2020
Order Type: Final Tribunal Order
Date of Order: May 9, 2022
Pronounced On: May 9, 2022
Vice President: Sh. A.D. Jain
Accountant Member: Dr. B. R. R. Kumar
KRBL Limited, a rice milling company, was involved in a legal battle with the Deputy Commissioner of Income Tax (DCIT) Central Circle-07, New Delhi. The appeal was filed against the order of the CIT(A)-24, New Delhi, dated March 11, 2020, for the assessment year 2011-12. The primary issues revolved around additions and disallowances made by the AO, which were confirmed by the CIT(A).
Ground 1: The appellant contested the additions/disallowances amounting to INR 29,98,74,335 made by the AO, which were confirmed by the CIT(A). It was argued that these additions were based on conjectures and without proper application of mind, violating principles of natural justice.
Ground 2: The appellant argued that the additions were made without any incriminating material unearthed during the search operations at the appellant’s premises. The CIT(A) erred in affirming these additions.
Ground 3: The appellant challenged the addition of INR 29,98,74,335 on account of alleged differences between purchases/sales made to certain parties, treating these as bogus transactions. The appellant provided evidence to prove the genuineness of these transactions, which were ignored by the CIT(A).
Ground 4: The appellant claimed that the impugned assessment order was time-barred as per the provisions of section 153A/153B of the Act.
Ground 5: The appellant contested the levy of interest under section 234A of the Act, asserting that there was no delay in filing the return of income.
The tribunal noted that no incriminating material was found during the search operations, which could justify the additions made by the AO. The assessments were completed based on materials already available in the regular assessment proceedings.
It was established that the transactions in question were genuine, backed by proper documentation and conducted through regular banking channels. The tribunal found no basis for treating these as bogus.
The tribunal agreed with the appellant that the assessment order was time-barred. The AO had passed the order beyond the permissible period, rendering it void and liable to be annulled.
The tribunal found that the appellant had filed the return of income within the due date, and hence, the levy of interest under section 234A was not justified.
In conclusion, the tribunal ruled in favor of KRBL Limited, Delhi, quashing the additions and disallowances made by the AO and confirmed by the CIT(A). The assessment order for the year 2011-12 was declared void due to being time-barred, and the interest levied under section 234A was deleted.
Note: This article is a summary based on the final order of the Income Tax Appellate Tribunal, Delhi Bench, in the case ITA 1197/DEL/2020. The detailed grounds and findings are available in the official order.
ITA 1197/DEL/2020: KRBL Limited, Delhi vs. DCIT Central Circle-07, New Delhi
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