M/s. Galgotia Printers & Publishers Pvt. Ltd., New Delhi V. ACIT, Noida

ITA 6582/DEL/2014

• Counselvise Citation: 658220114 RSA 2014
• Duration Of Justice: 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 10-08-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 04-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NEERAJ JAIN CA SH P K MISHRA
• Keywords: Accommodation entries

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC - 2 , NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 6582 /DEL/201 4 AY: 20 10 - 11 GALGO T IA PRINTERS & PUBLISHERS P.LTD. VS. ACIT, CENTRAL CIRCLE 4405/6, PRAKASH APARTMENTS II NOIDA 5, ANSARI ROAD, DARYAGANJ NEW DELHI 110 002 PAN: AADCG 5153 G (APPELLANT) (RESPONDENT) APPELLANT BY : SH. NEERAJ JAIN, C.A. SH. P.K. MISHRA , C.A. RESPONDENT BY : S MT. RAKHI VIMAL, JCIT ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE LD.CIT(A) , NOIDA ORDER DT. 29.9.2014 PERTAINING TO THE A.Y. 20 10 - 11. 1.1. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT HE IS NOT PRESSING GROUND NO.2. THUS GROUND NO.2 IS DISMISSED AS NOT PRESSED . 1.2. GROUND NOS. 1, 4 AND 5 ARE GENERAL IN NATURE. THIS LEAVES US WITH GROUND NO.3. WHICH READS AS FOLLOWS. 3. THAT THE LD.CIT(A) HAS ERRED IN SUSTAINING THE ADDITION OF RS.15 LAKHS ON ACCOUNT OF SHARE CAPITAL AND SHARE PREMIUM MONEY RECEIVED WITHOUT THERE BEING ANY CORROBORATING MATERIAL ON RECORD. 2. THE ASSESSEE DURING THE YEAR RECEIVED SHARE CAPITAL ON FACE VALUE OF RS.1,50,000/ - AT A SHARE PREMIUM OF RS.13,50,000/ - . THE SHARE CAPITAL AND ITA NO. 6582/DEL/2014 A.Y. 2010 - 11 GALGOTIA PRINTERS & PUBLISHERS P.LTD. 2 SHARE PREMIUM WAS RECEIVED FROM: (A) M/S SHUBHAM FINSTOCK PVT.LTD., (B) MOHIT CONSULTANTS PVT.LTD. AND (C ) DPA FINVEST SERVICES LTD. BASED ON STATEMENT OF MRS. TARUN GOEL, THE AO MADE AN ADDITION OF RS.15 LAKHS THOUGH THE ASSESSEE FILED CONFIRMATION LETTERS BEFORE THE A.O. ON APPEAL THE FIRST APPELLATE AUTHORITY CONFIRMED THE SAME. AGGRIEVED, THE ASSESSEE IS BE FORE US. 3. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE THREE COMPANIES LISTED ABOVE, DO NOT BELONG TO TARUN GOEL GROUP OF COMPANIES. HE POINTED OUT THAT THIS SUBMISSION WAS MADE BEFORE THE FIRST APPELLATE AUTHORITY AND THAT THE FIRST APPELLATE AUTHORITY HAS NOT CONSIDERED THE SAME. HE REFERRED TO PAGE 10 OF THE ORDER OF THE FIRST APPELLATE AUTHORITY WHERE SUCH AVERMENT HAS BEEN MADE. 3.1. HE FURTHER ARGUED THAT , AS THE ASSESSEE HAS G IVEN CONFIRMATION LETTERS, THE BURDEN THAT LAY ON IT, HAS BEEN DISCHARGED AND HENCE THE ADDITION SHOULD BE QUASHED. 3.2. THE LD.SR.D.R. ON THE OTHER HAND RELIED ON THE ORDER OF THE A.O. AS WELL AS THE LD.CIT(A). 4. AFTER HEARING RIVAL CONTENTIONS , PE RUSING THE MATERIAL AVAILABLE ON RECORD AS WELL AS CASE LAWS CITED, I HOLD AS FOLLOWS . 4.1. THE ASSESSEE HAS CONTENDED BEFORE THE FIRST APPELLATE AUTHORITY THAT, NONE OF THE THREE COMPANIES, FROM WHOM SHARE CAPITAL ALONG WITH SHARE PREMIUM WAS RAISED DURING THE YEAR , WERE MANAGED OR CONTROLLED BY MR.TARUN GOEL. IT WAS FURTHER CONTENDED THAT , THE A.O. HAS NOT FOUND FAULT WITH THE DOCUMENTARY EVIDENCES FILED BY THE ASSESSEE , IN SUPPORT OF THE GENUINENESS OF THE SHARE CAPITAL ALONG WITH SHARE PREMIUM , RAISED DURING THE YEAR. ITA NO. 6582/DEL/2014 A.Y. 2010 - 11 GALGOTIA PRINTERS & PUBLISHERS P.LTD. 3 4.2. THE LD. FIRST APPELLATE AUTHORITY HAS NOT CONTROVERTED THE STATEMENT OF THE ASSESSEE. HE CONFIRMED THE ORDER OF THE A.O. MERELY BASED ON THE STATEMENT MADE BY ONE MR.TARUN GOEL AND ALSO ON THE BASIS OF MODUS OPERANDI , GENERALLY ADOPTED BY VARIOUS PERSONS WHO TAKE ACCOMMODATION ENTRIES. SUCH AN ORDER OF THE FIRST APPELLAT E AUTHORITY CANNOT BE SUSTAINED AS NO EVIDENCE HAS BEEN BROUGHT ON RECORD TO DEMONSTRATE THAT THIS ASSESSEE HAS ADOPTED SUCH MODUS OPERANDI. 4.3. BE IT AS IT MAY, THE ASSESSEE COMPANY HAS RECEIVED SHARE APPLICATION MONEY AT A HUGE PREMIUM. ON QUERY FROM THE BENCH , THE LD.COUNSEL FOR THE ASSESSEE COULD NOT GIVE ANY POSSIBLE EXPLANATION, JUSTIFYING THE HUGE SHARE PREMIUM. THUS, TO AFFORD AN OPPORTU NITY TO THE ASSESSEE, I DEEM IT FAIR AND PROPER TO SET ASIDE THE MATTER TO THE AO , WHO SHALL VERIFY THE CONTENTION OF THE ASSESSEE THAT , THESE THREE COMPANIES FROM WHOM SHARE APPLICATIONS WERE RECEIVED , DO NOT BELONG TO TARUN GOEL GROUP OF COMPANIES. 4.4. IN THE RESULT THE APPEAL OF THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH OCTOBER , 2015. SD/ - ( J. SUDHAKAR REDDY) ACCOUNTANT MEMBER DATED: THE 07 TH OCTOBER , 2015 *MANGA ITA NO. 6582/DEL/2014 A.Y. 2010 - 11 GALGOTIA PRINTERS & PUBLISHERS P.LTD. 4 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5.DR; 6.GUARD FILE BY ORDER ASST. REGISTRAR, ITAT