M/s. Radharaman Investment Pvt. Ltd., Delhi V. DCIT, New Delhi

ITA 6451/DEL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97236 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 13-08-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 25-11-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: GARIMA JAIN SENIOR
• Assessee Lawyers: SIDHARTH
• Keywords: Share purchase agreement

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 SMC SMC SMC SMC- -- -1 11 1 : 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 PRESIDENT PRESIDENT PRESIDENT ITA NO ITA NO ITA NO ITA NO . .. . 6451/DEL/2014 6451/DEL/2014 6451/DEL/2014 6451/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2005 2005 2005 2005 - -- - 06 0606 06 M/S RADHARAMAN INVESTMENT M/S RADHARAMAN INVESTMENT M/S RADHARAMAN INVESTMENT M/S RADHARAMAN INVESTMENT PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., AN ANAN AN- -- -2, SHALIMAR BAGH, 2, SHALIMAR BAGH, 2, SHALIMAR BAGH, 2, SHALIMAR BAGH, DELHI DELHI DELHI DELHI 110 088. 110 088. 110 088. 110 088. PAN : AACCR4422J. PAN : AACCR4422J. PAN : AACCR4422J. PAN : AACCR4422J. V VV V S. S.S. S. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -15(1), 15(1), 15(1), 15(1), NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 002. 110 002. 110 002. 110 002. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SIDHARTH, CA. RESPONDENT BY : MS. GARIMA JAIN, SENIOR DR. DATE OF HEARING : 13.08.2015 13.08.2015 13.08.2015 13.08.2015 DATE OF PRONOUNCEMENT : 08.09.2015 08.09.2015 08.09.2015 08.09.2015 ORDER ORDER ORDER ORDER THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2005-0 6 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XVIII, NEW DELHI DATED 18 TH SEPTEMBER, 2014. 2. THE EFFECTIVE GROUND OF APPEAL OF THE ASSESSEE READS AS UNDER:- THAT ON THE FACTS AND AS PER THE CIRCUMSTANCES OF THE CASE, BOTH THE LOWER AUTHORITIES I.E. AO & CIT(A), HA VE ERRED IN ASSESSING THE INCOME OF THE APPELLANT AT RS.5,23,230/- AS AGAINST RETURNED INCOME OF RS.10,730/- . AS SUCH THE AGGREGATE ADDITIONS MADE OF RS.5,12,500/- MAY PLEASE BE DELETED. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASS ESSEE HAS FILED SUFFICIENT EVIDENCE TO PROVE THAT THE SHARE CAPITAL SUBSCRIPTION WAS GENUINE AND HAS PROVED THE IDENTITY A ND CREDITWORTHINESS OF THE SHARE SUBSCRIBER AND THE GENUINE NESS OF THE ITA-6451/DEL/2014 2 TRANSACTION. HE REFERRED TO THE COPIES OF THE RELEVA NT DOCUMENTARY EVIDENCE FILED BEFORE THE ASSESSING OFFICER AND THE CIT (A) AND A COPY OF THE SAME HAS BEEN FILED BEFORE THE TRIBUNAL IN THE FORM OF SPECIFIC CONFIRMATION OF M/S STELLAR INVESTMENT LTD., BANK STAT EMENT, INCOME TAX RETURN, ANNUAL ACCOUNTS, CERTIFICATE OF INCORPOR ATION OF M/S STELLAR INVESTMENT LTD., LATEST ROC PRINTOUT SHOWING THAT THE COMPANY EXISTS, COPY OF PAN, SHARE APPLICATION LETTER, RESOLUTION OF BOARD MEETING OF M/S STELLAR INVESTMENT LTD. FOR SUBSCRIPTION IN SHARES OF THE ASSESSEE, FORM NO.2 FILED WITH ROC WITH REFERENCE TO ISSUANCE O F SHARES TO M/S STELLAR INVESTMENT LTD., COPY OF MINUTE BOOK OF BOAR D OF DIRECTORS OF THE ASSESSEE APPROVING APPLICATION FOR ISSUANCE OF SHARES T O M/S STELLAR INVESTMENT PVT.LTD., SHARE CERTIFICATE OF 50,000 SHARE S ISSUED TO M/S STELLAR INVESTMENT LTD. AND LIST OF EQUITY SHAREHOLDER S OF THE ASSESSEE AS ON 2004 & 2005. 4. LEARNED DR HAS OPPOSED THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. SHE REFERRED TO THE RELEVANT PORTION OF THE ASSESSMENT ORDER AND THE ORDER OF LEARNED CIT(A) IN SUPP ORT OF THE CASE OF THE REVENUE. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PERU SED THE ORDER OF THE AO AND THE LEARNED CIT(A). FROM A PER USAL OF THE EVIDENCE FILED BY THE ASSESSEE IN EVIDENCE OF THE IDENTITY AND CREDITWORTHINESS OF THE SHARE SUBSCRIBER AND THE GENUINENESS OF THE TRANSA CTION, WHICH WAS FILED BEFORE THE ASSESSING OFFICER AND THE CIT(A) AN D ALSO A COPY HAS BEEN FILED BEFORE THE TRIBUNAL FROM PAGES 30 TO 5 8 OF THE COMPILATION, I HOLD THAT THE ASSESSEE HAS DISCHARGED ITS O NUS BY PROVING THE IDENTITY AND CREDITWORTHINESS OF THE SHAR E SUBSCRIBER AND ALSO THE GENUINENESS OF THE TRANSACTION OF SHARE APPLIC ATION MONEY. THE REVENUE HAS FAILED TO POINT OUT ANY VALID REASON TO DISCREDIT THE EVIDENCE PRODUCED BY THE ASSESSEE. IN THESE FACTS OF THE CASE, I AM OF ITA-6451/DEL/2014 3 THE VIEW THAT NO CASE OF ADDITION COULD BE MADE OUT ON BEHALF OF THE REVENUE AND, ACCORDINGLY, GROUND NO.1 OF THE ASSESSEE I S ALLOWED. 6. WITH REGARD TO THE LEGAL GROUND OF THE ASSESSEE REGA RDING VALIDITY OF PROCEEDINGS INITIATED U/S 148, I AM NOT A DJUDICATING THE SAME SINCE THE ASSESSEE HAS SUCCEEDED ON MERITS OF THE ADDIT ION. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY AL LOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 8 TH SEPTEMBER, 2015. SD/- (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S RADHARAMAN INVESTME M/S RADHARAMAN INVESTME M/S RADHARAMAN INVESTME M/S RADHARAMAN INVESTMENT PVT.LTD., NT PVT.LTD., NT PVT.LTD., NT PVT.LTD., AN ANAN AN- -- -2, SHALIMAR BAGH, DELHI 2, SHALIMAR BAGH, DELHI 2, SHALIMAR BAGH, DELHI 2, SHALIMAR BAGH, DELHI 110 088. 110 088. 110 088. 110 088. 2. RESPONDENT : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -15(1), NEW DELHI 15(1), NEW DELHI 15(1), NEW DELHI 15(1), NEW DELHI 110 002. 110 002. 110 002. 110 002. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR