DCIT, New Delhi V. M/s Sadhna Media Pvt. Ltd., New Delhi

ITA 3770/DEL/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 7366 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 19-08-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 04-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A K JAIN
• Keywords: Bogus Share capital
• Section: 133(6); 68

Judgement Text

ITA NO. 3770/DEL/2009 A.Y. 2006-07 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER I.T.A. NO. 3770/DEL/2009 A.Y. : 2006-07 DCIT, CIRCLE-7(1), ROOM NO. 312, 3 RD FLOOR, C.R. BUILDING, I.P. ESTATE, NEW DELHI VS. M/S SADHNA MEDIA PVT LTD. 38, RANI JHANSI ROAD, NEW DELHI (PAN: AAHCS4532K) (APPELLANT ) (RESPONDENT ) ASSEESSEE BY : SH. A.K. JAIN, C.A DEPARTMENT BY : SH. A.K. MONGA, SR. D.R. PER I.P. BANSAL : JM THIS IS AN APPEAL FILED BY THE REVENUE. IT IS DIRE CTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 4.6. 2009 FOR THE ASSESSMENT YEAR 2006-07. 2. THE GROUNDS OF APPEAL READS AS UNDER:- (I) LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED , IN LAW ON FACTS AND CIRCUMSTANCES OF THE CASE, IN DELETING THE ADDITION S OF RS. 14,03,981/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF OTHER LIABILITIES. (II) LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED , IN LAW ON FACTS AND CIRCUMSTANCES OF THE CASE, IN DELETING THE ADDITION S OF RS. 7,93,700/- ITA NO. 3770/DEL/2009 A.Y. 2006-07 2 BY THE ASSESSING OFFICER ON ACCOUNT OF UNDISCLOSE D SHARE CAPITAL MONEY. (III) LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRE D, IN LAW ON FACTS AND CIRCUMSTANCES OF THE CASE, IN DELETING THE ADDITION S OF RS. 80,08,932/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF PRODUCTION EXPENSES. 3. DURING THE COURSE OF ASSESSMENT THE ASSESSING OF FICER MADE THE FOLLOWING ADDITIONS:- I) RS. 7,93,700/- BEING UNEXPLAINED SHARE CAPITAL MONEY. II) RS. 80,08,932/- BEING 30% OF THE EXPENSES : - LIVE TELECAST AND OTHER PRODUCTION EXPENSES, DIGI TAL TV CHANNELS SERVICES CHARGES, DISTRIBUTION EXPENSES AN D HIRING CHARGES AGGREGATING TO RS. 2,66,96,439/-. III) RS. 14,03,981/- BEING OTHER LIABILITIES. THEREFORE, AGGREGATED TO SUM OF RS. 1,02,06,613/- WAS ADDED TO THE RETURN INCOME OF THE ASSESSEE BY MAKING ASSESSMENT AT AN INCOME OF RS. 1,17,87,0640/- AGAINST THE RETURN INCOME OF RS. 15,81,024/-. 3.1 THE ABOVE ADDITIONS WERE AGITATED IN AN APPEAL FILED BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS). IT WAS SUBM ITTED THAT ADDITIONS HAVE BEEN MADE BY THE ASSESSING OFFICER WITHOUT APPREC IATING THE EVIDENCES SUBMITTED BEFORE HIM AND WITHOUT GOING INTO THE DETAILS WHICH WERE SUBMITTED. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS F ORWARDED ALL THE SUBMISSIONS ITA NO. 3770/DEL/2009 A.Y. 2006-07 3 OF THE ASSESSEE TO THE ASSESSING OFFICER CALLING FOR HIS COMMENTS ON ALL THE ADDITIONS AND THE ASSESSING OFFICER VIDE HIS REMAN D REPORT LETTER F.NO. ACIT/CIRCLE 7(1)/MISC./09-10/105 DATED 19.5.2009 H AS STATED AS UNDER:- THAT THE ASSESSEE WAS ASKED TO APPEAR BEFORE THE U NDERSIGNED FOR REMAND REPORT PROCEEDINGS U/S 250(4) OF THE IT ACT, 1961 O N 24.2.2009. IN RESPONSE TO WHICH THE ASSESSEE HAS APPEARED AND PRO DUCED THE BOOKS OF ACCOUNTS WHICH HAVE BEEN EXAMINED ON TEST CHECK BA SIS. THE DETAILS GIVEN BY THE ASSESSEE FOR THE ADDITION UNDER THE HEAD OT HER LIABILITIES AND ADDITION U/S 68 HAVE BEEN TEST CHECKED FROM THE BOO KS OF ACCOUNT PRODUCED. IN RESPECT OF DISALLOWANCE OF 30% ON PRO DUCTION AND OTHER EXPENSES, NOTICES U/S 133(6) HAD BEEN SENT TO SOM E OF THE PARTIES FOR VERIFICATION IN RESPECT TO WHICH THE REPLIES HAVE BEEN RECEIVED FROM ALL THE PARTIES TO WHOM NOTICE U/S 133(6) HAD BEEN SENT CON FIRMING THE CLAIM OF THE ASSESSEE. 3.2 FROM THE ABOVE REMAND REPORT SUBMITTED BY THE A SSESSING OFFICER, LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS OBSERVED THAT THE ASSESSING OFFICER HAS NOT DISPUTED THE SUBMISSIONS MADE BY THE ASSESS EE IN APPELLATE PROCEEDINGS ON ALL THE ADDITIONS MADE. ACCORDINGLY, HE DELETED ALL THE ADDITIONS. 4. THE DEPARTMENT IS AGGRIEVED, HENCE IN APPEAL. 5. AT THE OUT SET, IT WAS POINTED OUT BY THE LD. AU THORISED REPRESENTATIVE OF THE ASSESSEE THAT ALL THE NECESSARY DETAILS WERE S UBMITTED AFTER GOING THROUGH THOSE DETAILS AND AFTER VERIFYING THOSE DETAILS. A SSESSING OFFICER HAS ACCEPTED THE CLAIM OF THE ASSESSEE IN THE REMAND REPORT AND THER EFORE, HE PLEADED THAT LD. ITA NO. 3770/DEL/2009 A.Y. 2006-07 4 COMMISSIONER OF INCOME TAX (APPEALS) HAS RIGHTLY D ELETED THE ADDITION IN WHICH NO INTERFERENCE SHOULD BE MADE. 5.1 ON THE OTHER HAND LD. DEPARTMENTAL REPRESENTAT IVE RELIED UPON THE ORDER OF THE ASSESSING OFFICER . 6. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISS IONS, IN THE LIGHT OF THE MATERIAL PLACED BEFORE US. THE REPORT SUBMITTED B Y THE ASSESSING OFFICER IN RESPONSE TO THE SUBMISSIONS MADE BY THE ASSESSEE BE FORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ALREADY BEEN REPRODUCE D ABOVE. THE ASSESSING OFFICER HAD ADMITTED ALL THE CLAIMS OF THE ASSESS EE AND HAS NOT ADVERSELY COMMENTED UPON IN ALL THE ADDITIONS. THEREFORE, W E DID NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (AP PEALS) VIDE WHICH THE IMPUGNED ADDITIONS HAVE BEEN DELETED. WE DECLINE T O INTERFERE. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20/08/2010. SD/- SD/- [B.C. MEENA] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 20/08/2010 SRB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ITA NO. 3770/DEL/2009 A.Y. 2006-07 5 DEPUTY REGISTRAR, ITAT, DELHI BENCHES