ITO WARD - 14(1), New Delhi V. Kalyani Finvest Pvt Ltd, New Delhi

ITA 8698/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8145 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 06-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S. B. NAGAR
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” NEW DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER आयकर अपील सं./I.T. A. No.8698 & 8690/Del/2019 ( नधा रण वष / Assess ment Yea r : 2013-14) I T O W a r d - 1 4 ( 1 ) N e w D e l h i बनाम/ V s . K a l ya n i F in v e st P v t . L td . 1 1 0 1 - 1 1 0 3 , Pe a r l B u si n e ss Pa r k , N e t a ji S u b h a s h Pla c e , Pi ta m p u r a , N e w D e l h i - 1 1 0 0 3 4 थायी लेखा सं. /जीआइआर सं. / P A N / G I R N o . A A A C K 2 7 3 2 J (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Sh. Anuj Garg, Sr. DR यथ क ओर से / Respondent by : Sh. S. B. Nagar, CA Ms. Aabgina Chishti, Advocate स ु नवाई क तार ख / D a t e o f H e a r i n g 12.09.2022 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t 12.09.2022 आदेश/O R D E R PER PRADIP KUMAR KEDIA, AM: Both the captioned appeals have been filed at the instance of the assessee against the order of the Commissioner of Inco me Tax-5, New Delhi dated 29.08.2019 concerning AY 2013-14. 2. Both the appeals have arisen fro m the sa me cause of action i.e. addition under section 68 of the Act in quantum proceedings in ITA No.8690/Del/2019 and i mposition of penalty under sec tion 271 (1) (c) of the Act thereon in ITA No.8698/Del/2019 concerning A. Y.2013-14. 3. We shall first take up appeal in ITA No .8690/Del/2019 concerning quantum additions under section 68 of the Act. 4. The revenue has challenged the relief granted by the CIT( A) on an addition of Rs. 9,40,10,000/- mad e b y the AO on ac count of receipt of share application mone y b y invoking 68 of the Act. 5. The C IT( A) in the first appeal took note of the fact ual position and returned the finding in favour of the assessee as reproduced here under :- 6. We have heard the rival submissions and perused the orders passed by the AO and the CI T( A). We straightawa y notice the factual position that the share application mone y in question were not received or credited in the financial ye ar 2012-13 relevant to A. Y. 2013-14 in question but such mone y we re ad mittedl y c arried forward balance since last 3-4 ye ars. This being so the pri mar y condition for invoking the section 68 is not satisfied at the first instance Section 68 is applicable only qua the credit e ntries pertaining to the subject Assessment Year . The re med y, if any, lies with the revenue in the yea r in which the cre dit were actuall y r eceived and not in the subsequent year as is the cas e in the present appeal. The issue is no longer res-integra including CIT Vs . Usha Stud Agriculture Far ms Ltd. 301 ITR 384 (Del) (2 009) and settled in favour of the assessee by plethora of decisions. We thus see no infir mit y in the action of the CIT( A) in deleting the additions made b y the AO towards entries not found credited in the pr evious yea r relevant to A.Y.2013- 14 in question. We thus see no warrant to interfere with the first appellate order. 7. In the r esult, the a ppeal of the revenue in I TA No.8690/Del/2019 is dismissed. ITA No.8698/Del/2019 (A.Y.2013-14) 8. The revenue ha s challenged the deletion of penalty of Rs.3,05,01,668/- under Section 271 ( 1) (c) of the Act c orresponding to the addition of Rs.9,40,10,000/- on account of share application mone y under Section 68 of the Act chal lenged in ITA No.8690/Del/2019 (supra). 9. In the light of the discussion in quantum proceedings wher e the action of the AO was not found tenable on the touchstone of section 68 of the Act, the foundation for imposition of penalty corresponding to such untenable addition could naturally not survive. The CI T(A) thus has rightly r eversed and cancelled the penalty in question. We thus, see no reason to interfere wi th the order of the CIT( A) in the absence of an y in fir mit y therein. We thus, see no me rit in the appeal of the revenue. 10. In the r esult, the a ppeal of the revenue in I TA No.8698/Del/2019 is also dismissed. 11. In the co mbined result, both captioned appeals of revenue are dismissed. Sd/- Sd/- (ANUBHAV SH ARMA) (PRADI P K UM AR K EDIA) JUDI CIAL ME MBER ACCO UNTANT M EMBE R This Order was pronounced in the open court on 12/09/2022 Dated: /09/2022 *Neha, Sr. Private Secretary* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Date of dictation 13.09.2022 Date on which the typed draft is placed before the dictating Member 14.09.2022 Date on which the typed draft is placed before the Other Member 14.09.2022 Date on which the approved draft comes to the Sr. PS/PS 19.09.2022 Date on which the fair order is placed before the Dictating Member for pronouncement 19.09.2022 Date on which the fair order comes back to the Sr. PS/PS 19.09.2022 Date on which the final order is uploaded on the website of ITAT 19.09.2022 Date on which the file goes to the Bench Clerk 19.09.2022 Date on which the file goes to the Head Clerk