ITA No.1314/Del/2026 [for A.Y 2012-13] Ambassador Building Solutions Pvt. Ltd. v. ITO

Parties Involved

Facts Summary

The assessee company, M/s. Ambassador Building Solutions Pvt. Ltd., is engaged in the business of manufacturing AAC blocks at Paonta Sahib, Himachal Pradesh. The company filed a return for the Assessment Year 2012-13 declaring NIL income. During the year, the company raised and allotted share capital of Rs.61,00,000 with a share premium of Rs.5,49,00,000. The company had received Rs.2,15,00,000 from Kimo Clothing Design Concepts Private Limited, which the Assessing Officer treated as unexplained cash credit under Section 68 and added it to the income of the assessee. The company filed an appeal against this addition, which was dismissed by the ITAT as withdrawn. The Assessing Officer imposed a penalty under Section 271(1)(c) amounting to Rs.69,66,000, being 100% of the tax on the impugned addition. The company appealed against this penalty order to the Commissioner of Income Tax (Appeals), which was dismissed. The company then appealed to the ITAT, which set aside the order of the Commissioner of Income Tax (Appeals) and allowed the appeal.…

Legal Issues

• 1. Whether the impugned order dated 22.08.2025 passed by the Commissioner of Income Tax (Appeals) is in violation of the principles of natural justice?
• 2. Whether the assessee is liable to pay the alleged demand, interest, and penalties levied on the alleged demand?
• 3. Whether the assessee was served with the notice of hearing?
• 4. Whether the order of the National Company Law Tribunal (NCLT) dated 24.12.2021 discharges the assessee from all liabilities towards the department?

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Ms. Sasikala Krishnasamy Vs. The Income Tax Officer, Corporate Ward 5(2), Chennai

• JCIT(OSD), Range-10, New Delhi Vs. Gwalior Bypass Project Ltd

  Delhi Bench benchAY 2016-17Dismissed

• Stargaze Consulting Services Pvt. Ltd. Vs. ITO, Ward-6(3)(1)

• M/s Himachal Fashion Pvt. Ltd. vs. The ITO, Ward 6(3), Ludhiana

  Chandigarh bench

• Sheetal Clothing Company Pvt. Ltd. vs. DCIT, Circle5 (3) (1), Mumbai

• ITA No 208 of 2023 Varsity Education Management P Ltd

  Hyderabad bench