This detailed analysis explores the legal proceedings of ITA No. 1157/DEL/2019 involving Surya Agrotech Infrastructure Ltd, the appellant, and the ACIT, Central Circle-8, New Delhi, the respondent. The case, filed on February 13, 2019, pertains to the assessment year 2013-14 and was resolved with a final tribunal order on May 7, 2019, pronounced on the same date.
Surya Agrotech Infrastructure Ltd, a part of the Priya Gold group, filed an appeal against the order of the learned CIT(A)-24, New Delhi, dated January 7, 2019, concerning the assessment year 2013-14. The appeal was made to challenge the additions made by the Assistant Commissioner of Income Tax (ACIT), Central Circle-8, New Delhi, under Sections 68 and 37 of the Income Tax Act, 1961, related to unexplained share capital and commission expenses, respectively.
The case was heard by the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘G’, with the bench comprising Shri G.D. Agrawal, Vice President, and Ms. Suchitra Kamble, Judicial Member. The appellant was represented by Shri Ved Jain, Advocate, and Shri Himanshu Agarwal, CA, while the respondent was represented by Shri S.S. Rana, CIT-DR.
The appellant contended that the additions made by the ACIT were unjustified as the share capital received was already included in the undisclosed income declared by the flagship company of the Priya Gold group, M/s Surya Food and Agro Ltd., before the Settlement Commission. It was argued that taxing the same amount again in the hands of Surya Agrotech Infrastructure Ltd would result in double taxation.
The respondent supported the order of the ACIT, arguing that the unexplained share capital and commission expenses were correctly added to the income of the appellant. The CIT-DR furnished detailed arguments and case laws to justify the additions under Sections 68 and 37 of the Income Tax Act.
The tribunal carefully considered the arguments of both parties and examined the material placed on record. The tribunal observed that the undisclosed income of the Priya Gold group, which included Surya Agrotech Infrastructure Ltd, was already declared and taxed in the hands of M/s Surya Food and Agro Ltd. before the Settlement Commission. The tribunal noted that the Settlement Commission had admitted the application of M/s Surya Food and Agro Ltd., and the additional income was settled at Rs. 55.77 crores as against the disclosed income of Rs. 49.12 crores.
The tribunal emphasized that taxing the share capital received by Surya Agrotech Infrastructure Ltd, which was already included in the undisclosed income of M/s Surya Food and Agro Ltd., would result in double taxation. The tribunal agreed with the earlier order passed in the stay petition filed by the appellant, which highlighted the issue of double taxation.
The order was pronounced in the open court on May 7, 2019, by Vice President Shri G.D. Agrawal and Judicial Member Ms. Suchitra Kamble. The tribunal concluded that since the undisclosed income was already taxed in the hands of M/s Surya Food and Agro Ltd., the application of the said income in the form of share capital in Surya Agrotech Infrastructure Ltd could not be taxed again. Accordingly, the addition for unexplained share capital was deleted, and the appeal was allowed.
Appellant: Surya Agrotech Infrastructure Ltd, New Delhi
Respondent: ACIT, Central Circle-8, New Delhi
Assessment Year: 2013-14
Case Filed On: February 13, 2019
Order Type: Final Tribunal Order
Date of Order: May 7, 2019
Date Pronounced: May 7, 2019
This case highlights the importance of avoiding double taxation and ensuring that the same income is not taxed multiple times under different heads. The tribunal’s decision underscores the necessity of a fair and comprehensive assessment process that takes into account previous declarations and settlements to prevent unjust tax burdens on taxpayers.
The resolution of ITA No. 1157/DEL/2019 demonstrates the tribunal’s role in ensuring that appeals are heard fairly and that decisions are made based on the merits of the case. The deletion of the addition for unexplained share capital in the hands of Surya Agrotech Infrastructure Ltd affirms the principle of avoiding double taxation and upholding justice in tax matters.
Tax Appeal Resolution in ITA No. 1157/DEL/2019 for Surya Agrotech Infrastructure Ltd
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