M/s Purochem India Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 5462/DEL/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0019 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 22-04-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 04-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SAHAY
• Assessee Lawyers: DEEPAK OSTWAL
• Keywords: Reopening of assessment; Capital receipt
• Section: 147; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI INTURI RAMA RAO INTURI RAMA RAO INTURI RAMA RAO INTURI RAMA RAO, , , , ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 5462/DEL/2013 5462/DEL/2013 5462/DEL/2013 5462/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2004 2004 2004 2004 - -- - 05 0505 05 M/S PUROCHEM INDIA PVT. LTD., M/S PUROCHEM INDIA PVT. LTD., M/S PUROCHEM INDIA PVT. LTD., M/S PUROCHEM INDIA PVT. LTD., 94, SWYAM SIDH CO 94, SWYAM SIDH CO 94, SWYAM SIDH CO 94, SWYAM SIDH CO- -- -OP OP OP OP SOC SOC SOC SOCIETY, IETY, IETY, IETY, NEAR MADIPUR VILLAGE, NEAR MADIPUR VILLAGE, NEAR MADIPUR VILLAGE, NEAR MADIPUR VILLAGE, WEST PUNJABI BAGH, WEST PUNJABI BAGH, WEST PUNJABI BAGH, WEST PUNJABI BAGH, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 026. 110 026. 110 026. 110 026. PAN : AAACP5654Q. PAN : AAACP5654Q. PAN : AAACP5654Q. PAN : AAACP5654Q. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -14(4), 14(4), 14(4), 14(4), NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 002. 110 002. 110 002. 110 002. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DEEPAK OSTWAL, CA. RESPONDENT BY : SHRI VIKRAM SA HAY, SR.DR. DATE OF HEARING : 22.04.2015 22.04.2015 22.04.2015 22.04.2015 DATE OF PRONOUNCEMENT : 06.05.2015 06.05.2015 06.05.2015 06.05.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA, VP , VP , VP , VP : :: : THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2004-0 5 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XVII, N EW DELHI DATED 19 TH JULY, 2013. 2. THE GROUND OF APPEAL NO.6 OF THE ASSESSEE IS AS UNDER :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE LD.CIT(A)-XVII ERRED IN UPHOLDING THE ILLEGAL ADDIT IONS OF RS.5,00,000/- U/S. 68 ON ACCOUNT OF UNEXPLAINED INCOM E BY THE RESPONDENT IGNORING THE FACT THAT THE TRANSACTIO N BEING CAPITAL RECEIPT WAS WELL EXPLAINED AND SUPPORTED BY ITA-5462/DEL/2013 2 RECORDS AND DOCUMENTS ALREADY FILED BEFORE AO. HENCE THE ORDER(S) MAY BE VACATED AND DEMAND MAY BE DELETED. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT A LL THE EVIDENCES TO PROVE THE GENUINENESS OF THE CREDIT ENTRI ES WERE FILED BEFORE THE REVENUE AUTHORITIES, COPY OF WHICH HAS BEE N FILED IN THE COMPILATION FROM PAGE 27 ONWARDS. HE SUBMITTED THAT THE VARIOUS EVIDENCES IN THE FORM OF COPY OF SHARE APPLICATION, CONFIRMATION, INCOME TAX RETURN, ACCOUNTS STATEMENT, PERMANENT ACCO UNT NUMBER, CHEQUE ISSUED TO THE ASSESSEE COMPANY FOR INVESTMENT IN SHA RES, MASTER DATA DOWNLOADED FROM THE SITE OF MINISTRY OF CO RPORATE AFFAIRS, AFFIDAVIT OF THE DIRECTOR, BANK STATEMENT ETC. WERE FILED BEFORE THE ASSESSING OFFICER. HE SUBMITTED THAT THE IDENTITY, CRED ITWORTHINESS OF THE SHARE APPLICANT PARTIES ALONG WITH THE GENUINENESS OF THE TRANSACTION WERE PROVED BY THE ASSESSEE. 4. LEARNED DR HAS OPPOSED THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. HE REFERRED TO THE RELEVANT PORTION OF THE ASSESSMENT ORDER AND THE APPELLATE ORDER PASSED BY THE LE ARNED CIT(A) IN SUPPORT OF THE CASE OF THE DEPARTMENT. HE RELIED ON THE ORDER OF THE ASSESSING OFFICER AND THE CIT(A). HE FURTHER SUBMITTED THAT THE SUMMONS WERE ISSUED TO M/S HOPEWIN ADMARK & CONSULTANCY S ERVICES PVT.LTD. AND NOBODY APPEARED BEFORE THE ASSESSING OFFIC ER. HE SUBMITTED THAT DURING THE APPELLATE PROCEEDINGS, ONLY A LETTER WAS RECEIVED FROM THIS COMPANY AND NO DIRECTOR ATTENDED PERSONALLY. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PER USED THE ORDER OF THE ASSESSING OFFICER AND THE CIT(A). THE CLA IM OF THE ASSESSEE, THAT IT HAS FILED THE COPIES OF NUMBER OF DOCUM ENTS DETAILED ABOVE BEFORE THE ASSESSING OFFICER IN SUPPORT OF ITS CL AIM REGARDING THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSA CTION OF ITA-5462/DEL/2013 3 DEPOSIT BY THE COMPANY FROM WHOM THE ASSESSEE HAS RECEIV ED THE AMOUNT IN QUESTION, COULD NOT BE CONTROVERTED BY THE REVENUE. MERELY BECAUSE NO ONE HAS ATTENDED PERSONALLY ON BEHALF OF M/ S HOPEWIN ADMARK & CONSULTANCY SERVICES PVT.LTD., IS NO GROUND T O MAKE THE ADDITION IN THE HANDS OF THE ASSESSEE. THE SUMMONS ISSUED TO M/S HOPEWIN ADMARK & CONSULTANCY SERVICES PVT.LTD. WERE SE RVED ON THEM AND THEY HAD FILED THE CONFIRMATION AND OTHER EVIDE NCES BEFORE THE ASSESSING OFFICER. DURING THE COURSE OF APPELLATE PROCE EDINGS BEFORE THE LEARNED CIT(A) ALSO, M/S HOPEWIN ADMARK & CONSULTA NCY SERVICES PVT.LTD. HAS FILED A LETTER CONFIRMING THE FACT OF H AVING APPLIED SHARE CAPITAL TO THE ASSESSEE COMPANY. IN THESE FACTS OF THE C ASE, WE HOLD THAT THE ONUS ON THE ASSESSEE TO PROVE THE ENTRY HAS BEEN DISCHARGED BY IT AND NO CASE OF ADDITION U/S 68 OF THE INCOME-TA X ACT, 1961 COULD BE MADE BY THE DEPARTMENT. ACCORDINGLY, THE ISSUE IS DECIDED IN FAVOUR OF THE ASSESSEE AND GROUND NO.6 OF THE ASSESSEES AP PEAL IS ALLOWED. 6. THE OTHER GROUNDS OF APPEAL NO.1 TO 5 RAISED BY TH E ASSESSEE RELATE TO THE ISSUE OF LEGALITY OF REASSESSMENT NOTICE ISSU ED U/S 147 OF THE ACT. IN VIEW OF OUR ABOVE DECISION IN THE APPEA L OF THE ASSESSEE ON MERITS, WE ARE NOT ADJUDICATING THE LEGAL ISSUES REGARD ING THE LEGALITY OF REOPENING OF ASSESSMENT U/S 147 OF THE ACT. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 6 TH MAY, 2015. SD/- SD/- ( (( ( INTURI RAMA RAO INTURI RAMA RAO INTURI RAMA RAO INTURI RAMA RAO ) )) ) (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-5462/DEL/2013 4 COPY FORWARDED TO: - 1. APPELLANT : M/S PUROCHEM INDIA PVT. LTD., M/S PUROCHEM INDIA PVT. LTD., M/S PUROCHEM INDIA PVT. LTD., M/S PUROCHEM INDIA PVT. LTD., 94, SWYAM SIDH CO 94, SWYAM SIDH CO 94, SWYAM SIDH CO 94, SWYAM SIDH CO- -- -O OO OP SOCIETY, P SOCIETY, P SOCIETY, P SOCIETY, NEAR MADIPUR VILLAGE, NEAR MADIPUR VILLAGE, NEAR MADIPUR VILLAGE, NEAR MADIPUR VILLAGE, WEST PUNJABI BAGH, WEST PUNJABI BAGH, WEST PUNJABI BAGH, WEST PUNJABI BAGH, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 026. 110 026. 110 026. 110 026. 2. RESPONDENT : INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -14(4), NEW DELHI 14(4), NEW DELHI 14(4), NEW DELHI 14(4), NEW DELHI 110 002. 110 002. 110 002. 110 002. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR