DCIT, CIRCLE-7(1), DELHI vs. ERNST & YOUNG SERVICES PRIVATE LIMITED, DELHI

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ITA 1390/DEL/2025Status: DisposedITAT Delhi20 August 2025AY 2020-213 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal noted that the Learned Departmental Representative (DR) for the Revenue submitted that he had wrongly filed two appeals on the same grounds and wished to withdraw the present appeal as another appeal on the same grounds was pending before the Tribunal. The Learned Authorized Representative (AR) for the assessee had no objection to this request. Consequently, in view of the request made by the Learned DR, the present appeal filed by the Revenue was dismissed as withdrawn. The Tribunal did not adjudicate on the merits of the grounds raised. No specific finding was given on any of the issues, and no ratio decidendi was established. The operative direction was to dismiss the appeal as withdrawn.

What were the facts?

The Revenue, represented by the DCIT Circle-7(1), Delhi, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Delhi Bench 'C', against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, dated January 7, 2025. The appeal pertained to Assessment Year 2020-21 and challenged the NFAC's deletion of additions made by the Assessing Officer (AO). The disputed amounts included Rs. 8,12,41,438 on account of bonus, Rs. 4,75,62,851 on account of GST, Rs. 41,61,849 on account of employer's share of provident fund, and Rs. 892 on account of penalty under Section 37 of the Act. The assessee is Ernst & Young Services Private Limited.

What were the issues?

1. Whether on the facts and circumstances of the case and in law, the NFAC has erred in allowing the appeal of the assessee by deleting the addition made by the AO amounting to Rs. 8,12,41,438 on account of bonus for the year under consideration. 2. Whether on the facts and circumstances of the case and in law, the NFAC has erred in allowing the appeal of the assessee by deleting the addition made by the AO amounting to Rs. 4,75,62,851 on account of GST for the year under consideration. 3. Whether on the facts and circumstances of the case and in law, the NFAC has erred in allowing the appeal of the assessee by deleting the addition made by the AO amounting to Rs. 41,61,849 on account of provident fund (Employer share) for the year under consideration. 4. Whether on the facts and circumstances of the case and in law, the NFAC has erred in allowing the appeal of the assessee by deleting the addition made by the AO amounting to Rs. 892 on account of penalty u/s 37 of the Act. Contentions: Assessee: No specific contentions recorded as the appeal was withdrawn. Revenue: The Revenue contended that the NFAC erred in deleting the additions made by the AO on account of bonus, GST, employer's share of provident fund, and penalty under Section 37.

Which sections of the Income-tax Act were involved?

Section 37

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “C”, DELHI

Before: SH. SUDHIR KUMAR

Hearing: 20/08/2025Pronounced: 20/08/2025

Date of hearing: 20/08/2025 Date of Pronouncement: 20/08/2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal by the revenue is directed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] vide order dated 07.01.2025 pertaining to A.Y. 2020-21.

2.

The revenue has raised the following grounds in appeal:

1.

Whether on the facts and circumstances of the case and in law, the NFAC has erred in allowing the appeal of the assessee by deleting the addition made by the AQ amounting to Rs. 8,12,41,438/-consideration. on account of bonus for the year under

2. Whether on the facts and circumstances of the case and in law, the NFAC has erred in allowing the appeal of the assessee by deleting the addition made by the AO amounting to Rs. 4,75,62,851/- on consideration. account of GST for the year under

3. Whether on the facts and circumstances of the case and in law, the NFAC has erred in allowing the appeal of the assessee by deleting the addition made by the AD amounting to Rs 41,61,849/- on account of provident fund (Employer share) for the year under consideration.

4. Whether on the facts and circumstances of the case and in law, the NFAC has erred in allowing the appeal of the assessee by deleting the addition made by the AO amounting to Rs. 892/- on account of penalty u/s 37 of the Act

5. The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal,

3.

The Ld. DR for the assessee has submitted that he has wrongly filed two appeals on the same grounds. He wants to withdraw the present appeal as the other is pending before Tribunal.

4.

The Ld. AR has no objection.

5.

In view of the request of the Ld. DR the present appeal is dismissed as withdrawn.

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