ITO, New Delhi V. M/s Meriton Towers Pvt. Ltd., New Delhi

ITA 3188/DEL/2009

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9712 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2006-2007
• Appeal Filed On: 10-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RENU AMITABH
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `E : NEW DELHI) BEFORE SHRI A.D. JAIN, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.3188/DEL./2009 (ASSESSMENT YEAR : 2006-07) ITO, WARD 6(4), VS. M/S MERITON TOWERS PVT. LTD. , NEW DELHI. 379, KOHAT ENCLAVE, PITAMPURA, NEW DELHI. (PAN/GIR NO.AAECM4062F) (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : MS. RENU AMITABH, SR.DR. ORDER PER A.D. JAIN: JM THIS IS A REVENUES APPEAL DIRECTED AGAINST THE OR DER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-IX, NEW DELHI DATED 2.4.09 FOR ASSESSMENT YEAR 2006-07. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF NOT ICE AND HENCE WE DECIDE THIS APPEAL EX- PARTE QUA-THE-ASSESSEE. THE ONLY GROUND RAISED BY THE REVENUE READS AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE COMMISSIONER OF INCOME- TAX (APPEALS) HAS ERRED IN THE DELETING ADDITION OF RS.45,90,000 MADE BY ASSESSING OFFICER U/S 68 OF THE I.T. ACT. 2. BRIEFLY STATED, AS NOTED ON PAGE 1 OF THE ASSESS MENT ORDER THAT DURING THIS YEAR, ARE THE ASSESSEE HAS RECEIVED SHARE APPLICATION MONEY O F RS.150.30 LAKH FROM VARIOUS PARTIES, BUT OUT OF THIS, AN AMOUNT OF RS.23.40 LAKH WAS REC EIVED FROM M/S AT ALL TIMES YOUR SECURITIES P. LTD. AND RS.22.50 LAKH WAS RECEIVED F ROM M/S ARCHIT FINESCRIP LTD. THE ASSESSING OFFICER WAS OF THE VIEW THAT THE ASSESSEE COULD NOT FULFILL THE REQUIREMENT OF SECTION 68 WITH REGARD TO THESE RECEIPTS AND HE ADD ED THIS AMOUNT OF RS.45.90 LAKH U/S 68 BY HOLDING THE SAME TO BE UNEXPLAINED CASH CREDIT. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE COMMISSIONER OF INC OME-TAX (APPEALS), WHO HAS DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE BY FOLLOWING T HE JUDGMENT OF HONBLE SUPREME COURT I.T.A. NO.3188/DEL./2009 (A.Y. : 2006-07) 2 RENDERED IN THE CASE OF CIT VS. LOVELY EXPORTS PVT. LTD., 216 CTR 695 AND NOW THE REVENUE IS IN APPEAL BEFORE US. 3. LD.DR OF THE REVENUE SUPPORTED THE ASSESSMENT OR DER. WHEN IT WAS POINTED OUT BY THE BENCH THAT THIS ISSUE IS NOW COVERED IN FAVO UR OF THE ASSESSEE BY THE JUDGMENT OF HON'BLE APEX COURT RENDERED IN THE LOVELY EXPORTS P VT. LTD.(SUPRA), LD.DR OF THE REVENUE HAD NOTHING TO SAY IN REPLY. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD.DR OF THE REVENUE AND SINCE THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE J UDGMENT OF HON'BLE APEX COURT RENDERED IN THE CASE OF LOVELY EXPORT PVT. LTD.(SUP RA), WE FIND NO REASON TO INTERFERE WITH THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEAL S) BECAUSE IT IS NOTED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON PAGE 4 OF H IS ORDER THAT THE IDENTITY OF THESE INVESTORS STANDS PROVED BEYOND ANY DOUBT. IT IS FU RTHER OBSERVED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) THAT IN FACT, THE ASSESSING OF FICER HAS ALSO NOT RAISED ANY DOUBT IN RESPECT OF THE IDENTITY OF THE SHARE APPLICANTS. I N VIEW OF THESE FACTS, WE CONFIRM THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) B Y FOLLOWING THE JUDGMENT OF THE HON'BLE APEX COURT RENDERED IN THE CASE OF LOVELY E XPORTS PVT. LTD.(SUPRA), WHEREIN IT WAS HELD BY THE HON'BLE APEX COURT THAT IF THE IDE NTITY OF THE INVESTORS IS ESTABLISHED, THE ASSESSMENT IN THE CASE OF THE INVESTORS CAN BE REOP ENED AS PER LAW, BUT NO ADDITION CAN BE MADE IN THE HANDS OF THE COMPANY WHO HAS RECEIVED T HE SHARE APPLICATION MONEY. IN VIEW OF THE ABOVE, WE DECIDE THIS ISSUE IN FAVOUR OF THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. 6. ORDER PRONOUNCED IN OPEN COURT ON THE DATE OF HE ARING, I.E., 10.09.2009. (A.K. GARODIA) (A.D.JAIN ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: SEPT. 10, 2009. *SKB* COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A)-IX, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. AR/ITAT I.T.A. NO.3188/DEL./2009 (A.Y. : 2006-07) 3