ITO, New Delhi V. M/s P.D. Polychem Pvt Ltd, Delhi

ITA 4819/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4179 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 25-04-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 03-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI RAMACHAN DRAN
• Keywords: Retrospective amendment; Tax effect
• Section: 68; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F NEW DELHI) BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI B.K. HALDAR, ACCOUNTANT MEMBER I.T.A. NO.4819 /DEL/2010 ASSESSMENT YEAR : 2002-03 ITO, P.D. POLYCHEM PVT. LTD., WARD-14 (1), 936-TILAK BAZAR, NEW DELHI. V. DELHI. (APPELLANT) (RESPONDENT) PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO.AACPI099B AACPI099B AACPI099B AACPI099B APPELLANT BY : SHRI RAVI RAMA CHANDRAN, SR. DR. RESPONDENT BY : SHRI R.S. SINGHVI, ADVOCATE. ORDER PER B.K. HALDAR, AM: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORD ER OF LF CIT(A) XVII, NEW DELHI DATED 22.09.2010 FOR ASSESSMENT YEAR 20 02-03. REVENUE HAS TAKEN THE FOLLOWING GROUNDS OF APPEALS:- 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD CIT(A) ERRED IN DELETING THE ADDITION OF `.7,50, 000/- MADE ON ACCOUNT OF SHARE CAPITAL U/S 68 OF THE INCOME TAX ACT , 1961. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS IN LAW, THE LD CIT(A) ERRED IN IGNORING THE FACT THAT THE A SSESSEE FAILED TO PRODUCE DIRECTORS/AUTHORIZED REPRESENTATIVE OF THE AL LEGED APPLICANTS EVEN AFTER SPECIFICALLY BEING ASKED TO DO SO BY THE PAGE 2 OF 4 ITA NO4819/DEL/10 ASSESSING OFFICER AND, THUS FAILED TO DISCHARGE ITS ONUS TO ESTABLISH THE IDENTITY AND CREDITWORTHINESS OF THE SHARE APPLICANTS AND THE GENUINENESS OF TRANSACTION. 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS IN LAW, THE LD CIT(A) ERRED IN RELYING UPON THE DECISION GIV EN IN THE CASE OF LOVELY EXPORTS PVT. LTD. THE ASSESSING OFFICER DID N OT ASK THE ASSESSEE TO PRODUCE ANY OF THE INVESTOR SHAREHOLDERS. HOWE VER, IN THE INSTANT CASE THE ASSESSEE WAS SPECIFICALLY ASKED AND GIVEN A NUMBER OF OPPORTUNITIES TO PRODUCE THE DIRECTORS/AU THORIZED REPRESENTATIVE OF THE INVESTING COMPANIES, BUT YET NON E COULD BE PRODUCED BEFORE THE ASSESSING OFFICER BY THE TAX PAYER. 2. AT THE TIME OF HEARING, LD AUTHORIZED REPRESENTAT IVE FOR THE ASSESSEE SUBMITTED THAT THE HON'BLE JURISDICTIONAL HIGH C OURT IN THE CASE OF CIT V., DELHI RACE CLUB LTD. IN I.T.A. NO.12 8/2008 HAVE HELD THAT THE RELEVANT CIRCULAR OF THE CBDT LAYING DOWN THE M ONETARY LIMIT FOR FILING OF APPEAL BEFORE VARIOUS APPELLATE AUTHORITIE S WOULD HAVE RETROSPECTIVE EFFECT. IN THE PRESENT CASE, ADMITTEDLY THE TAX EFFECT INVOLVED IS LESS THAN `.3,00,000/-. IN VIEW OF THE ABO VE, IT WAS SUBMITTED BY HIM THAT THE APPEAL FILED BY THE REVENU E REQUIRES TO BE DISMISSED. 3. LD DEPARTMENTAL REPRESENTATIVE HAS NOT DISPUTED THE ABOVE SUBMISSIONS MADE BY THE LD AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE. 4. IN VIEW OF THE ABOVE, WE HOLD THAT THE REVENUES APPEAL IS NOT IN CONFORMITY WITH THE RELEVANT CIRCULAR OF THE CBDT. THIS BEING THE CASE, WE DISMISS THE APPEAL FILED BY THE REVENUE. PAGE 3 OF 4 ITA NO4819/DEL/10 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. 6. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE O F HEARING I.E. 25 TH APRIL, 2011. SD/- SD/- (R.P. TOLANI) (B.K. HAL DAR) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 25.4.2011. HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. BY ORDER (ITAT, NEW DELHI). DATE OF HEARING 25/4/2011 DATE OF DICTATION 25/4/2011 DATE OF ORDER SIGNED BY THE HON'BLE MEMBER. DATE OF ORDER SENT TO THE CONCERNED BENCH PAGE 4 OF 4 ITA NO4819/DEL/10