ACIT, New Delhi V. M/s. Bulland Buildtech Pvt. Ltd., New Delhi

ITA 4159/DEL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2735 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 03-07-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 25-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Assessee Lawyers: SAKSHI ARORA
• Keywords: Revenue expenditure; Capital expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : A : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.4159/DEL/2014 ASSESSMENT YEAR : 2010-11 ACIT, CENTRAL CIRCLE-25, NEW DELHI. VS. BULLAND BUILDTECH PVT. LTD., A-2, DEVLI ROAD, KHANPUR, NEW DELHI. PAN: AACCB2352D (APPELLANT) (RESPONDENT) ASSESSEE BY : MS SAKSHI ARORA, CA, DEPARTMENT BY : SHRI RAVI JAIN, CIT, DR DATE OF HEARING : 03.07.2017 DATE OF PRONOUNCEMENT : 05.07.2017 ORDER PER R.S. SYAL, VP: THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 06.05.2014 IN RELATION TO THE ASSESSMENT YEAR 2010-11. ITA NO.4159/DEL/2014 2 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE ALLOTTED SHARES TO CERTAIN PERSONS TOTALING RS.7.20 CRORE. OUT OF SUCH ALLOTMENT, SHARES WERE ISSUED FOR A SUM OF RS.1.93 CRORE DURIN G THE YEAR UNDER CONSIDERATION AND SHARES FOR THE REMAINING AMOUNT O F RS.5.27 CRORE WERE ISSUED IN THE SUCCEEDING YEAR. ON BEING CALLED UPON TO PROVE THE GENUINENESS OF THE SHARES WORTH RS.1.93 CRORE ISSUE D DURING THE YEAR, THE ASSESSEE, VIDE LETTER DATED 05.03.2013, SUBMITTED T HAT THESE WERE MERE BARTER TRANSACTIONS NOT INVOLVING ANY CASH OR BANK INASMUCH AS THE SHARES WERE ISSUED AGAINST THE COLLABORATION AGREEMENT FOR AGRICULTURAL LAND OWNED BY SUCH PERSONS. NOT CONVINCED, THE ASSESSIN G OFFICER MADE ADDITION OF RS.1.93 CRORE. A FURTHER SUM @ 1% WAS DISALLOWED AS A CAPITAL EXPENDITURE RELATING TO INCREASE IN THE AUT HORIZED CAPITAL. THE LD. CIT(A) CALLED FOR THE REMAND REPORT FROM THE ASSESS ING OFFICER. CONSIDERING SUCH REMAND REPORT AND THE SUBMISSIONS ADVANCED BY THE ASSESSEE, THE LD. CIT(A) DELETED THE ADDITION OF RS .1.93 CRORE. HE FURTHER ALLOWED A RELIEF AGAINST THE DISALLOWANCE OF RS.1.9 3 LAC, BEING CAPITAL EXPENDITURE RELATING TO INCREASE IN AUTHORIZED CAPI TAL, ON THE GROUND THAT THE ASSESSEE CHARGED ONLY A SUM OF RS.57,307/- TO I TS PROFIT & LOSS ITA NO.4159/DEL/2014 3 ACCOUNT AND HENCE THERE COULD BE NO DISALLOWANCE FOR MORE THAN THAT. THE REVENUE IS AGGRIEVED AGAINST THE DELETION OF AD DITIONS. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND P ERUSING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT SOME LAND B ELONGING TO CERTAIN PERSONS WAS POOLED AGAINST WHICH THE ASSESSEE COMPA NY ALLOTTED SHARES EQUIVALENT TO THE RESPECTIVE VALUE OF THE LAND CONT RIBUTION. THE OWNERSHIP AND SOURCE OF LAND CONTRIBUTION IS NOT DISPUTED. U NDER SUCH CIRCUMSTANCES, THERE CANNOT BE ANY QUESTION OF TREATING THE CORRES PONDING ISSUE OF SHARE CAPITAL AS BOGUS. WE, THEREFORE, UPHOLD THE DELETI ON OF ADDITION OF RS.1.93 CRORE. 4. AS REGARDS THE SECOND GROUND OF THE REVENUE A GAINST THE RESTRICTING THE DISALLOWANCE TO RS.57,307/- AGAINST THE AMOUNT DISALLOWED BY THE ASSESSING OFFICER AT RS.1.93 LAC, IT AS AN UNDISPU TED FACT THAT THE ASSESSEE CHARGED ONLY A SUM OF RS.57,307/- TO ITS PROFIT & L OSS ACCOUNT. AS SUCH, THERE COULD HAVE BEEN NO QUESTION OF MAKING ADDITIO N FOR MORE THAN THE AMOUNT CLAIMED AS REVENUE EXPENDITURE BY THE ASSESS EE. THIS GROUND IS ALSO NOT ALLOWED. ITA NO.4159/DEL/2014 4 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 05.07.201 7. SD/- SD/- [KULDIP SINGH] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 05 TH JULY, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.