DCIT - CC - 3(2), MUMBAI vs. TEXPERT TEXTILES PVT. LTD., MUMBAI

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ITA 577/MUM/2019Status: DisposedITAT Mumbai18 March 2022AY 2011-121 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that a protective addition made in the hands of the assessee is not sustainable if the substantive addition is also not sustainable. Therefore, the addition on account of commission was also not sustainable.

What were the facts?

The Revenue had made protective additions under Section 69C of the Income Tax Act in the hands of the assessee. The substantive addition made in the hands of other entities was accepted by them.

What were the issues?

Whether a protective addition is sustainable when the substantive addition is not sustainable, and whether additions on account of commission are valid in such circumstances.

Which sections of the Income-tax Act were involved?

Section 69C

AI-generated summary — verify with the full judgment below

M/s. Solitaire Texfab & Traders Textiles P. Ltd. and M/s. First Winner Industries Pvt. Ltd. protective addition under section 69C of the Act qua the same amount in the hands of the assessee is not sustainable. Similarly, when protective addition made in the hands of assessee is not sustainable addition on account of commission to the tune of Rs.17,75,000/- is also not sustainable.

10.

During the course of argument the Ld. D.R. for the Revenue stated at bar that the substantive addition made in this case has also been confirmed by the Ld. CIT(A) and thereafter the same has been accepted by M/s. Bhagwat Textiles Pvt. Ltd. and others in whose hands the substantive addition was made.

11.

In view of what has been discussed above, we are of the considered view that finding no illegality or perversity in the impugned order passed by the Ld. CIT(A) present appeal filed by the Revenue is hereby dismissed.

Order pronounced in the open court on 18.03.2022.

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