DCIT, Central Circle- II , Noida V. Tirupati Udyog Ltd., New Delhi

ITA 7158/DEL/2018

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 1052 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 08-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT GOEL
• Section: 32; 68; 6; 12; 90; 15; 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.7158/DEL/2018 Assessment Year 2009-10 Dy. Commissioner of Income Tax, Central Circle-II, Noida. v. M/s. Tirupati Udyog Ltd., D-14, IInd Floor, Preet Vihar, New Delhi. TAN/PAN: AABCT3941R (Appellant) (Respondent) Appellant by: Shri Amit Goel, Adv. Respondent by: Shri H.K. Chaudhary, CIT-DR Date of hearing: 23 05 2022 Date of pronouncement: 26 05 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The c apt io ne d ap p eal ha s be en f i le d at th e i ns ta nc e o f the ass es se e a ga in st t he or der of t he Co mmi s si on er of Inc o me Ta x (Ap pe al s) -I V, Ka n pur (‘CIT(A)’ in s h o rt) d ated 3 0 .0 8 .2 0 18 p assed u n d er Sectio n 1 5 3A r.w. Sectio n 1 43 (3 ) o f th e In co me Tax Act, 1 9 61 (th e Act) co n cern in g AY 2 0 09 -10 . 2 . Th e g ro u nd s o f ap p eal ra ised b y th e Rev en u e reads as u n d er: “ 1 . Wh e t h e r o n f a c t s a n d c i r c u m st a n c e s o f t h e c a s e , t h e L d . CI T (A ) h a s e r re d i n l a w b y d e l e t i n g a d d i t i o n o n g r o u n d s t ha t t h e s h a r e c a p i t a l a n d s e c u ri t y p re m i u m w a s re c e i v e d i n e a rl i er y e a r s wi t h o u t a p p r e c i a t i n g t h a t n o e v i d e n c e o f r e c e i p t o f t h e s e su m s i n e a r l i e r y e a r wa s p ro v i d e d b e f o r e t h e A . O . 2 . W h e t h e r o n f a c t s a n d i n t h e c i rc u m s t a n c e s o f t h e c a se , t h e L d . I.T.A. No.7158/Del/2018 2 CI T (A ) e r re d i n a d m i t t i n g a d d i t i o n a l e v i d e n c e s i n fo r m o f c o p y o f b a l a n c e sh e e t & P & L a c c o u n t o f a s s e s s e e f o r e a rl i e r y e a r s wi t h o u t g i v i n g t h e o p p o rt u n i t y u / s 4 6 A (2 ) o f I . T . R u l e s t o e x a m i n e t h e g e n u i n e n e s s & c o r r e c t n e s s o f su c h d o c u m e n t s , wh i c h w e r e n e v e r f u rn i s h e d b e f o r e t h e A . O . a n d h e n c e v i o l a t e d t h e p ri n c i p l e s o f a d m i ss i o n o f a d d i t i o n a l e v i d e n c e , a s l a i d d o w n i n CI T V s R a n j it Ku m a r 2 8 8 I T R 1 7 9 (G u j ), R a j K u m a r S r i m a l 1 0 2 I T R 51 5 (c a l l ) , G a n p a t R a i & S o n s L t d . 2 4 I T R 3 6 2 (B o m ). 3 . W h e t h e r o n f a c t s a n d c i rc u m st a n c e s o f t h e c a s e an d i n l a w, t h e L d . CI T (A ) e r r e d i n d e l e t i n g a d d i t i o n b a s e d o n c l a im m a d e b y a s s e ss e e f o r t h e f i r s t t i m e c l a i m i n g t h a t su c h re c ei p t s w e r e a c t u a l l y re c e i v e d i n e a rl i e r y e a r s, w h e n e v e n b e f o re CI T (A ), t h e a s se s se e d i d n o t f u rn i s h a n y d e t a i l s/ e v i d e n c e s a s t o w h i c h F . Y . t h e s e w e re a c t u a l l y re c e i v e d , wi t h o u t a p p re c i a t i n g t h a t a s p e r f a c t s re c o r d e d b y A . O . t h e p e r so n s c l a i m e d t o b e p r o v i d i n g su c h r ec e i p t s w e re f o u n d t o b e n o n - e x i s t e n t . 4 . T h a t t h e o r d e r o f t h e L d . CI T (A ) b e i n g e rr o n e o us i n l a w a n d o n f a c t s wh i c h n e e d s t o b e v a c a t e d a n d t h e o r d e r o f t he A . O . b e re s t o re d . 5 . T h a t t h e a p p e l l a n t c ra v e s l e a v e t o a d d o r a m e n d a n y o t h e r m o re g r o u n d o f a p p e a l a s st a t e a b o v e a s a n d wh e n n e e d s fo r d o i n g so m a y a r i s e . ” 3 . Brie fly st at ed , a search an d seizu re o p eratio n und er Sectio n 1 3 2 o f th e Act was co n du cted o n 11 .11 .2 0 14 at th e premises o f th e assesse e. Acco rd in g ly , n o tice u n d er Sect io n 1 53 A o f th e Act was issu ed an d th e assessmen t was co mp let ed u n d er Sectio n 1 53 A r.w. Sect io n 1 4 3 (3 ) o f th e Act . Vid e o rd er d ated 3 1 .1 2 .20 18 , th e Assessin g Officer mad e an ad d it i o n o f Rs.1 6 ,0 8 ,10 ,25 0 /- on acco u n t o f u n ex p lain ed cash cred it u n d er Sectio n 68 o f th e Act I.T.A. No.7158/Del/2018 3 all eg in g rece ip t o f b o g u s sh are cap i tal an d sh are pre miu m fro m n o n -ex istin g b o g us co mp an ies/ co n cern s. On ch allen g e, th e First Ap p ellate Au th o rit y rev ersed th e a ct io n o f th e Assess i n g Offi cer o n th e g rou nd th at sh are cap i ta l/p re miu m/ ap p lic at ion mo n ey was n o t receiv ed in th e Fin an cia l Year 2 0 0 8 -09 relev an t to Assessmen t Year 2 0 09 -10 an d th erefo re Se ct io n 6 8 h as n o app licatio n . Th e relev an t p arag rap h d ealin g with th e issu e b y th e CIT(A) read s as u n d er: 6 . 1 G r o u n d n o . 4 t o 6 p e r t a i n t o a d d i t i o n o f R s. 1 6, 0 8 , 1 0 , 2 5 0 / - o n a c c o u n t o f u n e x p l a i n e d c a s h c re d i t u / s 6 8 o f t h e A c t . A s p e r A s se s si n g O f f i c e r, a p p e l l a n t c o m p a n y h a s r e c e i v e d Rs. 3 , 4 9 , 9 7 , 7 5 0 / - A R s. 1 2 , 5 8 , 1 2 , 5 0 0 / - o n a c c o u n t o f sha r e c a p i t a l a n d s h a re p re m i u m re s p e c t i v e l y , d u r i n g t h i s re l e v a nt a s se s s m e n t y e a r . I t i s o b se r v e d b y t h e A . O . , d u r i n g t h e c o u r s e o f r e - a s s e ss m e n t p r o c e e d i n g s, u / s 1 5 3 A o f t h e A c t , a p p e l la n t c o u l d n o t su b st a n t i a t e t h e s a m e , t h e re f o r e , a d d i t i o n o f R s . 16 , 0 8 , 1 0 , 2 5 0 / - i s m a d e b y t h e A . O . 6 . 2 I n t h i s re g a r d , a p p e l l a n t h a s f i l e d i t w ri t t e n s u b m i s si o n s , wh i c h i s r e p r o d u c e d a s u n d e r: - " A l l t h e g r o u n d s , i n s u b s t a n c e r e l a t e t o a d d i t i o n of R s . 1 6 0 8 1 0 2 5 0 / - m a d e b y t h e a s s e s s i n g o f f i c e r u / s 6 8 o f I n c o m e T a x A c t , 1 9 6 1 i n r e s p e c t o f s h a r e c a p i t a l / s h a r e p r e m i u m . Wi t h o u t p r e j u d i c e t o t h e f a c t t h a t t h e a d d i t i o n m a de b y t h e a s s e s s i n g o f f i c e r i s b e y o n d t h e s c o p e o f p r o v i s i o n s o f s e c t i on 1 5 3 A o f t h e A c t ( a s i t i s n o t b a s e d u p o n a n y s e i z e d m a t e r i a l a n d a s o n d a t e o f s e a r c h , n o a s s e s s m e n t f o r t h e y e a r w a s p e n d i n g ) , i t i s h u m b l y s u b m i t t e d t h a t e v e n o t h e r w i s e o n f a c t s , t h e a d d i t i o n m a d e b y t h e a s s e s s i n g o f f i c e r i s g r o s s l y e r r o n e o u s . D u r i n g t h e y e a r u n d e r c o n s i d e r a t i o n , t h e r e i s n o i n c r e a s e i n t h e s h a r e c ap i t a l / s h a r e I.T.A. No.7158/Del/2018 4 p r e m i u m d u r i n g t h e y e a r . T h e a m o u n t o f s h a r e c a p i t al ( R s . 3 4 9 9 7 5 0 0 / - w r o n g l y m e n t i o n e d b y A . O . a s R s . 3 4 9 9 7 7 50 / - ) a n d s h a r e p r e m i u m ( R s . 1 2 5 8 1 2 5 0 0 / - ) i s t h e o p e n i n g b a l an c e p r i o r t o 3 1 . 0 3 . 2 0 0 8 . T h e r e i s n o m o v e m e n t / c h a n g e i n t h e am o u n t o f s h a re c a p i t a l / s h a r e p r e m i u m d u r i n g t h e F . Y . 2 0 0 8 - 0 9 ( A . Y . 2 0 0 9 - 1 0) i . e . t h e y e a r u n d e r a p p e a l . A c c o r d i n g l y , t h e a d d i t i o n m a d e b y t h e A . O . i s t o t a l l y a r b i t r a r y a n d e r r o n e o u s a n d t h e s a m e i s l i a b l e t o be d e l e t e d . I t i s a l s o w o r t h w h i l e t o p o i n t o u t t h a t o r i g i n a l a ss e s s m e n t f o r t h e A . Y . 2 0 0 9 - 1 0 w a s m a d e u / s 1 4 3 ( 3 ) a n d c o p y o f a s s e s sm e n t o r d e r i s e n c l o s e d . S o y o u a r e r e q u e s t e d t o a l l o w t h e a p p e a l . ” 6 . 3 T h e u n d e r si g n e d h a s c a r e f u l l y g o n e t h ro u g h t h e a s se s sm e n t o r d e r , w ri t t e n su b m i s si o n a s w e l l a s v e rb a l a rg u m e nt s o f t h e L d . A . R . I t i s s e e n t h a t , A . O . h a s m e n t i o n e d t h e l i st of 9 0 sh a re h o l d e r s i n t h e a s se s s m e n t o rd e r , f r o m w h o m t h e sh a re c a p i t a l / p r e m i u m i s a l l e g e d t o h a v e b e e n re c e i v e d b y t h e a p p e l l a n t c o m p a n y . H o w e v e r, i t i s n o t sh o wn h o w , i t p e rt a i n s/ r e l a t e s t o t h i s re l e v a n t a s se s sm e n t y e a r. D u ri n g t h e c o u r s e o f t h i s a p p e a l p r o c e e d i n g s, i t wa s s u b m i t t e d t h a t , n o sh a re c a p i t a l / p r e m i u m / a p p l i c a t i o n m o n e y wa s re c e i v ed b y t h e a p p e l l a n t c o m p a n y , d u ri n g t h i s r e l e v a n t A . Y . 2 0 0 9 - 10 . T h i s f a c t i s a l s o , c o r r o b o r a t e d f ro m t h e f i n a n c i a l s t a t e m e n t s su b m i t t e d b y t h e a p p e l l a n t . P e ru s a l o f p a g e - 5 o f t h e p a p e r b o o k su b m i t t e d b y t h e a p p e l l a n t , w h i c h , sh o ws t h e b a l a n c e s h e e t o f t he a p p e l l a n t c o m p a n y a s o n 3 1 . 0 3 . 2 0 0 9 , r e v e a l t h a t , t h e re i s n o c h a n g e i n sh a re c a p i t a l / p re m i u m / a p p l i c a t i o n m o n e y re c e i v e d a s o n 3 1 . 0 3 . 2 0 0 8 a n d 3 1 . 0 3 . 2 0 0 9 . F u r t h e r , t h e a p p e l l a n t ha s su b m i t t e d a n a f f i d a v i t o n 2 4 . 0 8 . 2 0 1 8 , st a t i n g t h e r e i n . t h a t , d u ri n g t h e F . Y . 2 0 0 8 - 0 9 r e l e v a n t t o t h i s A . Y . 2 0 0 9 - 1 0 , t h e a p p e l l a nt h a s n e i t h e r I.T.A. No.7158/Del/2018 5 re c e i v e d n o r a l l o t t e d a n y a m o u n t o f sh a r e c a p i t a l / p r e m i u m / a p p l i c a t i o n m o n e y . T h u s, i t i s c o n cl u d e d t h a t , t h e a d d i t i o n m a d e b y A . O . o n a c c o u n t sh a r e c a p i t a l /p re m i u m / a p p l i c a t i o n m o n e y d o e s n o t r e l a t e t o t h i s re l e v a n t a s s e s sm e n t y e a r . T h e r e f o r e , a d d i t i o n m a d e b y A ss e s s i n g O f f i c e r c a n n o t b e su st a i n e d a n d g ro u n d s o f a p p e a l o f t h e a p p e l l a n t a re a l l o we d . ” 4 . Ag g riev ed by th e reli e f g ran ted b y th e CIT(A), th e R ev en u e h as p referred ap p e al b e fo re th e Trib u n al. 5 . Ld . DR fo r th e Rev en u e reli ed u p o n th e o rd er o f th e Assessin g Offi cer. 6 . Per co n tra, ld . co u n sel fo r th e asses s ee re ferred to th e p ap er b o ok sh o wing y ear-wise in cre ase in s h are cap i tal sup p o rted b y th e au d ited fin an cia l sta te men t to su b mit th a t asse ssee h a s receiv ed sh are cap ita l/sh are p remiu m fro m Fin an cia l Year 2 001 -02 on ward s u p to Assessmen t Year 2 00 4 -0 5 and th ere is n o in creas e th erea ft er in th e sh are cap i ta l/sh are p re miu m. I t was fu rth er su b mi t ted th at th ere was n o rece ip t o n acco u n t o f sh are cap i ta l/shar e p remiu m d u rin g th e Fin an ci al Year 2 0 0 8 -0 9 relev an t to Asse ss men t Year 2 0 09 -10 in q u estio n . It was th u s con ten d ed th at in th e ab sen ce o f an y cred it in th e b o ok s o f acco u nt to ward s sh are cap ita l/ sh are p remiu m d u rin g th e y ear, Sec t io n 6 8 d o es n o t co me in to p lay at al l an d th e Assessin g Offic er h ad wro n g ly in vo k ed p ro v isio n s o f Sect io n 6 8 an d mad e u n lawfu l ad d itio n wh ich h as b een rig h tly rev ersed b y th e CI T(A). 7 . On con sid eratio n of th e factu a l matr i x , we tak e n o te o f y ear- wise rec eip t as t ab u lated in th e p ap er b o o k fil ed by Assessee . I.T.A. No.7158/Del/2018 6 F i n a n c i a l Y e a r S h a r e C a p i t a l S e c u r i t y P r e m i u m 2 0 0 1 - 0 2 5 , 0 0 , 0 0 0 - 2 0 0 2 - 0 3 1 , 2 1 , 7 7 , 5 0 0 3 , 6 5 , 3 2 , 5 0 0 2 0 0 3 - 0 4 1 , 2 0 , 8 0 , 0 0 0 4 , 8 3 , 2 0 , 0 0 0 2 0 0 4 - 0 5 1 , 0 2 , 4 0 , 0 0 0 4 , 0 9 , 6 0 , 0 0 0 T o t a l a s o n 3 1 / 0 3 / 2 0 0 5 3 , 4 9 , 9 7 , 5 0 0 1 2 , 5 8 , 1 2 , 5 0 0 8 As n o ted ab ov e, it is th e c ase o f th e a ssessee that Se ct io n 68 ap p lies o n ly to th e cred it / rece ip ts en tered in th e b o o k s d u rin g th e Fin an cia l Year in q u estio n an d its o p eratio n is n o t ex ten d ed to o th er assess men t y ears. Th is p o sit i o n is fo rt i fi ed b y p leth o ra o f ju d icia l p rec ed en ts in clu d in g CIT vs . P.K . Mo h a n ka la (2 0 07 ) 2 91 ITR 2 78 (S C). It is an ad mi tt ed fa ctu al p o sit io n th at th e sh are cap it al /sh are p remiu m in d isp u te h as b een receiv ed in th e ear lier y ears an d n o amo u n t wh atso ev er h as b een cred it ed in th e b o o k s o f acco u n t d u rin g the Fin an cia l Year 2 0 08 -09 in q u estio n . In th is fac tu al an d leg al ma trix , th e CIT(A), in o u r v iew, h as rig h tly co n clu d ed on in app licab i l ity o f Sec ti o n 6 8 o f th e Act t o th e fact s o f th e case . We th u s see n o erro r in th e co n clu sio n d rawn by th e CIT(A) in fav o u r of th e a ssesse e. Hen ce, we d ec lin e to i n terfere . 8 . In th e resu l t, th e a p p eal o f th e Rev en u e is d is miss ed . Order pronounced in the open Court on 26/05/2022. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /05/2022 Prabhat