K.S. CITY PVT. LTD.,INDORE V. A.C.I.T., CIRCLE-2, GWALIOR

ITA 17/AGR/2015

AI Insights

The case involves K.S. City Pvt. Ltd., which appealed against the addition of Rs. 25 Lacs to its income under Section 68 of the Income Tax Act, 1961, for the Assessment Year 2010-11. The addition was initially made by the Assessing Officer (AO) following a search action on the assessee group. The AO questioned the documentary evidence of a share capital issuance to Smt. Alka Bansal. The assessee contested this addition during the first appeal, providing various documents and citing a Supreme Court decision. However, the Commissioner of Income Tax (Appeals) upheld the addition, leading to the current appeal before the Tribunal. The Tribunal, after considering the facts and circumstances, decided in favor of the assessee, K.S. City Pvt. Ltd.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126446 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Other Referred Cases: Lovely Exports vs. CIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN KUMAR YADAV LD.
• Assessee Lawyers: SANJAY KUMAR; LD
• Keywords: Tax settlement; Commissioner; Commissioner of Income Tax; Transactions
• Section: 143(3); 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No. 17/Agr/2015 (िनधा \u0010रणवष\u0010 / Assessment Year:2010-11) K.S. City Pvt. Ltd. 301, Silver Arc Plaza, 20/1, New Palasia, Indore. बनाम/ Vs. ACIT, Circle-2, Gwalior \u0002थायीलेखासं./जीआइआरसं./PAN/GIR No. AACCK-8217-C (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Sh. Sanjay Kumar, CA – Ld. AR थ कीओरसे/Respondent by : Dr. Arun Kumar Yadav – Ld. CIT-DR सुनवाईकीतारीख/Date of Hearing : 19-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2010-11 arises out of an order passed by Ld. Commissioner of Income Tax (Appeals), Gwalior [CIT(A)] on 23-12-2014 in the matter of an assessment framed by Ld. AO u/s 143(3) of the Act on 22-11-2011. The sole grievance of the assessee is confirmation of addition u/s 68 for Rs.25 Lacs. Having heard rival submissions, the appeal is disposed-off as under. 2. Pursuant to search action on assessee group on 11-03-2010, Ld. AO, during the course of assessment proceedings, noted that the assessee issued share capital of Rs.25 Lacs (including share premium of Rs.24.95 Lacs) to Smt. Alka Bansal. The Ld. AO added the same u/s 68 for want of sufficient documentary evidences. 2 3. During first appeal, the assessee drew attention to the fact that the shareholder was regularly assessed to tax and the assessee furnished PAN of the shareholder. The assessee also furnished financial statement of the shareholder and referred to the decision of Hon’ble Apex Court in the case of Lovely Exports (319 ITR 5) to assail the impugned addition. The assessee also drew attention the fact that the assessment of shareholder was completed by same Ld. AO wherein no such addition were made. Another pertinent fact brought to the notice was that Shri Ramesh Chand of assessee-group, owned up the bank transactions of the shareholders which ultimately stood settled before Hon’ble Income Tax Settlement Commission (ITSC). However, Ld. CIT(A) confirmed the impugned addition against which the assessee is in further appeal before us. 4. The fact that the bank account of shareholder was owned up by Shri Ramesh Chand Garg which ultimately stood settled before ITSC, remain uncontroverted before us. Secondly, the assessment of the shareholder has been completed without making any such addition. Considering both these facts, we would hold that no such addition could be sustained in the hands of the assessee. Therefore, by deleting the same, we allow the appeal of the assessee. 5. The appeal stand allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) 4ा ियक सद5 /JUDICIAL MEMBER लेखा सद5 /ACCOUNTANT MEMBER Dated: 22.04.2025 3 आदेश की 7ितिलिप अ9ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु3/CIT 4. िवभागीय ितिनिध/DR 5. गाड9फाईल/GF ASSISTANT REGISTRAR ITAT AGRA "