Case Law Details
ACIT Vs Zodiac Transport Co. Pvt. Ltd. (ITAT Delhi)
In this case learned Commissioner (Appeals) had directed assessing officer to make the additions at the hands of the assessee on protective basis, since, according to him, substantive additions have to be made at the hands of the real beneficiaries i.e. the SVP Group entities. This is so because, according to learned Commissioner (Appeals), assessee is used as a mere conduit to facilitate transfer of money between the first layer of 85 companies used for parking on-money of the five flagship entities of SVP Group who are the real masterminds and running the entire show. It is also relevant to observe, assessing officer while making the additions at the hands of the assessee has accepted existence of the assessee company. He has also accepted the identity of the investors, except, for the cash source. The assessing officer has also held that the assessee has acted as a conduit channel. It has been brought to our notice by the learned Departmental Representative that, in the meanwhile, the Tribunal has decided the appeals of SVP Group entities in ITA No.4238/Del/2012 & Ors. dated 29.04.2014. A perusal of the aforesaid order of the co-ordinate Bench reveals that the Tribunal has granted partial relief while deciding the appeals. This being the factual position, to what extent the aforesaid decision of the Tribunal in case of SVP Group entities would influence the protective additions made at the hands of the assessee to make them substantive, needs to be examined. Therefore, due to the changed scenario because of the decision of the coordinate Bench in the case of SVP Group entities, referred to above, the issues arising in these appeals are restored back to the assessing officer for fresh adjudication. The assessing officer must analyze the order of the co-ordinate Bench in case of SVP Group entities (supra), to find out to what extent the substantive additions made at the hands of the SVP Group entities corresponding to the protective additions made at the hands of the present assessee have been reduced and accordingly proceed to make additions if warranted, on substantive basis at the hands of the present assessee. Needless to mention, before deciding the issues, assessing officer must extend reasonable opportunity of being heard to the assessee.
FULL TEXT OF THE ORDER OF ITAT DELHI
This Bunch of nine appeals, seven by assessee and two by Revenue, arise out of separate orders of learned Commissioner of Income-Tax (Appeals), Meerut, pertaining to assessment years 2003-04, 2004-05, 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10. While the appeals for assessment years 200304, 2004-05, 2005-06, 2006-07 and 2009-10 are only by the assessee, for assessment years 2007-08 and 2008-09, both assessee and revenue are in appeal.
2. The common grounds raised by assessee in all its appeals read as under:
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