Income Tax Officer Ward-1(1), Nagpur V. M/s. ASJ Infrastructure Private Limited, Nagpur

ITA 200/NAG/2009

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3870 (ITAT-NAGPUR)
• Duration Of Justice: 3 year(s) 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-10-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 01-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY MARATHE
• Assessee Lawyers: A C BAWANE

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR , BENCH , ( E - COURT), MUMBAI , BEFORE SHRI R.K.GUPTA , J M & SHRI D.KARUNA KAR RAO , A M ITA NO. 2 00 / N AG / 20 09 ( ASSESSMENT YEAR :2006 - 2007 ) ITO WARD - 1(1), ROOM NO.507, 5 TH FLOOR, MECL BLDG., SEMINARY HILLS, NAGPUR - 6 VS. M/S ASJ INFRASTRUCTURE PVT. LTD. 85, YASHWANT STADIUM NAGPUR. PAN/GIR NO. : A AECA 2588 C ( APPELLANT ) .. ( RESPONDENT ) /REVENUE BY : MR. ABHAY MARATHE /ASSESSEE BY : MR. A.C.BAWANE DATE OF HEARING : 5 TH MARC H ., 201 3 DATE OF PRONOUNCEMENT : 3 RD APRIL ,201 3 O R D E R P ER SHRI R.K.G UPTA, JM : TH E DEPARTMENT HAS PREFERRED THIS APPEAL BEFORE THE ITAT NAGPUR BENCH, NAGPUR, AGAINST THE ORDER DATED 25 - 6 - 2008 OF LEANED CIT(A) - I , NAGPU R (MAHARASHTRA) RELA TING TO THE ASSESSMENT YEAR 200 6 - 0 7 , WHICH HAS BEEN HEARD THROUGH E - COURT, MUMBAI. 2 . THE DEPARTMENT IS OBJECTING THE DELETING THE ADDITION OF RS. 16 LACS MADE BY AO ON ACCOUNT OF SHARE APPLICATION MONEY. 3 . THE AO NOTED THAT THE ASSES SEE HAS RECEIVED RS.16,00,000/ - AS SHARE APPLICATION MONEY. COPY OF CONFIRMATION FROM THE INVESTORS ALONG ITA NO. 2 00 /20 09 2 WITH IT RETURN WAS FILED. IT WAS EXPLAINED THAT ALL THESE SHARES APPLICATION MONEY HAS BEEN RECEIVED THROUGH PROPER BANKING CHANNEL, HOWEVER, SINCE TH E AO WANTED TO PRODUCE THE PARTIES, WHICH COULD NOT BE PRODUCED, THE AO MADE ADDITION UNDER SECTION 68 OF RS. 16 LACS RECEIVED AT SHARE APPLICATION MONEY. 4 . BEING AGGRIEVED WITH THE ORDER OF THE AO, ASSESSEE PREFERRED AN APPEAL BEFORE THE LEARNED CIT(A) . DETAILED SUBMISSIONS WERE FILED BEFORE THE CIT(A) . RELIANCE WAS PLACED ON THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF CIT VS. LOVELY EXPORTS PVT. LD., REPORTED IN (2008) 216 CTR 195 (SC) , WHEREIN IT HAS BEEN HELD THAT IF THE INVESTORS ARE IDE NTIFIED, THEN NO ADDITION CAN BE MADE IN THE HANDS OF THE ASSESSEE COMPANY, WHO HAS RECEIVED SHARE APPLICATION MONEY. ACCORDINGLY, ADDITION MADE BY THE AO WAS DELETED BY THE LEARNED CIT(A). AGGRIEVED THEREBY, NOW THE DEPARTMENT IS IN APPEAL HERE BEFORE THE TRIBUNAL. 5 . L EARNED DR PLACED RELIANCE ON THE ORDER OF AO. 6 . ON THE OTHER HAND, THE LEARNED COUNSEL OF THE ASSESSEE PLACED RELIANCE ON THE ORDER OF THE CIT(A) . 7 . AFTER CONSIDERING THE ORDER OF THE AO & CIT(A), WE FOUND NO INFIRMITY IN THE FINDING OF THE LEARNED CIT(A) . IT IS SEEN THAT THE AO EXAMINED THE INVESTORS, WHO HAVE CATEGORICALLY CONFIRMED THAT THEY HAVE INVESTED MONEY IN THE ASSESSEES COMPANY IN ORDER TO BUY S HA RES . INCOME TAX RECORDS WERE ALSO FILED. ALL THE INVESTORS/CREDITORS ITA NO. 2 00 /20 09 3 ARE HAVIN G PAN NUMBERS AND FILING THEIR INCOME TAX RETURN REGULARLY. IT IS FURTHER SEEN THAT BANK PASS BOOKS ALONG WITH OTHER DOCUMENTS WERE ALSO FILED. THEREFORE, WE FEEL THAT ONUS LAY UPON THE ASSESSEE HAS BEEN DISCHARGED. EVEN AND OTHERWISE THIS ISSUE IS COVERE D BY VARIOUS JUDGMENTS OF VARIOUS HIGH COURTS INCLUDING THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF LOVELY EXPORTS PVT. LD(SUPRA) , WHEREIN THE HON BLE SUPREME COURT HAS LAID DOWN THE LAW THAT THE SHARE APPLICATION MONEY CANNOT BE REGARDED AS U NDISCLOSED INCOME OF THE ASSESSEE COMPANY, IF THE ASSESSEE GIVES THE NAMES AND ADDRESS OF THE APPLICANTS TO THE AO. UNDISPUTEDLY, ALL THE DETAILS WERE FILED BEFORE THE AO SHOWING THE NAME, ADDRESS AND OTHER PARTICULARS OF THE PARTIES. THEREFORE, WE FEEL TH AT THE ADDITION MADE BY THE AO WAS NOT JUSTIFIED AND LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION. ACCORDINGLY, WE CONFIRM THE ORDER OF THE LEARNED CIT(A) ON THE ISSUE INVOLVED. 8 . RESULTANTLY , APPEAL OF THE DEPARTMENT I S DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 3 RD DAY OF APR .201 3 . 201 3 SD/ - SD/ - ( ) ( D.KARUNAKAR RAO ) ( ) ( R.K.GUPTA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 03 / 04 / 201 3 . /PKM , PS ITA NO. 2 00 /20 09 4 COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLAN T 2. / THE RESPONDENT. 3. / THE CIT(A) , MUMBAI / NAGPUR . 4. / CIT 5. / DR, ITAT, MUMBAI / NAGPUR . 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI