ACIT CENTRAL CIRCLE-1, GURUGRAM vs. DAKSH TRADEWELL PRIVATE LIMITED, GURUGRAM

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ITA 325/DEL/2023Status: DisposedITAT Delhi06 September 2023AY 2016-17Bench: SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA (Judicial Member)3 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 once substantive additions were confirmed in the hands of Shri Atul Tyagi, the same additions could not be made on a protective basis to the assessee. Therefore, the protective additions made to the assessee were deleted.

What were the facts?

The Revenue filed appeals against the CIT(A)'s order deleting additions made on a protective basis to the assessee. The substantive addition was made in the hands of Shri Atul Tyagi, and the Revenue sought to keep the protective addition alive pending finality of the substantive addition.

What were the issues?

Whether protective additions can be made to an assessee when substantive additions have already been confirmed in another person's hands. The issue also concerns the finality of substantive additions and their impact on protective additions.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘B’, NEW DELHI

Before: SH. N. K. BILLAIYA & SH. ANUBHAV SHARMA

Hearing: 06/09/2023Pronounced: 06/09/2023

Date of hearing: 06/09/2023 Date of Pronouncement: 06/09/2023 ORDER PER N. K. BILLAIYA, AM:

, 323/Del/2023, 324/Del/2023 325/Del/2023 and 326/Del/2023 are five separate appeals by the revenue preferred against the common order of the CIT(A)-3, Gurgaon dated 29.11.2022 pertaining to A.Y. 2013-14 to 2017- 18.

Since the CIT(A) has disposed the appeals by a common order and since common issues are involved, therefore, all these appeals were heard together and are disposed of by this common order for the sake of convenience and brevity.

The common grievance in the captioned appeals read as under :- Whether the Ld. CIT (A) has erred in deleting the addition of (i) Rs.1,99,12,764/- made in the hands of the assessee on protective basis? As the substantive addition made in the hands of Shri Atul (ii) Tyagi for the year under consideration has not attained finality yet, to keep the protective addition made in the hands of assessee alive, the present appeal is being filed. iii) The appellant craves to add, amend, alter or modify any grounds of appeal at the time of hearing.”

The quantum may differ in each appeal.

5. A perusal of the ground itself shows that there is no merit in the present appeals by the revenue. The following findings of the CIT(A) would clear the doubts :-

Addition in the hand of Sh. Atul Tyagi on substantive basis has been already confirmed vide order dated 27.11.2019 u/s.250 of the Act passed by the CIT(A)-3, Gurgaon for AY 2014-15. Once the additions have been made and confirmed in the hands of Sh. Atul Tyagi on substantive basis, it is logical to infer that the same additions cannot be made in the hands of the appellant on protective basis. Accordingly the quantum

additions made in the hands of the appellant are deleted from AY 2011-12 to 2017-18. Ground of appeal no.11-13 and 15 are hereby allowed. Remaining grounds of appeal no.1-10 are not separately adjudicated as the quantum additions have been already deleted.

6. In the light of the above, captioned appeals by the revenue are dismissed. However, in all fairness a liberty is given to the revenue to approach this Tribunal in case the substantive addition is deleted from the hands of Sh. Atul Tyagi.

With the above directions the captioned appeals are dismissed.

Decision announced in the open court on 06.09.2023. 8.

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