Aquiss Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 4877/DEL/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7399 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 27-07-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SULEKHA VERMA
• Assessee Lawyers: ASHVINI KUMAR
• Keywords: Accommodation entries

Judgement Text

ITA NO.-4877/DEL/2015. AQUISS PRIVATE LTD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: F: NEW DELHI) BEFORE SHRI K.N. CHARY, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 4877/DEL/2015 ( ASSESSMENT YEAR: 2011-12) AQUISS PRIVATE LTD., 30 COMMUNITY, CENTRE, SAKET, NEW DELHI-110017 VS. ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 23 (PRESENTLY KNOWN AS CC-32), ARA CENTRE, JHANDEWALAN EXTN., NEW DELHI. PAN NO: AAACS0576L APPELLANT RESPONDENT ASSESSEE BY : SHRI AMOL SINHA, ADV. AND SHRI. ASHVINI KUMAR, ADV. REVENUE BY : SMT. SULEKHA VERMA, CIT(DR), ORDER PER: ANADEE NATH MISSHRA, AM THIS APPEAL BY THE ASSESSEE IS FILED AGAINST THE OR DER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-30, NEW DELHI-110055, DATED 19.03.2015 FOR ASSESSMENT YEAR 2011-12. THE GROUNDS OF APPEAL ARE AS UNDER: 1. THE CIT(A)-30 HAS ERRED IN LAW AS ALSO IN THE FACTS AND CIRCUMSTANCES OF THE CASE TO HOLD THE ASSESSEE COMPANY AS A BOGUS /S HELL /PAPER/ CONDUIT ITA NO.-4877/DEL/2015. AQUISS PRIVATE LTD. PAGE 2 OF 4 /DUMMY COMPANY CREATED FOR PROVIDING ACCOMMODATION ENTRIES WHEREAS THE ASSESSEE COMPANY IS BEING ASSESSED REGULARLY FOR TH E LAST TWO DECADES AND THE INCOME TAX DEPARTMENT HAS BEEN ACCEPTING IT AS A GE NUINE COMPANY, AND IN NO ASSESSMENT OTHER THAN THE PRESENT ASSESSMENT, THE D EPARTMENT HAS EVER ALLEGED IT OF GIVING ANY ACCOMMODATION ENTRIES. 2. THE CIT(A) -30 HAS ERRED IN LAW AS ALSO IN THE F ACTS AND CIRCUMSTANCES OF THE CASE TO HOLD THE FUNDS ADVANCED AS ADVANCE AGA INST LAND PURCHASE AS ACCOMMODATION ENTRY, WHEN THE SOURCE OF THESE FUNDS IN THE HANDS OF THE ASSESSEE COMPANY HAS DULY BEEN ACCEPTED BY THE INCO ME TAX DEPARTMENT IN THE ASSESSMENTS COMPLETED U/S 153C OF THE INCOME TAX AC T, 1961 ON 28.03.2013. 3. THE CIT(A)-30 HAS ERRED IN LAW AS ALSO IN THE FA CTS AND CIRCUMSTANCES OF THE CASE TO HOLD THAT AMOUNT, IF ANY, RECEIVED ON F INALIZATION OF ARBITRATION AWARD WOULD BE TAXED IN THE HANDS OF THE ASSESSEE AS PR PROVISION OF LAW, WHEN THERE IS NO PROVISION OF LAW, AS SUCH, WHICH MAY EN ABLE THE DEPARTMENT TO TAX THE REFUND BACK OF ONES OWN MONEY. 3.1 THE DIRECTION OF LD. CIT(APPEALS) THAT THE AWAR D, IF DECIDED IN FAVOUR OF THE ASSESSEE, WOULD BE TAXED IN THE HANDS OF THE AS SESSEE, IS SELF CONTRADICTORY, SINCE AT ONE HAND, HE GIVES A CLEAR CUT-FINDING THA T MOU IS A COLOURABLE DEVICE AND THAT THE FUNDS BELONG TO BPTP GROUP COMPANIES A ND IN THE SAME BREATH, HE TALKS OF TAXING THE SAME FUNDS IN THE HANDS OF THE ASSESSEE ON THE BASIS OF A FUTURE EVEN, WHICH MAY OR MAY NOT OCCUR. 3.2 THE CIT(A)-30 HAS ERRED IN LAW AS ALSO IN THE F ACTS AND CIRCUMSTANCES OF THE CASE TO PRE-DECIDE THE ISSUE AND GIVE HIS ADVAN CE FINDING ON AWARD OF ARBITRATION, WHICH IS CLEARLY A FUTURE EVENT, WHICH MAY TURN OUT TO BE IN THE FAVOUR OF DISFAVOR OF ANY OF THE PARTIES TO THE ARB ITRATION. 4. THE APPELLANT CRAVES LEAVE TO ADD AND ALTER GROU NDS OF APPEAL AT THE TIME OF HEARING. (2) AT THE TIME OF HEARING BEFORE US, LD. COUNSEL F OR ASSESSEE INFORMED THAT THE ASSESSEE DID NOT WISH TO PRESS THIS APPEAL; AND THA T THE ASSESSEE WISHED TO WITHDRAW ITA NO.-4877/DEL/2015. AQUISS PRIVATE LTD. PAGE 3 OF 4 THIS APPEAL. THE LD. COMMISSIONER OF INCOME TAX (DE PARTMENTAL REPRESENTATIVE) DID NOT OBJECT TO WITHDRAWAL OF THE APPEAL BY ASSESSEE. ACCORDINGLY, THE APPEAL IS DISMISSED AS WITHDRAWN AND NOT PRESSED. (3) IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09 TH DAY OF JANUARY, 2019. SD/- SD/- (K.N. CHARY) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 09.01.2019 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.-4877/DEL/2015. AQUISS PRIVATE LTD. PAGE 4 OF 4 DATE OF DICTATION 09/01/19 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 09/01/19 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER