DCIT, NEW DELHI vs. M/S. VERTEX CUSTOMER MANAGEMENT INDIA LTD., GURGAON

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ITA 6692/DEL/2015Status: DisposedITAT Delhi03 October 2018AY 2011-124 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 noted that a previous order for the same assessment year had quashed the impugned assessment order. Therefore, the current appeal by the Revenue was rendered infructuous.

What were the facts?

The Revenue appealed against an assessment order that reduced an addition for international transactions. The assessee argued that the assessment order was a nullity as it was framed on a non-existent company.

What were the issues?

Whether an assessment order framed on a non-existent company is a nullity in the eyes of law and renders the appeal infructuous.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘I-2’ NEW DELHI

Before: SHRI BHAVNESH SAINI & SHRI L.P. SAHU

For Respondent: Ms. Anchal Khandelwal, Sr. DR
Hearing: 01.10.2018Pronounced: 03.10.2018

ORDER PER SHRI BHAVNESH SAINI, J.M.

This appeal by Revenue has been directed against the assessment order dated 23.10.2015 passed u/s 143(3)/144C of the I.T. Act by DCIT, Circle 26(1), New Delhi, passed in pursuance to the directions of DRP-2, New Delhi dated 21.09.2015 on the following grounds:

1. “On the facts and in the circumstances of the case, the DRP-2 erred in directing AO to complete the assessments as per observation made by DRP in the order which resulting in reduction of the addition to Rs. 16,88,88,296/- for the international transactions undertaken the assessee company with its associates/parent enterprises.

2. On the facts and in the circumstances of the case, the DRP has erred in directing the AO/TPO to exclude below mentioned comparable from the final list of comparables as: i. Accentia Technologies Ltd. ii. Eclerx Services Ltd. iii. Infosys BPO Ltd. iv. TCS E-Serve Ltd. 3. The appellant craves, leave or reserving the right to amend modify, alter, add or forego any grounds of appeal at any time before or during the hearing of this appeal.”

2.

Ld. Counsel for the assessee at the outset, submitted that the Tribunal while deciding the appeal of the assessee for same AY 2011-12 in vide order dated 06.07.2018 has quashed the impugned assessment order dated 23.10.2015. Copy of the order of the Tribunal is placed on record, in which the Tribunal observed that since in this case assessment has been framed on a non-existent company, therefore, it was held that such assessment is a nullity in the eyes of law, therefore, the same was quashed. Copy of the order is provided to the Ld. DR, who did not dispute the same.

3.

Considering the above facts, in the light of the order of the Tribunal dated 06.07.2018 in the case of the assessee quashing the impugned assessment order being nullity, the departmental appeal stands infructuous and is accordingly dismissed.

4.

In the result, the departmental appeal is dismissed.

Order pronounced in the open court.

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