ACIT CENTRAL CIRCLE-15, NEW DELHI V. BRAHMAPUTRA INFRASTRUCTURE LIMITED, NEW DELHI

ITA 1407/DEL/2020

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax, Central Circle-1, Guwahati against M/s. Brahmaputra Infrastructure Ltd concerning the assessment year 2011-12. The core issue was the addition of Rs 15,49,25,883 to the income of the assessee, which was initially added by the Assessing Officer (AO) under section 143(3) read with section 147 of the Income-tax Act, 1961, following a notice under section 148. This amount was reflected in Form 26AS under a deactivated PAN, which was previously held by the assessee but was surrendered due to amalgamation with another company. The CITA deleted this addition, leading to the revenue's appeal. The tribunal upheld the CITA's decision, agreeing that the addition was a result of double accounting of the same income.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 303096 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAVED AKHTAR
• Assessee Lawyers: VIVEK MALHOTRA
• Keywords: TDS; FORM 26AS
• Section: 148; 143(3)

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No. 1407/Del/2020 (Assessment Year: 2011-12) DCIT, Central Circle-1, Guwahati Vs. M/s. Brahmaputra Infrastructure Ltd, A-7, NH-8, Mahipalpur Crossing, New Delhi (Appellant) (Respondent) PAN: AAACB8918K Assessee by : Shri Vivek Malhotra, CA Revenue by: Mr. Javed Akhtar, CIT DR Date of Hearing 20/01/2025 Date of pronouncement 16/04/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.1407/Del/2020 for AY 2011-12, arises out of the order of the Commissioner of Income Tax (Appeals)-37, New Delhi [hereinafter referred to as „ld. CIT(A)‟, in short] in Appeal No. CIT(A),Delhi- 37/10050/2019-20 dated 16.01.2020 against the order of assessment passed u/s 143(3) r.w.s. 147 of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) dated 29.12.2018 by the Assessing Officer, ACIT, Central Circle-15, New Delhi (hereinafter referred to as „ld. AO‟). 2. The only issue to be decided in this appeal is as to whether the learned CITA was justified in deleting the addition of Rs 15,49,25,883/- reflected in Form 26 AS in respect of PAN AABCB4435G in the facts and circumstances of the instant case. ITA No. 1407/Del/2020 M/s. Brahmaputra Infrastructure Ltd Page | 2 3. We have heard the rival submissions and perused the materials available on record. The assessee is in the business of Civil Construction and Property Construction / Infrastructure. The return of income for the assessment year 11-12 was filed by the Assessee company on 24-05-2012 declaring total income of Rs 12,13,34,612/-. This return was filed using PAN AAACB8918K. The assessment was completed under section 143(3) of the Act dated 28-03-2013 determining total income of Rs 12,74,52,217/-. This assessment was framed using the PAN AAACB8918K. The Assessee preferred an appeal before the Learned CITA and Learned CITA vide order dated 5-4-2018 granted relief of Rs 49,03,274/- to the Assessee. Accordingly, the total income got reduced to Rs 12,25,48,943/- pursuant to the order of the Learned CITA. Later, the case of the Assessee was sought to be reopened vide issuance of notice under section 148 of the Act on 31-03-2018 on the ground that a sum of Rs 15,49,25,883/- had escaped assessment in the hands of the Assessee. According to the Learned AO, a sum of Rs 15,49,25,883/- was reflected in Form 26AS of the Assessee with a different PAN AABCB4435G. The Learned AO observed that PAN AABCB4435G relate to Brahmaputra Infrastructure Limited i.e. Assessee but the same had been deactivated by the Income Tax Department and the present PAN of the Assessee is only AAACB8918K. The Learned AO also accepts the fact that the other PAN AABCB4435G had already been surrendered by the Assessee in the year 2009 pursuant to amalgamation. All these facts are recorded in page 2 of the assessment order. The Learned AO observed that the transaction of Rs 15,49,25,883/- reflected in Form 26AS of PAN AABCB4435G corresponding to the Assessee is not appearing in Form 26AS of PAN AAACB8918K. Accordingly, income of the Assessee to the tune of Rs 15,49,25,883/- had escaped assessment for which the assessment of the Assessee was sought to be reopened and reassessment was completed under section 147 read with section 143 of the ITA No. 1407/Del/2020 M/s. Brahmaputra Infrastructure Ltd Page | 3 Act on 29.12.2018 adding the said sum. On first appeal, the same was deleted by the Learned CITA by observing that pursuant to the amalgamation of the Assessee the erstwhile company‟s PAN got deactivated and new PAN AAACB8918K was allotted. Hence, it was categorically held by the Learned CITA that this is not a case of two PANs held by the Assessee. The relevant observations recorded by the Learned CITA are reproduced below:- “8.2 Finding a) Appellant is in the business of Civil Construction (EPC) and Property Construction/Infrastructure. b) The AO received information that PAN Query in ITD shows PAN AABCB4435G related to Brahmaputra Infrastructure Ltd. The said PAN had been deactivated in de-duplication process. The present PAN of the appellant is AAACB8918K. The earlier PAN Le. AABCB4435G was surrendered in the year 2009 pursuant to the Amalgamation. M/s Brahmaputra Infrastructure Ltd. (BIL) with PAN AABCB4435G was amalgamated vide order dated 23.01.2008 of Hon'ble Delhi High Court with M/s Brahmaputra Consortium Ltd. (M/s BCL) having PAN AAACB8918K. The name of M/s BCL changed to M/s BIL with PAN AAACB8918K after amalgamation. The PAN ie. AABCB4435G was surrendered with IT Department on 20.05.2008. c) The AO noted that the transactions of Rs.15,49,25,883/-in 26AS of PAN AABCB4435G corresponding to M/s BIL. are not appearing in 26AS of PAN AAACB8918K of the appellant. These transactions pertain to Contract receipts and Interest income. The AO held that these transactions are not recorded in the books of account of the appellant and made addition of Rs.15,49,25,883/- to total income of the appellant d) The addition made by the AO of Rs.15,49,25,883/ consisted of the following transactions as per the reasons recorded u/s 147 of the Act. Interest Income- Rs.65,25,914/- Contract Receipts Rs.14,83,99,919/- The Interest income relates to Indian Overseas Bank and the Contract receipts relate to DDA. However, on examination of AS-26 of old PAN i.e. AABCB4435G, it is seen that there are a number of double entries of the same amounts. After cancelling the double entries of the same amounts, the Interest income receipts from Indian Overseas Bank work out to ITA No. 1407/Del/2020 M/s. Brahmaputra Infrastructure Ltd Page | 4 Rs.65,25,914/- and Contract receipts from DDA work out to Rs.11,53,64,919/- totalling Rs.12,18,90,833/- 8.3 a) On examination of party wise Contract Receipts, it is seen that the appellant has shown Contract Receipts of Rs. 3,58,70,81,609/-. Out of the contract receipts of Rs. 30,80,74,363/- were received from Central Account- Delhi Development Authority. b) On examination of party wise Interest income, it is seen that appellant has received Interest income of Rs.3,45,43,557/-. This includes Interest income of Rs.66,59,033/- received from Indian Overseas Bank. c) During the F.Y. 2010-11 the total Contract Receipts received from DDA was Rs.30,80,74,363/- on which TDS claimed in ITR is Rs.51,90,359/ Out the same, the Contract Receipts from DDA as outlined above were deposited in the old PAN Le. AABCB5535G. d) During the FY 2010-11, the total Interest income receipts from Indian Overseas Bank was Rs.66,59,033/-, on which TDS claimed in ITR is Rs.6,48,916/-. Out of the same, Interest income from Indian Overseas Bank to the tune of Rs.65,25,914/- was deposited in the old PAN Le. AABCB5535G. e) M/s BIL with PAN AABCB4435G was amalgamated vide order dated 23.07.2008 of Hon'ble Delhi High Court with M/s BCL with PAN AAACB8918K. Subsequently, the name of the M/s BCL was changed to M/s BIL with PAN AAACB8918K. The old PAN AABCB4435G was surrendered with the department on 20.05.2008. As a result of Amalgamation, the PAN ie. AABCB4435G is not alive, so there is no question of filing of ITR in respect of the PAN AABCB4435G. The only ITR filed by the appellant was for PAN AAACB8918K. f) As a result of the Amalgamation the receipts/revenue of both the Companies was filed in a single IIR with PAN AAACB8918K. All the Contract Receipts and other receipts were accounted for in the IIR filed with the PAN AAACB8918K. The total Contract Receipts of Rs.3,58,70,81,609/- and total Interest income of Rs.3,45,43,557/- was accounted for in the ITR filed under the PAN AAACB8918K. These Contract Receipts and Interest income also included the Contract Receipts of as outlined above from DDA under PAN AABCB4435G and Interest income from Indian Overseas Bank of Rs.65,25,914/- under PAN AABCB4435G. As a result of reconciliation vis-à- vis books of accounts, it is seen that the Contract receipts and Interest Income credited by the appellant in the books of accounts are higher than the Contract receipts and Interest income appearing in the AS-26 statements g) Thus, the addition made by the AO of Rs.14,83,99,919/- (Contract Receipts from DDA) and Rs.65,25,914/- (Interest Income from IOB) totaling Rs.15,49,25,883/- is not sustainable as it tantamounts to double addition of ITA No. 1407/Del/2020 M/s. Brahmaputra Infrastructure Ltd Page | 5 the same receipts. These receipts have already been shown in the ITR filed under PAN AAACB8918K under the head Contract Receipts (Rs.3,58,70,81,609/-) and Interest Income (Rs.3,45,43,557/-). The addition made by the AO tantamount to double addition of the same Contract receipts from DDA and same Interest income from Indian Overseas Bank which is not permissible in the eyes of law. Hence, the said addition is hereby deleted. 8.4 In view of the facts outlined in Paras 8.2 and 8.3 above the addition of Rs.15,49,25,883/-made by the AO is not sustainable and is hereby deleted. Ground of appeal no. 3, 3.1, 3.2,33,34 and 3.5 are allowed.” 4. We find that none of the factual findings given by the Learned CITA could be controverted by the revenue before us. Hence we do not deem it fit to interfere with the said order of the Learned CITA. Accordingly, the ground raised by the revenue is dismissed. 5. In the result, the appeal of the revenue is dismissed. Order pronounced in the open court on 16/04/2025. -Sd/- -Sd/- (VIMAL KUMAR) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 16/04/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "