M/s. National Travel Service, New Delhi V. ACIT, Circle-24(1), New Delhi

ITA 5291/DEL/2017

AI Insights

M/s National Travel Service, a partnership firm acting as General Sales Agents for certain airlines, filed an appeal against the order of the CIT(A)-31, New Delhi, which confirmed the addition of Rs. 85,29,000 to their income. This addition was initially made by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961, categorizing it as deemed dividend under Section 2(22)(e). The CIT(A)'s decision was based on precedents set by the Delhi High Court in earlier cases involving the same assessee. The Tribunal, referencing these precedents, dismissed the appeal, affirming the lower authorities' decisions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 116336 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 04-12-2022
• Assessment Year: 2007-2008
• Appeal Filed On: 15-08-2017
• Other Referred Cases: ITA No. 223 of 2010, ITA No. 219 of 2010, ITA No. 204 of 2010, ITA No. 309 of 2010
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Deemed dividend
• Section: 143(3); 2(22)(e)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 5291/Del/2017 : Asstt. Year : 2007-08 M/s National Travel Service, 2, Jetair House, 13, Community Centre, Yusuf Sarai, New Delhi-110049 Vs ACIT, Circle-24(1), New Delhi (APPELLANT) (RESPONDENT) PAN No. AAAFN2055Q Assessee by : None Revenue by : Sh. Atiq Ahmad, Sr. DR Date of Hearing: 05.12.2022 Date of Pronouncement: 24.02.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of ld. CIT(A)-31, New Delhi dated 25.05.2017. 2. Following grounds have been raised by the assessee: “1. That the order of the ld. Commissioner of Income Tax (Appeals)-31, New Delhi [hereinafter referred to as “Ld. CIT(A)] is bad in law and is arbitrary in the facts and circumstances of the case. 2. That the ld. CIT(A) erred in law and in facts and circumstances of the case in confirming the addition of Rs.85,29,000/- made by the Assessing Officer by invoking the provisions of Section 2(22)(e) of the Income Tax Act, 1961.” 3. Suffice it to mention that the assessee is a partnership firm engaged in the business of General Sales Agents (GSA) for certain airlines. The assessee filed return of income on ITA No. 5291/Del/2017 National Travel Service 2 31.01.2007 declaring total income at Nil. The case was selected for scrutiny and the assessment was completed u/s 143(3) vide order dated 21.12.2012 by the AO, at an income of Rs.85,29,000/- by making the addition of equal amount to the total income on account of deemed dividend u/s 2(22)(e). 4. Aggrieved, the assessee filed appeal before the ld. CIT(A) who confirmed the order of the Assessing Officer based on the judgment of the Hon’ble jurisdictional High Court of Delhi in assessee’s own case in ITA No. 223 of 2010, ITA No. 219 of 2010, 204 of 2010 and 309 of 2010 vide order dated 11.07.2011. We find that the said order has been inforce till today and has not been reversed/ modified by any other order. Hence, we decline to interfere with the order of the ld. CIT(A). 5. In the result, the appeal of the assessee is dismissed. Order Pronounced in the Open Court on 24/02/2023. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 24/02/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR