ACIT, CENTRAL CIRCLE- 13, NEW DELHI vs. ELECTRICAL & ELECTRONICS INDIA LTD., KOLKATA

Per Dr. B. R. R. Kumar, Accountant Member:

3. The AO made an addition on protective basis in the hands of the assessee company and the addition has been made on substantive basis in JP Minda Group Companies (AO para 11.2).

4. The protective addition has been deleted by the ld CIT(A).

“BEFORE THE HON'BLE MEMBERS INCOME TAX APPELLATE TRIBUNAL B-BENCH, NEW DELHI In the case of : Electrical & Electronics India Pvt. Ltd. Appeal No. : 769, 770 & 771/DEL/2018 Asstt. Year : 2010-11, 2011-12 & 2012-13 Date of hearing :10/04/2023 MAY IT PLEASE YOUR HONOURS Sub: Brief written Submission in the above case for 3 A.YS. - reg. It is to submit that, as requested the case has been briefly adjourned from 05/04/23 to 10/04/2023 for the above mentioned three A.Ys, Brief written submission is hereby made on the following issues as under. 1) Deletion of the protective basis additionby Ld CIT(A) simply following appeal order in other JP Minda group companies.

2) As directed by Hon'ble Bench, Comments on application made by assessee under rule 27 of the ITAT Rulessubmitted on 3 to 771/Del/2018 Electrical & Electronics India Ltd 02/03/2023 3) Comments given by AO with regard to assesses application under rule 27 of ITAT rules may be taken into consideration. With regard to Para-1 above. (Protective assessment deleted by CIT(A) for 3 A.Ys.) In this regard is to submit that, the Ld CIT(A) in his order has not appreciated nor considered any of the facts and reasonings recorded by the AO in the Assessment order. The Ld CIT(A) simply accepted the explanations given by the assessee. The protective assessment is deleted without giving any finding of his own but by simply following an order of other group company of JP Minda which is reproduced in page.21-24 of Ld CIT(A) order (same for each of the for 3 A.Ys.) Itis to submit that, the order of the Ld CIT(A) is against the finding of AO as written after proper investigation and reasoning in the Assessment Order Page. 35 to 39 ( para 9,10,10.1,11, 11.1 and 11.2- for each of the 3 A.Ys) Further, The Ld CIT(A) has not even mentioned about the status of substantive assessment while deleting the protective assessment because protective assessment becomes alive if in case the substantive basis addition is deleted. Hence, due to the reasons explained, the order of the Ld CIT(A) is wrong and not accepted by the revenue and accordingly it is requested to be quashed. The Revenue fully relies on the Order passed by the AO and the same may kindly be restored. For the sake of repetition it is also submitted that, if in case the substantive basis addition is deleted the protective basis assessment comes alive.”

4 to 771/Del/2018 Electrical & Electronics India Ltd 9. Since, the substantive additions have been deleted on merits and no observation has been given that the substantive additions were deleted owing to the fact that the addition made on protective basis in the hands of the assessee company and since the assessee company has not been held to be the right assessee wherein, the substantive additions were supposed to be made by any of the authorities viz. ld. CIT(A), co-ordinate bench ITAT, Hon’ble High Court, we hereby affirm the order of the ld CIT(A)

Order Pronounced in the Open Court on 18/04/2023.