Nirvana Agrotech Pvt Ltd, New delhi V. ITO WARD - 18(3), New delhi

ITA 4981/DEL/2019

AI Insights

Nirvana Agrotech Pvt. Ltd. appealed against the order of the CIT (Appeals)-37, New Delhi, which confirmed the additions made by the AO for the Assessment Year 2010-11. The additions were made following a search and seizure operation at the premises of Surendra Kumar Jain, leading to the treatment of Rs. 25,00,000 as unexplained share application money and Rs. 50,000 as unexplained commission. The assessee, represented by advocates Shri K. Sampath and Shri V. Rajakumar, requested the opportunity to present additional evidence, which was agreed upon by the Revenue representative, Shri Om Prakash, Sr. DR. The Tribunal's decision to remit the case back to the AO allows for a re-evaluation of the evidence and potentially a different outcome based on the new submissions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114049 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 06-03-2023
• Assessment Year: misc
• Appeal Filed On: 30-05-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Additional evidence
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘SMC’ : NEW DELHI) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA No.4981/Del./2019 (ASSESSMENT YEAR : 2010-11) Nirvana Agrotech Pvt. Ltd., vs. ITO, Ward 18 (3), H-2, Next to Bharat Petrol Pump, New Delhi. Pushpanjali, Dwarka Highway, New Delhi – 110 061. (PAN : AACCN6208N) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri K. Sampath, Advocate Shri V. Rajakumar, Advocate REVENUE BY : Shri Om Prakash, Sr. DR Date of Hearing : 07.03.2023 Date of Order : 13.03.2023 ORDER This appeal by the assessee is directed against the order of ld. CIT (Appeals)-37, New Delhi dated 12.04.2019 pertaining to the Assessment Year 2010-11. 2. The grounds of appeal taken by the assessee read as under :- “On the facts and in the circumstances of the case and in law the Ld. CIT (Appeals) erred in confirming the following actions of the Assessing Officer : i. Initiating proceedings under section 147/148 of the Income Tax Act, 1961 (‘the Act’) without there being any valid reasons forming belief of escapement of income; ITA No.4981/Del./2019 2 ii. Making following additions to the returned income :- a) Rs.25,00,000/- on account of share application money received treating the same as unexplained invoking section 68 of the Act; b) Rs.50,000/- on account of alleged commission paid on conjectures and surmises. All the above actions being erroneous, unlawful and untenable, it is prayed that the same must be quashed with directions for appropriate relief.” 3. The issue in this case is addition on account of share application pursuant to search and seizure activity in the business premises of Surendra Kumar Jain. In absence of necessary material, the additions were made by the AO and sustained by the ld. CIT (A). 4. Against this order, assessee is in appeal before us. We have heard both the parties and perused the records. 5. At the outset, in this case, ld. Counsel of the assessee made a prayer that due to lack of proper presentation before the authorities below, assessee now wishes to file additional documents and additional evidences and prayed that the matter may be remitted back to the file of AO to examine the issue afresh in the light of these submissions. 6. Per contra, ld. DR for the Revenue did not have any objection to this proposition. ITA No.4981/Del./2019 3 7. Upon careful consideration, we find that assessee by way of additional evidences has made submissions in the paper book. Index of Additional evidences submitted is as under :- S.No. Particulars Pages 1. Copy of confirmation, Share Application Form, Bank Statement and Confirmation of accounts of M\s Victory Software Pvt. Ltd. 1 – 6 2. Copy of Affidavit of Anil Kumar Bansal, Director of M/s Victory Software Pvt. Ltd. 7 3. Copy of PAN of M/s Victory Software Pvt. Ltd. 8 4. Copy of Certificate of Incorporation M/s Victory Software Pvt. Ltd. 9 5. Copy of Memorandum of Association and Articles of Association M/s Victory Software Pvt. Ltd. 10- 30 6. Copy of Audit Report, ITR and Assessment Order of M/s Victory Software Pvt. Ltd. 31 – 49 7. Copy of confirmation, Share Application Form, Bank Statement and Confirmation of accounts of M/s Zenith Automotive Pvt. Ltd. 50 – 55 8. Copy of Affidavit of Niranjan Kumar Sharma, Director of M/s Zenith Automotive Pvt. Ltd. 56 9. Copy of PAN of M/s Zenith Automotive Pvt. Ltd. 57 10. Copy of Certificate of Incorporation of M/s Zenith Automotive Pvt. Ltd. 58 11. Copy of Memorandum of Association and Articles of Association M/s Victory Software Pvt. Ltd. 59 – 78 12. Copy of Audit Report, ITR and Assessment Order of M/s Victory Software Pvt. Ltd. 79 – 94 ITA No.4981/Del./2019 4 Since both the parties have agreed we admit these additional evidences and remit the matter to the AO to decide the issue afresh. Needless to add, assessee should be provided an opportunity of being heard. 8. In the result, assessee’s appeal is allowed for statistical purposes. Order pronounced in the open court on this 13 th day of March, 2023. Sd/- (SHAMIM YAHYA) ACCOUNTANT MEMBER Dated the 13 th day of March, 2023 TS Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(A)-37, New Delhi. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.