Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 1370 - ITAT KOLKATAAddition u/s 69B - addition based on the value adopted by the stamp valuation authority - Held that:- In order to invoke the provisions of section 69B the burden is on the revenue to prove that the assessee has invested in property over and above what is disclosed in its balance sheet. We find that there is nothing on record to show that the assessee had made any additional investment in addition to what has been stated in the books of accounts. We hold that no addition could be made in the hands of the purchaser on the basis of stamp duty charged by the sub-registrar. We also find the valuation adopted by stamp valuation authority is only for the purpose of capital gain as prescribed u/s 50C of the Act which has got very limited scope. This legal fiction has been created for computation of capital gain only in the case of seller of any asset. We hold that the same cannot be extended in the case of the purchaser to estimate the undisclosed investment. See INCOME TAX OFFICER VERSUS OPTEC DISC MANUFACTURING [2008 (6) TMI 607 - ITAT CHANDIGARH] - no addition could be made in the hands of the assessee buyer - Decided in favour of assessee Addition towards share capital - Held that:- Assessee had given the complete details about the share applicants clearly establishing their identity , creditworthiness and genuineness of transaction proved beyond doubt and had duly discharged its onus in full. Nothing prevented the Learned AO to make enquiries from the assessing officers of the concerned share applicants for which every details were very much made available to him by the assessee - decision of the Hon’ble Apex Court in the case of CIT vs Lovely Exports (P) Ltd [2008 (1) TMI 575 - SUPREME COURT OF INDIA] is very well founded, wherein, it has been very clearly held that the only obligation of the company receiving the share application money is to prove the existence of the shareholders and for which the assessee had discharged the onus of proving their existence and also the source of share application money received. - Decided against revenue Addition u/s 68 made in respect of allotment of shares to 20 individuals - Held that:- We find from the details available on record that the share application monies from 20 individuals in the sum of ₹ 57,00,000/- has been received by the assessee during the financial year 2004-05 relevant to Asst Year 2005-06 and only the shares were allotted to them during the asst year under appeal. Admittedly no monies were received during the asst year under appeal and hence there is no scope for invoking the provisions of section 68 of the Act - decided against revenue
|