Sunnyday Green Energy Pvt. Ltd., New Delhi V. ITO, Ward- 5(2), Delhi

ITA 2814/DEL/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 4357 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 01-04-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3); 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘B’ : NEW DELHI) BEFORE SH. R.K.PANDA, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.2814/Del/2019 (Assessment Year : 2015-16) M/s. Sunnyday Green Energy Pvt. Ltd. 616 A, 16A, Sixth Floor, Devika Tower, Nehru Place, Delhi-110019 PAN : AAPCS3906F Vs. ITO, Ward-5(2), New Delhi (APPELLANT) (RESPONDENT) Assessee by None Revenue by Sh. Rajesh Kumar Dhanesta, Sr. DR Date of hearing: 20.04.2022 Date of Pronouncement: 20 .04.2022 ORDER PER ANUBHAV SHARMA, JM: The assessee has filed the appeal against order dated 18.01.2019 in appeal no. 10385/2017-18 by the Commissioner of Income Tax (Appeals)-8, New Delhi in appeal pending before him against assessment order dated 28.12.2017 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the Assessing Officer ITO, Ward, 24(3), New Delhi for the assessment year 2015-16. 2 ITA No. 2814/Del/2019 Sunnyday Green Energy P. Ltd. 2. The assessee had filed return of income declaring income of Rs. Nil for the assessment year 2015-16 and the case was taken up for scrutiny and assessment u/s 143(3) of the Act as during the year under consideration assessee-company had received share premium of Rs. 5,00,76,180/- on issuance of 50,582/- equity shares of face value of Rs. 10/- at premium of Rs. 990/- per share. The Ld. AO had considered the net worth of company in negative and rejected the calculation provided under Rule 11UA as the same was found to be based after including premium amount in the balance sheet. Accordingly, an addition of Rs. 5,00,76,180/- was made. 3. In appeal the Ld. First Appellate Authority had found no fault in the procedure for assessment adopted by Ld. AO. 4. Now before the Tribunal the assessee has raised following grounds of appeal :- “1. Under the facts and circumstances of the case, the CIT(A) has grossly erred on facts as well as in law in partly confirming the order passed by the Ld. AO which is ex-facie illegal, arbitrary and without jurisdiction being against the principles of natural justice and against the provisions of IT Act, 1961. 2. The Ld. CIT(A) has grossly erred on facts as well as in law in confirming the addition of Rs. 5,00,76,180/- u/s 56(2)(viib) of the IT Act, 1961. 3. The Ld. CIT(A) has grossly erred on facts as well as in law in supporting the rejection of the Valuation report by the Ld. AO without appreciating the facts in proper perspective. 4. The Ld. CIT(A) has grossly erred on facts as well as in law in considering explanation (a) (ii) to sec. 56(2)(viib) though explanation (a)(i) to sec 56(2)(viib) is applicable. 5. The Ld. CIT(A) has grossly erred on facts as well as in law in relying upon the case laws having entirely different facts and not applicable in the case of appellant. 3 ITA No. 2814/Del/2019 Sunnyday Green Energy P. Ltd. 6. The appellant craves leave to add, alter, modify and withdraw any ground of appeal before or during the appellate proceedings.” 5. The case was called for hearing today on 20.04.2022 but non-appeared and the notices have been received back unserved with the report that there is no such person at the address given. The same was issued on the address details given by the assessee in Form no. 36. No further notice is justified and it appears that the assessee is not interested to prosecute the appeal. Accordingly the arguments of the Sr. DR were heard who supported the orders of ld. Tax Authorities Below. 6. Given thoughtful consideration to the matter on record it can be observed that in para 6.2 the ld. AO has made observations with regard to facts which indicate that the assessee company has failed to justify charging such high premium. Also there was apparent fault in the manner in which the valuation of the company was made by including the premium received by the assessee in the net worth. The Ld. CIT(A) has also gone in detail in the grounds of appeal raised before it with regard to the applicability of Section 56(2)(viib) of the Act and that the Assessing officer had made appropriate evaluation of the relevant material to consider that the compulsory convertible preference shares was just a means to infuse unaccounted money in the company. No ground is made out to interfere in the orders. The appeal is dismissed ex parte. Order pronounced in open court on conclusion of the hearing on this 20th April, 2022. Sd/- Sd/- (R.K.PANDA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 20.04.2022 *Binita, SR.P.S* 4 ITA No. 2814/Del/2019 Sunnyday Green Energy P. Ltd. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI