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| The Tax Publishers2019 TaxPub(DT) 1592 (Del-Trib) INCOME TAX ACT, 19612
Section 143(3)
Since addition made by AO in the hands of assessee had already been taxed in the hands of its holding company, therefore, addition was totally illegal and accordingly, the assessment order was illegal to this extent.
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Assessment - Addition of income - Assessment of holding and subsidiary company -
Assessee-company was engaged in the business of retail activity with respect to branded footwear/apparels and accessories and leather goods. Necessary details and information as called for have been filed by assessee. After perusing the same the AO made various additions and assessed the income of assessee by completing the assessment under section 143(3). Assessee appealed before CIT(A) who dismissed the appeal. Held: Since addition made by AO in the hands of assessee had already been taxed in the hands of its holding company, therefore, addition was totally illegal and accordingly, the assessment order was illegal to this extent in light of decision in case of Laxmipat Singhania v. CIT, (1969) 72 ITR 291 (SC) : 1969 TaxPub(DT) 167 (SC).
Followed:National Thermal Power Company Ltd. v. CIT (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 342 (SC) and Laxmipat Singhania v. CIT, Uttar Pradesh (1969) 72 ITR 291 (SC) : 1969 TaxPub(DT) 167 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, NEW DELHI BENCH
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