ITO, New Delhi V. M/s. Nipun Auto Pvt. Ltd., New Delhi

ITA 1493/DEL/2012

• Counselvise Citation: 149320114 RSA 2012
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 11-10-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 30-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AROOP KR SINGH
• Assessee Lawyers: VARUN KOHLI
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: E NEW DELHI BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI RAJPAL YADAV, JUDICIAL MEMBER ITA NO: 1493/DEL/2012 ASSESSMENT YEAR : - 2006-07 ITO, WARD 13(3) VS. M/S NIPUN AUTO P.LTD. NEW DELHI C/O M/S KOHLI & ASSOCIATES 2501/8, GURU CHAMBERS BEADON PURA, KAROL BAGH NEW DELHI 5 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AROOP KR.SINGH, SR.D.R. RESPONDENT BY : SHRI VARUN KOHLI, C.A. O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD.CIT(A)-XVI, NEW DELHI DATED 26.10.2011 FOR THE ASSESSMENT YEAR 2006-07. 2. FACTS IN BRIEF:- THE ASSESSEE IS A COMPANY AND WAS INCORPORATED ON 21.9.2004. THIS IS THE FIRST YEAR AND THE ASSESS EE FILED ITS RETURN OF INCOME ON 31.3.2007. THE ASSESSING OFFICER MADE AN ADDITION ON ACCOUNT OF SHARE APPLICATION MONEY AS WELL AS ON AC COUNT OF CASH CREDITS. ON APPEAL THE FIRST APPELLATE AUTHORITY GAVE A FIND ING THAT ALL THE SHARE APPLICATION MONEY IS RECEIVED FROM TWO COMPANIES. HE FURTHER RECORDED THAT THE ASSESSEE HAS FILED CONFIRMATIONS AND COPIE S OF INCOME TAX RETURNS OF THESE TWO COMPANIES. HE HELD THAT THE E XISTENCE OF THE 2 COMPANIES ARE PROVED. THEREAFTER HE REFERRED TO TH E DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. OSS HOSPITA LS PVT.LTD, CIT VS. FINLEASING AND FINANCE LTD. 219 ITR 268 (DELHI), CI T VS. LOVELY EXPORTS P.LTD. 216 CTR 195 AND DELETED THE ADDITION ON THE ISSUE OF ADDITION OF UNSECURED LOANS. THE FIRST APPELLATE AUTHORITY OBS ERVED THAT THE UNSECURED LOANS WERE RAISED FROM THE DIRECTORS OF T HE COMPANY FROM ALOK AGGARWAL AND SMT. SADHNA AGGARWAL. BOTH THE D IRECTORS APPEARED IN RESPONSE TO SUMMONS AND FILED COPIES OF THEIR IN COME TAX RETURNS FOR THE ASSESSMENT YEAR 2005-06 AND 2006-07. THE COMMI SSIONER OF INCOME TAX (APPEALS) DELETED THE ADDITION OF THE AM OUNT GIVEN BY SHRI ALOK AGGARWAL BUT CONFIRMED THE ADDITION OF THE LOA N GIVEN BY SMT.SADHNA AGARWAL. AGGRIEVED THE REVENUE IS IN AP PEAL BEFORE US. 3. WE HAVE HEARD MR.AROOP KUMAR SINGH, LD.SR.D.R. A ND SHRI VARUN KOHLI, COUNSEL FOR THE ASSESSEE. BOTH THE PARTIES RELIED ON A NUMBER OF CASE LAWS IN SUPPORT OF THEIR CONTENTIONS. ON A CA REFUL CONSIDERATION OF ALL THESE SUBMISSIONS AND CASE LAWS, WE UPHOLD THE FINDING OF THE COMMISSIONER OF INCOME TAX (APPEALS) ON THE ISSUE O F ADDITION MADE ON SHARE APPLICATION MONEY RECEIVED, FOR THE REASON TH AT THE ASSESSEE HAS FURNISHED CONFIRMATION LETTERS, COPIES OF INCOME TA X RETURNS ETC. TO PROVE THE EXISTENCE OF THE COMPANIES. THE BANK STATEMENT S OF THESE SHARE APPLICANT COMPANIES WERE ALSO FILED. UNDER THESE C IRCUMSTANCES, WHEN 3 THE REVENUE HAS NO CONTRARY EVIDENCE, THE FIRST APP ELLATE AUTHORITY WAS RIGHT IN DELETING THE ADDITION. 4. COMING TO THE ADDITION MADE UNDER SECTION 68 OF THE INCOME TAX ACT, 1961, THE FIRST APPELLATE AUTHORITY DELETED TH E ADDITION MADE BEING LOAN RECEIVED FROM SHRI ALOK AGGARWAL TO THE DIRECT OR OF THE ASSESSEE COMPANY. THE FIRST APPELLATE AUTHORITY CAME TO A CONCLUSION THAT IN THE CASE OF SHRI ALOK AGGARWAL THE IDENTITY, GENUINENES S AND CREDIT WORTHINESS HAVE BEEN PROVED. THE COMMISSIONER OF I NCOME TAX (APPEALS) CALLED FOR A REMAND REPORT BASED ON THE M ATERIAL FURNISHED BEFORE HIM BY THE ASSESSEE. AFTER CONSIDERING THE MATERIAL THE COMMISSIONER OF INCOME TAX (APPEALS) CAME TO A CONC LUSION THAT THE CREDIT WORTHINESS OF SHRI ASHOK AGGARWAL CANNOT BE DOUBTED. THE CREDIT WORTHINESS OF SMT.SADHNA AGGARWAL HAS NOT BEEN PROV ED. MR.ALOK AGGARWAL HAS DISCLOSED CAPITAL GAINS FROM SALE OF L AND. AS NOTHING CONTRARY IS BROUGHT TO OUR NOTICE, WE FIND NO REASO N TO INTERFERE IN THIS ORDER OF THE FIRST APPELLATE AUTHORITY. IN THE RES ULT THIS GROUND OF APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, THE APPEAL BY THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH OCTOBER, 2012. SD/- SD/- (RAJPAL YADAV) (J.SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: THE 30 TH OCTOBER, 2012 4 *MANGA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT (A); 5.DR; 6.GUARD FILE BY ORDER DY. REGISTRAR