KRAYON MARKETING PRIVATE LIMITED,DELHI V. ACIT, CIRCLE-14(2), DELHI

ITA 890/DEL/2024

AI Insights

Krayon Marketing Pvt. Ltd. filed an appeal against the order of the Commissioner of Income Tax (Appeals)-31, New Delhi, concerning the Assessment Year 2011-12. The primary issues in the appeal included the legality of the reopening of the assessment under section 147 of the Income Tax Act, the timing of the provision of reasons for reopening, the nexus between the information from the Investigation Wing and the appellant, and the addition made under section 68 regarding unexplained cash credits. The assessee's representative, during the hearing, indicated the decision to withdraw the appeal following the application of the Vivad Se Vishwas Scheme, 2024, which aims to resolve pending tax disputes.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 27103 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 21-11-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 26-02-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: OM PARKASH
• Assessee Lawyers: SAMEER MALHOTRA
• Keywords: Reopening of assessment; Principle of natural justice; Competent authority; Reason to believe
• Section: 147; 68

Judgement Text

" ITA No.- 890/Del/2024 Krayon Marketing Pvt. Ltd. Page 1 of 5 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘C’: NEW DELHI) BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No:- 890/Del/2024 (Assessment Year- 2011-12) M/s Krayon Marketing Pvt. Ltd., Delhi. Vs. The ACIT, Circle 14(2), Delhi. PAN No: AADCK1050E APPELLANT RESPONDENT Assessee by : Shri Sameer Malhotra, CA Revenue by : Shri Om Parkash, Sr. DR Date of Hearing : 21.11.2024 Date of Pronouncement : 21.11.2024 ORDER PER SUDHIR PAREEK, JM The instant appeal has been preferred by the assessee against the order of learned Commissioner of Income Tax (Appeals)-31, New Delhi-110055 (hereinafter referred to as the ‘Ld. CIT(A)’, in short), dated 05.01.2024 for Assessment Year 2011-12. ITA No.- 890/Del/2024 Krayon Marketing Pvt. Ltd. Page 2 of 5 1.1 The assessee has raised the following grounds of appeal: “1.) THAT learned Assessing Officer failed to appreciate that there existed no Reason to Believe and only Reasons to Suspect for reopening of assessment under section 147 of the Act and hence, the entire proceedings are ex-facie bad in law. 2.) BECAUSE the appellant was not provided with the Reasons to Believe at the time of issue of Notice under section 148, rather, at a much later stage in the course of proceedings. 3.) BECAUSE learned Assessing Officer failed to prove the nexus between information received from Investigation Wing and the appellant and also failed to substantiate the enquiries and investigations made by Ld. AO, relevant to the appellant, before forming of Reason to Believe for reopening of assessment. 4.) BECAUSE learned Assessing Officer failed to appreciate the fact that transaction under review was entered much after the alleged search operation was conducted by Investigation Win g on the Lender and thus, the outcomes of said search operation bore Nil significance to the case of appellant. 5.) BECAUSE the learned Assessing Officer was not justified either on facts or in law to compute the income of the appellant at Rs. 30,00,000/- by making an addition under section 68 of the Income Tax Act and in subjecting the appellant to a tax demand of Rs. 19,75,310/- on that basis. 6.) BECAUSE Ld. AO failed to highlight deficiencies in the submissions of the appellant mad e to justify the creditworthiness of the lender and hence, no addition could be made under Section 68 of the Act. 7.) BECAUSE Ld. AO failed to pass a speaking order in which the neither of the submissions, assertions and documents brought on records by the appellant were rebutted nor commented upon before passing an adverse order. 8.) BECAUSE the order appealed against is contrary to the facts, law and principles of natural justice. The appellant craves leave to add to alter, amend or delete above grounds of appeal.” ITA No.- 890/Del/2024 Krayon Marketing Pvt. Ltd. Page 3 of 5 2. We have heard the Ld. Representative of both the parties and perused the material available on record. 3. When the matter was called for hearing, the Ld. AR for the assessee submitted an application under the Vivad se Vishwas Scheme, 2024. The Ld. AR further stated that the assessee does not wish to pursue the present appeal due to the exercise of the option for availing of the VSV Scheme and, consequently, requested that the written application for withdrawal of the appeal be granted. 4. The Ld. Sr. DR for the Revenue stated that he has no objection to withdraw the appeal as sought on behalf of the assessee. 5. In view of above fact, since the assessee has availed the benefit under Vivad Se Vishwas Scheme, 2024 to settle the matters, therefore, the appeal of the assessee stands disposed of in terms thereof, subject to approval of the same by the competent authority. If at any stage the assessee finds that its declarations are not accepted by Department, the assessee is given liberty to recall this order. Appeal of the assessee is accordingly disposed of. ITA No.- 890/Del/2024 Krayon Marketing Pvt. Ltd. Page 4 of 5 6. In the result, appeal of the assessee is dismissed as withdrawn. Order pronounced in the Open Court on 21.11.2024 Sd/- Sd/- (PRADIP KUMAR KEDIA) (SUDHIR PAREEK) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 21/11/2024. Pooja/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA No.- 890/Del/2024 Krayon Marketing Pvt. Ltd. Page 5 of 5 Date of dictation Date on which the typed draft is placed before the dictating Member 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 "