Swati Health and Education Services P.Ltd, Delhi V. DCIT, Noida

ITA 651/DEL/2022

AI Insights

The case involves Swati Health & Education Services P. Ltd., which appealed against the order of the CIT(A)-4, Kanpur, concerning several additions made by the assessing officer related to share application money, loans, and sundry creditors under section 153A of the Income Tax Act, 1961. The primary contention was that these additions were beyond the jurisdiction of section 153A. However, the appeal was rendered infructuous due to an ongoing moratorium under the Insolvency and Bankruptcy Code, 2016, as the company was undergoing insolvency proceedings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131861 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 20-02-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 11-04-2022
• Laws Referred To: Income Tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ISWAR CH. MOHAPATRA
• Section: 153A

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL DELHIBENCH ‘G’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 651/Del/2022 : Asstt. Year: 2009-10 Swati Health & Education Services P. Ltd., D-14, 2 nd Floor, Preet Vihar, Delhi-110092 Vs. DCIT, Central Circle, Noida (APPELLANT) (RESPONDENT) PAN No. AAJCS7569L Assessee by : Sh. Iswar Ch. Mohapatra, Adv. Revenue by : Sh. H. K. Choudhary, CIT-DR Date of Hearing: 21.02.2023 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 the ld. CIT(A)-4, Kanpur dated 14.02.2022. 2. The assessee has raised the following grounds of appeal: “1. On the facts and circumstances of the case and in law, the CIT(A) erred in confirming addition of Rs. 40,50,000/- on account of share application money. 2. On the facts and circumstances of the case and in law, the addition of Rs. 69,50,000/- made by assessing officer on account of share application money is beyond the scope/jurisdiction of the provisions of section 153A of the Income Tax Act, 1961 and CIT(A) erred in not holding so. 3. On the facts and circumstances of the case and in law, the addition of Rs. 4,72,55,180/- made by assessing officer on account of addition of loans is beyond the ITA No. 651/Del/2022 Swati Health & Education Services Pvt. Ltd. 2 scope/jurisdiction of the provisions of section 153A of the Income Tax Act, 1961 and CIT(A) erred in not holding so. 4. On the facts and circumstances of the case and in law, the addition of Rs. 1.43.22.500/- made by assessing officer on account of sundry creditors is beyond the scope/jurisdiction of the provisions of section 153A of the Income Tax Act, 1961 and CIT(A) erred in not holding so. 5. On the facts and circumstances of the case and in law, the assessment order passes by the assessing officer is contrary to provisions of sections 153D of the Income Tax Act, 1961 and CIT(A) erred in not holding so.” 3. The assessee filed return of income on 30.09.2009 declaring total income of Rs. NIL. A search & seizure operation u/s 132 of the Income Tax Act, 1961 was conducted on 11.11.2014 on the premises of the assessee comprising Tirupati-Sunworld Group of Companies (TSGC). The assessee company is engaged in the business of pharmaceutical manufacturing, formulation in tablets, capsules, oral powder, oral liquids, manufacturing of cylinders. The Assessing Officer completed the assessment by making an addition of Rs.6,85,27,680/-. 4. The matter has reached the NCLT, Principal Bench, New Delhi in IB-1035(PB)/2020 wherein the Tribunal has admitted the application in terms of Section 7 of Insolvency and Bankruptcy (IBC), 2016 moratorium as envisaged under the provisions of Section 14(1) of IBC. Hence, the present appeal is liable to be dismissed as infructuous. ITA No. 651/Del/2022 Swati Health & Education Services Pvt. Ltd. 3 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/AK, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR