M/S. NATIONAL TRAVEL SERVICE,NEW DELHI vs. ACIT, CIRCLE-24(1), NEW DELHI

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ITA 5291/DEL/2017Status: DisposedITAT Delhi24 February 2023AY 2007-082 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal confirmed the addition made by the Assessing Officer and upheld by the CIT(A). This decision was based on the jurisdictional High Court's order in the assessee's own case, which had not been reversed.

What were the facts?

The assessee, a partnership firm, declared Nil income. The Assessing Officer made an addition of Rs. 85,29,000/- on account of deemed dividend under Section 2(22)(e). The CIT(A) confirmed this addition.

What were the issues?

Whether the payment received by the assessee firm from a concern in which its partners had substantial interest constitutes a deemed dividend under Section 2(22)(e) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 2(22)(e)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI

Before: Dr. B. R. R. KumarSh. Yogesh Kumar US

Hearing: 05.12.2022Pronounced: 24.02.2023

Per Dr. B. R. R. Kumar, Accountant Member:

1.

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 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 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.

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