ITO, New Delhi V. M/s. Goel Linkers Pvt. Ltd., Ghaziabad

ITA 5072/DEL/2010

• Counselvise Citation: 507220114 RSA 2010
• Duration Of Justice: 1 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 27-03-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 18-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH C DELHI) BEFORE SHRI G.D. AGRAWAL, HONBLE VICE PRESIDENT AND SHRI A.D. JAIN, JUDICIAL MEMBER ITA NO. 5072(DEL)2010 ASSESSMENT YEAR: 2006-07 INCOME TAX OFFICER, M/S. GOEL LINKERS PVT. LTD. WARD 12(2), NEW DELHI. V. 188, HAPUR ROAD , GHAZIABAD. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI ALOK SINGH, SR. DR RESPONDENT BY: SHRI ALOK GUPTA, CA ORDER PER A.D. JAIN, J.M . THIS IS DEPARTMENTS APPEAL FOR THE ASSESSMENT YEAR 2006-07. THE FOLLOWING GROUNDS ARE RAISED BY THE DEPARTMENT:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF ` 52,58,000/- ON ACCOUNT OF UNCONFIRMED SHARE CAPITAL U/S 68 OF THE I.T. ACT. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E CIT(A) ERRED IN DELETING THE ADDITION OF ` 4,21,000/- ON ACCOUNT OF UNSECURED LOAN U/S 68 OF THE I.T. ACT, IGNORING THE FACT THAT ASSESSEE HAD FAILED TO PROVE CREDIT-WORTHINESS AND GENUINENESS OF THE TRANSACTIO N THEREBY NOT DISCHARGING THE ONUS COST ON IT BY LAW. ITA 5072(DEL)2010 2 2. THE AO MADE AN ADDITION OF ` 52,58,000/- ON ACCOUNT OF UNCONFIRMED SHARE CAPITAL U/S 68 OF THE I.T. ACT AND AN ADDITIO N OF ` 4,21,000/- ON ACCOUNT OF UNSECURED LOAN U/S 68 OF THE I.T. ACT. WHILE DOING SO, THE AO OBSERVED THAT NO DETAILS INCLUDING RETURN OF INCOME AND AUDITED FINANCIAL STATEMENTS WERE AVAILABLE BEFORE HIM. 3. BY VIRTUE OF THE IMPUGNED ORDER, THE LD. CIT(A) DELETED BOTH THE ADDITIONS MADE BY THE AO, AGAINST WHICH ACTION OF T HE LD. CIT(A), THE PRESENT APPEAL HAS BEEN FILED BY THE DEPARTMENT. 4. THE LD. DR HAS CONTENDED THAT THE LD. CIT(A) HAS ERRED IN DELETING BOTH THE ADDITIONS CORRECTLY MADE BY THE AO, IGNORI NG THAT NO DETAILS HAD BEEN FILED BEFORE THE AO AND THAT THE ASSESSEE HAD ALSO FAILED TO PROVE THE CREDIT- WORTHINESS OF THE PARTIES AND THE GENUINENE SS OF THE TRANSACTION AND HAD, THEREBY, NOT DISCHARGED ITS ONUS U/S 68 OF THE ACT. 5. THE LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTH ER HAND, HAS SUBMITTED THAT THE ADDITION WAS MADE U/S 144 OF THE I.T. ACT AND THAT THE LD. CIT(A) HAS RIGHTLY DELETED BOTH THE ADDITIONS, HOLDING THAT NO THING HAD BEEN RECEIVED BY THE ASSESSEE DURING THE YEAR. ITA 5072(DEL)2010 3 6. THE IMPUGNED ORDER SHOWS THAT BEFORE THE LD. CIT (A), THE ASSESSEE COMPANY HAD FILED AUDITED BALANCE SHEETS AND OTHER FINANCIAL STATEMENTS FOR THE YEAR UNDER CONSIDERATION, AS ALSO FOR THE ASSES SMENT YEARS 2004-05 AND 2005-06. THERE-FROM, THE LD. CIT(A) OBSERVED THAT THE CAPITAL OF ` 52,58,000/- AND UNSECURED LOANS OF ` 4,21,000/- STOOD DULY REFLECTED IN THE BALANCE SHEETS FOR THE ASSESSMENT YEARS 2004-05 AND 2005-06 AND THAT NO PART THEREOF HAD BEEN RECEIVED DURING THE YEAR UNDE R CONSIDERATION . PERTINENTLY, THE MATTER HAD BEEN REMANDED TO THE AO AND IN THE REMAND PROCEEDINGS, NO ADVERSE MATERIAL HAD BEEN BROUGHT B Y THE AO TO SUPPORT THE ADDITIONS. THE AO, RATHER, IN THE REMAND REPORT, STATED THAT THE DECISION ON ACCOUNT OF SHARE CAPITAL AND UNSECURED LOANS MAY BE TAKEN ON MERITS. 7. THE ABOVE FACTS AS OBSERVED IN THE IMPUGNED ORDE R REMAIN UNREBUTTED. THE ORDER OF THE LD. CIT(A) IS FOUND TO BE ON ALL F OURS. THEREFORE, WE FIND NO MERIT IN EITHER OF THE GROUNDS RAISED BY THE DEP ARTMENT AND THE SAME ARE, HENCE, REJECTED. 8. IN THE RESULT, THE APPEAL FILED BY THE DEPARTMEN T IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.03.2012. SD/- SD/- (G.D. AGRAWAL) (A.D. JAIN) ITA 5072(DEL)2010 4 VICE PRESIDENT JUDICIAL MEMBER DATED: 30.03.2012 *RM COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR TRUE COPY BY ORDER ASSISTANT REGISTRAR