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2022 (10) TMI 560 - ITAT DELHIAddition on account of share application/ premium received - assessee received the amount as share application money/share premium from a venture capital fund investing in start-up companies - HELD THAT:- It is not in dispute that the amount received by the assessee is duly reflected in the Balance Sheet of IL &FS as investment. There is also no dispute that the transaction between the assessee and IL & FS received clean chit in internal report of Income Tax Department . Also not in dispute that no adverse view was taken by the Assessing Officer in respect of aforesaid fresh amount received by the assessee from IL & FS. It is furthermore not in dispute that IL & FS is registered with SEBI as a Venture Capital Fund. Impliedly, the transactions of IL & FS with the assessee were in the normal course of business of IL & FS as a Venture Capital Fund. Furthermore, it is not in dispute that shares have been allotted by the assessee to IL & FS. Sr. DR for Revenue did not dispute that issue was squarely covered in favour of assessee and against Revenue, by aforesaid order of CIT vs. Vrindavan Farms (P) Ltd. . [2015 (11) TMI 279 - DELHI HIGH COURT] and in the case of Hindon Forge (P) Ltd. [2020 (12) TMI 124 - ITAT DELHI]. Sr. DR for Revenue also did not dispute the legal contention of Ld. Counsel for the assessee, that proviso to section 68 of IT Act inserted by Finance Act, 2012 w.e.f. 01/04/2013 had no application for Asst. Year 2012-13 to which this appeal pertains. Further, loss in the hands of IL & FS is duly explained by the contention made from the assessee’s side that IL & FS, as a Venture Capital Fund, did not sell investments in sufficient quantities in Asst. Year 2012-13 and 2013-14; which was not disputed by Ld. Sr. DR for Revenue. Thus we are of the view that the Ld. CIT(A) and the AO erred in taking an adverse view regarding creditworthiness of IL & FS and regarding genuineness of transaction of the assessee with IL & FS. Accordingly, we direct the Assessing Officer to delete the aforesaid addition.
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