ACIT, New Delhi v. M/s Rapid Diagnostics Pvt. Ltd.,, New Delhi

ITA 2848/DEL/2011 | 2003-2004
Pronouncement Date: 25-10-2013 | Result: Dismissed

Appeal Details

RSA Number 284820114 RSA 2011
Assessee PAN AAACR4366H
Bench Delhi
Appeal Number ITA 2848/DEL/2011
Duration Of Justice 2 year(s) 4 month(s) 23 day(s)
Appellant ACIT, New Delhi
Respondent M/s Rapid Diagnostics Pvt. Ltd.,, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 25-10-2013
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 25-10-2013
Date Of Final Hearing 15-10-2013
Next Hearing Date 15-10-2013
Assessment Year 2003-2004
Appeal Filed On 01-06-2011
Judgment 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 F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI A.D.JAIN A.D.JAIN A.D.JAIN A.D.JAIN JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO.2848/DEL/2011 2848/DEL/2011 2848/DEL/2011 2848/DEL/2011 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2003 2003 2003 2003- -- -04 0404 04 ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX INCOME TAX INCOME TAX CIRCLE CIRCLE CIRCLE CIRCLE- -- -15(1) 15(1) 15(1) 15(1) C.R.BUILD C.R.BUILD C.R.BUILD C.R.BUILDING I.P. ESTATE ING I.P. ESTATE ING I.P. ESTATE ING I.P. ESTATE NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S RAPID DIAGNOSTICS PVT.LTD. M/S RAPID DIAGNOSTICS PVT.LTD. M/S RAPID DIAGNOSTICS PVT.LTD. M/S RAPID DIAGNOSTICS PVT.LTD. B BB B- -- -159 GUJRANWALA TOWN 159 GUJRANWALA TOWN 159 GUJRANWALA TOWN 159 GUJRANWALA TOWN- -- -1 1 1 1 NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : PAN : PAN : PAN : AAACR4366H. AAACR4366H. AAACR4366H. AAACR4366H. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SATPAL SINGH SR.DR. RESPONDENT BY : SHRI SURESH GUPTA CA. ORDER ORDER ORDER ORDER PER PER PER PER G. G. G. G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VP VPVP VP : : : : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XVIII NEW DELHI DATED 24 TH FEBRUARY 2011 FOR THE AY 2003-04. 2. GROUND NO.1 OF THE REVENUES APPEAL READS AS UND ER:- THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AN D IN LAW THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITI ON OF RS.23 50 000/- MADE BY THE AO U/S 68 OF THE IT ACT 1961. 3. THE OTHER GROUNDS RAISED BY THE REVENUE ARE ONLY ARGUMENTS IN SUPPORT OF ABOVE GROUND NO.1. 4. THE FACTS OF THE CASE ARE THAT DURING THE ACCOUN TING YEAR RELEVANT TO ASSESSMENT YEAR UNDER CONSIDERATION TH E ASSESSEE COMPANY HAD RECEIVED SHARE APPLICATION MONEY OF ` 23 50 000/- FROM THE FOLLOWING PARTIES:- ITA-2848/DEL/2011 2 S.NO. NAME OF SHARE HOLDER AMOUNT 1. SUNITA GUPTA 3 00 000/- 2. PURNENDU KUMAR GUPTA 3 00 000/- 3. USHA RANI 2 00 000/- 4. JEETENDER AGGARWAL 2 00 000/- 5. DEEP CHAND GUPTA 2 50 000/- 6. DEVI RAM GOYAL 3 50 000/- 7. AMIT JAIN 2 50 000/- 8. MUKESH JAIN 2 50 000/- 9. VISHAL AGARWAL 2 50 000/- --------------- 23 50 000/- ---------------- 5. THE ASSESSEE HAD FURNISHED THE CONFIRMATION AS W ELL AS OTHER EVIDENCE IN SUPPORT OF ABOVE SHARE APPLICATION MONE Y. HOWEVER THE ASSESSING OFFICER WAS OF THE OPINION THAT THE INCOM E/CAPITAL OF THE ABOVE PERSONS WAS NOT SUFFICIENT AND THEREFORE HE ARRIVED AT THE CONCLUSION THAT THE ASSESSEE WAS UNABLE TO DISCHARG E THE ONUS OF PROVING THE CASH CREDIT IN HIS BOOKS. ON APPEAL L EARNED CIT(A) ACCEPTED THE ASSESSEES CONTENTION AND DELETED THE ADDITION OF ` 23 50 000/- MADE BY THE ASSESSING OFFICER. HENCE THIS APPEAL BY THE REVENUE. 6. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED THE MATERIAL PLACED BEFORE US. FROM PAGE 34 TO 108 OF THE PAPER BOOK THE ASSESSEE HAS GIVEN THE COPY OF ASSESSEES LETTER DA TED 18.11.2010 FURNISHED BEFORE THE ASSESSING OFFICER ALONG WITH T HE EVIDENCE IN SUPPORT OF THE SHARE APPLICATION MONEY RECEIVED BY IT. FOR READY REFERENCE WE REPRODUCE HEREIN BELOW THE ASSESSEES LETTER DATED 18.11.2010 :- TO THE INCOME TAX OFFICER WARD 15(2) NEW DELHI. ITA-2848/DEL/2011 3 SUB :- RAPID DIAGNOSTIC PVT.LTD. ASSESSMENT YEAR 2003-2004 PAN NO.AAACR4366H. REF :- DETAILS & INFORMATION RESPECTED MADAM WE ARE ENCLOSING HEREWITH FOLLOWING DETAILS & INFORMATION AS REQUIRED BY YOUR GOODSELF IN THE NOT ICE. 1. SUNITA GUPTA A) CONFIRMATION FOR INVESTMENT IN SHARES. B) INCOME TAX RETURN COPY FOR ASS. YEAR C) IDENTITY PROOF PHOTOCOPY. D) PAN PROOF. E) BALANCE SHEET OF MRS. SUNITA GUPTA F) COPY OF BANK STATEMENT. G) SOURCE OF FUND FROM WHERE SHE INVESTED. 2. PURENDU KUMAR GUPTA A) CONFIRMATION FOR INVESTMENT IN SHARES. B) INCOME TAX RETURN COPY FOR ASS. YEAR. C) IDENTITY PROOF PHOTOCOPY. D) PAN PROOF. E) BALANCE SHEET OF MR. PURENDU KUMAR GUPTA. F) COPY OF BANK STATEMENT. G) SOURCE OF FUND FROM WHERE HE INVESTED. 3. JITENDER AGGRAWAL A) CONFIRMATION FOR INVESTMENT IN SHARES. B) INCOME TAX RETURN COPY FOR ASS. YEAR 2001-2002. C) IDENTITY PROOF PHOTOCOPY OF HIS RATION CARD. D) PAN PROOF. E) BALANCE SHEET OF MR. JITENDER AGGARWAL. F) COPY OF BANK STATEMENT. G) SOURCE OF FUND FROM WHERE HE INVESTED. 4. USHA RANI A) CONFIRMATION FOR INVESTMENT IN SHARES. B) INCOME TAX RETURN COPY FOR ASS. YEAR 2002-2003. C) IDENTITY PROOF PHOTOCOPY OF HIS RATION CARD. D) PAN PROOF. E) BALANCE SHEET OF MRS. USHA RANI. F) COPY OF BANK STATEMENT. G) SOURCE OF FUND FROM WHERE SHE INVESTED. ITA-2848/DEL/2011 4 5. DEEP CHAND GUPTA A) CONFIRMATION FOR INVESTMENT IN SHARES. B) INCOME TAX RETURN COPY FOR ASS. YEAR 2003-2003. C) IDENTITY PROOF PHOTOCOPY OF HIS ELECTION IDENTITY CARD. D) PAN PROOF. E) BALANCE SHEET OF MR. DEEP CHAND GUPTA. F) COPY OF BANK STATEMENT. G) SOURCE OF FUND FROM WHERE HE INVESTED. 6. DEVI RAM GOYAL A) CONFIRMATION FOR INVESTMENT IN SHARES. B) INCOME TAX RETURN COPY FOR ASS. YEAR 2002-2003. C) IDENTITY PROOF PHOTOCOPY OF HIS ELECTION IDENTITY CARD. D) PAN PROOF. E) BALANCE SHEET OF MR. DEVI RAM GOYAL. F) COPY OF BANK STATEMENT. G) SOURCE OF FUND FROM WHERE HE INVESTED. 7. AMIT JAIN A) CONFIRMATION FOR INVESTMENT IN SHARES. B) INCOME TAX RETURN COPY FOR ASS. YEAR 2001-2002 & 2002-2003. C) IDENTITY PROOF PHOTOCOPY OF HIS RATION CARD. D) PAN PROOF. E) BALANCE SHEET OF MR. AMIT JAIN. F) COPY OF BANK STATEMENT. G) SOURCE OF FUND FROM WHERE HE INVESTED. 8. MUKESH JAIN A) CONFIRMATION FOR INVESTMENT IN SHARES. B) INCOME TAX RETURN COPY FOR ASS. YEAR 2001-2002 & 2002-2003. C) IDENTITY PROOF PHOTOCOPY OF HIS RATION CARD. D) PAN PROOF. E) BALANCE SHEET OF MR. MUKESH JAIN. F) COPY OF BANK STATEMENT. G) SOURCE OF FUND FROM WHERE HE INVESTED. 9. VISHAL AGGARWAL A) CONFIRMATION FOR INVESTMENT IN SHARES. B) INCOME TAX RETURN COPY FOR ASS. YEAR. C) IDENTITY PROOF PHOTOCOPY. D) PAN PROOF. E) BALANCE SHEET OF MR. VISHAL AGGARWAL. ITA-2848/DEL/2011 5 F) COPY OF BANK STATEMENT. G) SOURCE OF FUND FROM WHERE HE INVESTED. 7. FROM THE ABOVE IT IS EVIDENT THAT THE ASSESSEE HAS GIVEN THE CONFIRMATION IN RESPECT OF ALL THE CREDITORS COPY OF THEIR INCOME TAX RETURNS IDENTITY PROOF PAN PROOF BALANCE SHEET COPY OF BANK STATEMENT AS WELL AS SOURCE OF FUNDS FROM WHERE THE Y INVESTED IN THE SHARE CAPITAL. THE ASSESSING OFFICER DID NOT ACCEP T THE SAME BECAUSE IN HIS OPINION THE RETURNED INCOME TAX PAID OR TH E CAPITAL OF THE SHARE APPLICANTS WERE NOT SUFFICIENT. IN THIS REGARD TH E ASSESSING OFFICER HAD PREPARED THE CHART OF ALL THE CREDITORS WHICH IS TH ERE AT PAGE 3 OF THE ASSESSMENT ORDER AND FOR READY REFERENCE THE SAME IS REPRODUCED BELOW:- NO. NAME OF THE LENDER RETURNED INCOME AY 2002- 03 TAX PAID CAPITAL INTEREST CHARGED ON LOANS AND ADVANCE INVESTMENT IN SHARE CAPITAL AVERAGE DAILY BALANCE TOTAL CREDITS/DEBITS 1 SUNITA GUPTA 56400/- NIL 695060/- NIL 300000/- 1100 11 50 000/- 2 PURNENDU KUMAR GUPTA 61 680/- 1 336/- 4 73 840/- NIL 300000/- 1100 9 50 000/- 3 USHA RANI 84 750/- 950/- 9 45 674/- NIL 200000/- 1500 12 56 125/- 4 DEVI RAM GOYAL 61350/- 1295/- 12 09 871/- NIL 350000/- 2000 13 50 000/- 5 JITENDER AGGARWAL 57 500/- 410/- 9 60 393/- NIL 4 25 000/- 1135/- 7 5 0 000/- 6 DEEP CHAND GUPTA 61 550/- 1416/- 9 22 474/- NIL 2 50 000/- 1149/- 7 50 000/- 7 AMIT JAIN 78 310/- 1000/- 12 35 964/- NIL 7 80 00 0/- 1943/- 6 00 000/- 8 MUKESH JAIN 70 305 1000/- 11 98 259/- NIL 6 75 000/- 1312/- 9 5 0 000/- 9 VISHAL AGGARWAL 80 159/- 1000/- 11 34 395/- NIL 2 50 000/- 1113/- 1 2 00 000/- 8. HOWEVER AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDES AND THE FACTS OF THE CASE WE ARE UNABLE TO AGREE WITH THE ASSESSING ITA-2848/DEL/2011 6 OFFICER. IT IS A SETTLED LAW THAT THE ONUS IS UPON THE ASSESSEE TO PROVE THE CREDIT IN HIS BOOKS OF ACCOUNT. TO DISCHARGE S UCH ONUS THE ASSESSEE HAS TO ESTABLISH (I) THE IDENTITY OF THE CREDITOR (II) THE CREDITWORTHINESS OF THE CREDITOR AND (III) GENUINEN ESS OF THE TRANSACTION. ALL THE CREDITORS ARE ASSESSED TO INC OME TAX THEIR PERMANENT ACCOUNT NUMBERS AS WELL AS THE COPY OF TH E INCOME TAX RETURNS WERE FURNISHED BEFORE THE ASSESSING OFFICER . THEREFORE THE IDENTITY OF THE SHARE APPLICANTS CANNOT BE DOUBTED. ALL THE MONEY HAS COME BY CHEQUE ALL THE SHARE APPLICANTS HAVE CONFI RMED THE SAME AND THE AMOUNT IS DULY DEBITED IN THE SHARE APPLICANTS BANK ACCOUNT. THEREFORE THE GENUINENESS OF THE TRANSACTIONS ALSO CANNOT BE DOUBTED. THE ASSESSING OFFICER MAINLY DOUBTED THE CREDITWORT HINESS OF THE CREDITORS. HOWEVER WE FIND THAT THE CAPITAL OF EA CH AND EVERY CREDITOR IS MUCH MORE THAN THE INVESTMENT MADE BY HIM IN THE SHARE CAPITAL. THE AMOUNT HAS DULY BEEN DISCLOSED IN THEIR BALANCE SHEET WHICH IS ALSO FURNISHED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER. IN VIEW OF THE TOTALITY OF THE ABOVE FACTS WE ARE OF THE OPIN ION THAT THE ASSESSEE WAS ABLE TO DISCHARGE THE ONUS OF PROVING THE CREDI T IN THE FORM OF SHARE APPLICATION MONEY OF ITS BOOKS OF ACCOUNT. W E THEREFORE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LEARNED CIT( A). THE SAME IS SUSTAINED. 9. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 25 TH OCTOBER 2013. SD/- SD/- ( (( (A.D.JAIN A.D.JAIN A.D.JAIN A.D.JAIN) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 25.10.2013 VK. ITA-2848/DEL/2011 7 COPY FORWARDED TO: - 1. APPELLANT : ASSISTANT COMMISSIONER OF INCOME TAX ASSISTANT COMMISSIONER OF INCOME TAX ASSISTANT COMMISSIONER OF INCOME TAX ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE CIRCLE CIRCLE CIRCLE- -- -15(1) C.R.BUILDING I.P. ESTATE 15(1) C.R.BUILDING I.P. ESTATE 15(1) C.R.BUILDING I.P. ESTATE 15(1) C.R.BUILDING I.P. ESTATE NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. 2. RESPONDENT : M/S RAPID M/S RAPID M/S RAPID M/S RAPID DIAGNOSTICS PVT.LTD. DIAGNOSTICS PVT.LTD. DIAGNOSTICS PVT.LTD. DIAGNOSTICS PVT.LTD. B BB B- -- -159 GUJRANWALA TOWN 159 GUJRANWALA TOWN 159 GUJRANWALA TOWN 159 GUJRANWALA TOWN- -- -1 NEW DELHI. 1 NEW DELHI. 1 NEW DELHI. 1 NEW DELHI. 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR