AQUISS PVT. LTD.,NEW DELHI vs. ACIT, NEW DELHI

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ITA 4877/DEL/2015Status: DisposedITAT Delhi09 January 2019AY 2011-124 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 assessee informed the tribunal that it did not wish to press the appeal and wanted to withdraw it. The revenue representative did not object to the withdrawal.

What were the facts?

The assessee company appealed against the CIT(A)'s order which held it as a bogus/shell company providing accommodation entries. The CIT(A) also treated funds advanced as 'advance against land purchase' as accommodation entry.

What were the issues?

Whether the assessee is a bogus/shell company and if funds advanced were accommodation entries. The CIT(A) also made an advance finding on a future arbitration award.

Which sections of the Income-tax Act were involved?

Section 153C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘F’: NEW DELHI

Before: SHRI K.N. CHARY & SHRI ANADEE NATH MISSHRA

For Appellant: Shri Amol Sinha, Adv. and Shri. Ashvini Kumar, Adv

This appeal by the Assessee is filed against the order of Learned Commissioner of Income Tax (Appeals)-30, New Delhi-110055, dated 19.03.2015 for Assessment Year 2011-12. The grounds of appeal are as under:

1. The CIT(A)-30 has erred in law as also in the facts and circumstances of the case to hold the assessee company as a bogus /shell /paper/ conduit Page 1 of 4

ITA No.-4877/Del/2015. Aquiss Private Ltd.

/dummy company created for providing accommodation entries whereas the assessee company is being assessed regularly for the last two decades and the Income Tax Department has been accepting it as a genuine company, and in no assessment other than the present assessment, the Department has ever alleged it of giving any accommodation entries.

2.

The CIT(A) -30 has erred in law as also in the facts and circumstances of the case to hold the funds advanced as ‘advance against land purchase’ as accommodation entry, when the source of these funds in the hands of the assessee company has duly been accepted by the Income Tax Department in the assessments completed u/s 153C of the Income Tax Act, 1961 on 28.03.2013.

3.

The CIT(A)-30 has erred in law as also in the facts and circumstances of the case to hold that amount, if any, received on finalization of arbitration award would be taxed in the hands of the assessee “ as pr provision of law”, when there is no provision of law, as such, which may enable the Department to tax the refund back of one’s own money.

3.1 The direction of Ld. CIT(Appeals) that the award, if decided in favour of the assessee, would be taxed in the hands of the assessee, is self contradictory, since at one hand, he gives a clear cut-finding that MOU is a colourable device and that the funds belong to BPTP group companies and in the same breath, he talks of taxing the same funds in the hands of the assessee on the basis of a future even, which may or may not occur.

3.2 The CIT(A)-30 has erred in law as also in the facts and circumstances of the case to pre-decide the issue and give his advance finding on award of arbitration, which is clearly a future event, which may turn out to be in the favour of disfavor of any of the parties to the arbitration.

4.

The appellant craves leave to add and alter grounds of appeal at the time of hearing.”

(2) At the time of hearing before us, Ld. Counsel for Assessee informed that the assessee did not wish to press this appeal; and that the assessee wished to withdraw Page 2 of 4

ITA No.-4877/Del/2015. Aquiss Private Ltd. this appeal. The Ld. Commissioner of Income Tax (Departmental Representative) did not object to withdrawal of the appeal by assessee. Accordingly, the appeal is dismissed as withdrawn and not pressed.

(3) In the result, appeal of the assessee is dismissed.

Order pronounced in the open court on 09th day of January, 2019.

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