SWATI HEALTH AND EDUCATION SERVICES P.LTD,DELHI vs. DCIT, NOIDA

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ITA 651/DEL/2022Status: DisposedITAT Delhi24 February 2023AY 2009-103 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that due to the admission of the assessee company into insolvency proceedings and the consequent moratorium, the present appeal is infructuous. Therefore, the appeal is dismissed.

What were the facts?

The assessee filed its return of income and subsequently a search operation was conducted. The Assessing Officer made substantial additions to the income. The assessee's company has been admitted for insolvency proceedings under the IBC, leading to a moratorium.

What were the issues?

Whether the appeal is maintainable in light of the insolvency proceedings and moratorium under the IBC. Whether additions made by the AO were beyond the scope of Section 153A and contrary to Section 153D.

Which sections of the Income-tax Act were involved?

Section 132,Section 153A,Section 153D

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHIBENCH ‘G’, NEW DELHI

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

Hearing: 21.02.2023Pronounced: 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 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 Swati Health & Education Services Pvt. Ltd. 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.

Swati Health & Education Services Pvt. Ltd. 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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