Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 1242 - AT - Income TaxAddition on account of share application money - AO observed that Shri Jasbir Singh was able to substantiate his sources of investment from sale proceeds of agricultural land but Shri Vinod Kumar could not do so - HELD THAT:- Shri Vinod Kumar was a man of means, his creditworthiness was proved and the identity was not in doubt since the assessee produced Shri Vinod Kumar before the AO who recorded his statement wherein the investment in the shares was admitted, copy of the share certificate, is placed of the assessee’s paper book which revealed that 10,000 shares having destructive nos. 16,501 to 26,500 were allotted to Shri Vinod Kumar vide certificate no. 22, therefore, the genuineness of transaction can also not be doubted. From the above facts, it is clear that the asseseee proved the identity and creditworthiness of Shri Vinod Kumar as well as the genuineness of transactions therefore, the addition made by the AO and sustained by the ld. CIT(A) was not justified, accordingly the same is deleted. - Decided in favour of assessee. Deemed dividend addition u/s 2(22)(e) - As per DR common share holders having more than 20% share holding in the assessee company and M/s Precision Stock and Credit Pvt. Ltd. which was having an accumulated profits - HELD THAT:- Assessee who was engaged in the real estate business received an advance against the sale of land, therefore it was in the nature of business transaction - the assessee company is not the shareholder in M/s Precision Stock & Credit Pvt. Ltd. and received the amount from the said company in the course of ordinary business activities. Therefore the provisions of section 2(22)(e) of the Act were not applicable. We, therefore, by considering the totality of the facts deem it appropriate to delete the impugned addition made by the AO and sustained by the Ld. CIT. - Decided in favour of assessee.
|