Commissioner of Income-tax-6 v. Morgan Exim Pvt. Ltd - 2015-LL-0422-51

Citation	2015-LL-0422-51
Appellant Name	Commissioner of Income-tax-6
Respondent Name	Morgan Exim Pvt. Ltd.
Court	HIGH COURT OF DELHI AT NEW DELHI
Relevant Act	Income-tax
Date of Order	22/04/2015
Assessment Year	2009-10
Judgment	View Judgment
Keyword Tags	substantial question of law
Bot Summary:	The revenue is aggrieved by the order of the ITAT dated 22.8.2014 whereby its appeal was rejected involving the question of deletion of amounts made by the AO under Section 2(22)(e). It urges that it is contrary to law and liable to be set aside. The assessee - a private limited company engaged in investments, shares and securities - did not carry on activities during the current assessment year 2009-2010. The AO found that M/s Morgan Credits Pvt. Ltd. had discharged the assessee company s liability by leading its loan to HDFC Ltd. One Ms. Rakhi Kapoor and M/s Morgan Credits Pvt. Ltd. owning 90 and 45 respectively. The CIT(Appeals) accepted the assessee s contention as to the inapplicability under Section 2(22)(e). We notice that the ITAT in affirming the CIT(Appeals) s order relied upon previous Division Bench s ruling in CIT V. Ankitech Pvt. Ltd. 340 ITR 14. The ITAT also relied upon CIT v. Navyug Promoters Pvt. Ltd 203 Taxman 618 which had followed and applied Ankitech Pvt. Ltd. In the light of these circumstances, this Court is of the opinion that no substantial question of law arises.

IN HIGH COURT OF DELHI AT NEW DELHI ITA 249/2015 COMMISSIONER OF INCOME TAX -6.Appellant Through Mr. Kamal Sawhney, sr. standing counsel with Mr. Shekhar Garg and Mr. Mukul Mathur, Advs. versus MS MORGAN EXIM PVT. LTD.Respondent Through None CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE R.K.GAUBA ORDER % 22.04.2015 1. revenue is aggrieved by order of ITAT dated 22.8.2014 whereby its appeal was rejected involving question of deletion of amounts made by AO under Section 2(22)(e). It urges that it is contrary to law and liable to be set aside. 2. assessee - private limited company engaged in investments, shares and securities - did not carry on activities during current assessment year 2009-2010. AO found that M/s Morgan Credits Pvt. Ltd. had discharged assessee company s liability by leading its loan to HDFC Ltd. One Ms. Rakhi Kapoor and M/s Morgan Credits Pvt. Ltd. owning 90% and 45% respectively. AO held that since she was major shareholder amount had to be added back. CIT(Appeals) accepted assessee s contention as to inapplicability under Section 2(22)(e). 3. We notice that ITAT in affirming CIT(Appeals) s order relied upon previous Division Bench s ruling in CIT V. Ankitech Pvt. Ltd. (ITA No.462/2009 decided on 11.5.2011) 340 ITR 14 (Del). ITAT also relied upon CIT v. Navyug Promoters Pvt. Ltd (2011) 203 Taxman 618 (Del) which had followed and applied Ankitech Pvt. Ltd. (supra). In light of these circumstances, this Court is of opinion that no substantial question of law arises. 4. appeal is dismissed. S. RAVINDRA BHAT, J R.K.GAUBA, J APRIL 22, 2015 Commissioner of Income-tax-6 v. Morgan Exim Pvt. Ltd

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