ITO, New Delhi v. M/s Kamal Dal Mills Pvt. Ltd, New Delhi

ITA 360/DEL/2009 | 2004-2005
Pronouncement Date: 08-02-2010 | Result: Dismissed

Appeal Details

RSA Number 36020114 RSA 2009
Assessee PAN AAACK0150G
Bench Delhi
Appeal Number ITA 360/DEL/2009
Duration Of Justice 1 year(s) 9 day(s)
Appellant ITO, New Delhi
Respondent M/s Kamal Dal Mills Pvt. Ltd, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 08-02-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 08-02-2010
Date Of Final Hearing 08-02-2010
Next Hearing Date 08-02-2010
Assessment Year 2004-2005
Appeal Filed On 30-01-2009
Judgment Text
ITA NO. 360/DEL/09 A.Y. 2004-05 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI C.L. SETHI JUDICIAL MEMBER AND SHRI SHAMIM YAHYA ACCOUNTANT MEMBER I.T.A. NO. 360/DEL/2009 A.Y. 2004-05 INCOME TAX OFFICER WARD-5(1) VS. M/S KAMAL DAL MILLS PVT LTD. ROOM NO. 376A C.R. BLDG. C-19 LAWRENCE ROAD IN DUSTRIAL I.P. ESTATE NEW DELHI - 110002 AREA NEW DELHI 110 035 (PAN: AAACK0150G) [APPELLANT] (RESPONDENT) ASSESSEE BY : SH. RAMESH GOYAL CA DEPARTMENT BY : SH. J.A. KHAN SR. DR ORDER PER SHAMIM YAHYA AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE CIT(A) DATED 18.11.2008 FOR THE ASSESSMENT YEAR 2004-05. 2. THE ISSUE RAISED IS THAT THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 8 LACS MADE UNDER SECTION 68 OF THE IT ACT. 3. THE ASSESSEE IN THIS CASE IS A PRIVATE LIMITED COMPANY CARRYING ON TRADING IN PULSES APART FROM DERIVING INCOME FROM INTEREST AND DIVIDEND. DURING THE COURSE OF ASSESSMENT AO NOTED THAT THE ASSESSEE C OMPANY HAS RECEIVED A SUM OF RS. 4 LACS EACH FROM TWO COMPANIES NAMED M/S P ARIVARTAN CAPITAL FINANCE LTD. AND M/S VINAYAK FIN SCRIPT LTD. TOWARDS SHARE APPLICATION MONEY. THE ASSESSEE HAS FILED CONFIRMATION FROM BOTH THE COMPA NIES ALONGWITH THEIR ITA NO. 360/DEL/09 A.Y. 2004-05 2 RESPECTIVE BANK STATEMENTS. AO FOUND THAT IN THE BANK STATEMENTS BOTH THE COMPANIES HAD DEPOSITED CASH IMMEDIATELY BEFORE PA YMENT AS SHARE APPLICATION MONEY TO THE ASSESSEE. AO FURTHER OBSERVED THAT N O RESPONSE WAS OBTAINED ON SUMMONS ISSUED UNDER SECTION 131 OF THE IT ACT. AO PROCEEDED TO ADD THESE SUMS AS UNDISCLOSED INCOME OF THE ASSESSEE. 4. UPON ASSESSEES APPEAL LD. CIT(A) NOTED THAT AS SESSEE HAS SUBMITTED THE AFFIDAVIT OF THE DIRECTOR OF THE COMPANY COPY OF INCOME TAX RETURNS COPY OF PAN COPY OF COMPANY REGISTRATION NUMBER; COPY OF BALANCE-SHEET AND PROFIT AND LOSS ACCOUNT AND COPY OF BOARD RESOLUTION FOR A PPLYING SHARE APPLICATION MONEY. IN THE BACKGROUND OF THE ABOVE CIT(A) NOT ED THAT THE ASSESSEE HAS DISCHARGED ITS ONUS AND SUBMITTED ALL THE RELEVANT DETAILS. ACCORDINGLY LD. CIT(A) PROCEEDED TO DELETE THE ADDITION. 5. WE HAVE HEARD BOTH THE COUNSELS AND PERUSED THE RECORDS. WE FIND THAT THE ASSESSEE HAS PROVIDED ALL THE NECESSARY DETAILS TO EXPLAIN THE SHARE APPLICATION MONEY RECEIVED. ONLY GROUND TAKEN BY THE AO IS THAT THERE WAS NO RESPONSE TO SUMMONS ISSUED U/S 131 OF THE IT ACT. IN OUR CONSIDERED OPINION THIS ALONE CANNOT WARRANT ADDITION OF THE SHARE APPLICAT ION MONEY RECEIVED AS UNDISCLOSED INCOME OF THE ASSESSEE. IN THIS REGAR D IT WOULD BE APT TO REFER THE DECISION OF THE HON'BLE APEX COURT DELIVERED IN TH E CASE OF CIT VS. LOVELY EXPORTS 216 CTR 195. IN THIS CASE IT WAS HELD THAT IF THE SHARE APPLICATION MONEY IS RECEIVED BY THE ASSESSEE COMPANY FROM ALLEGED BOGUS SHAREHOLDERS WHOSE NAMES ARE GIVEN TO THE ASSESSING OFFICER THEN THE DEPARTMENT IS FREE TO PROCEED TO REOPEN THEIR INDIVIDUAL ASSESSMENTS IN ACCORDANC E WITH LAW BUT IT CANNOT BE REGARDED AS UNDISCLOSED INCOME OF THE ASSESSEE. ITA NO. 360/DEL/09 A.Y. 2004-05 3 6. IN THE BACKGROUND OF AFORESAID DISCUSSION AND PR ECEDENT WE DO NOT FIND ANY ILLEGALITY OR INFIRMITY IN THE ORDER OF THE LD. CIT(A). HENCE WE UPHOLD THE SAME. 7 IN THE RESULT THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08/02/201 0. SD/- SD/- [C.L. SETHI] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE 08/02/2010 SRB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES