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2021 (5) TMI 29 - AT - Income TaxAddition under section 68 being share capital received and addition under section 69C on account of commission - some of Directors did not appear in the case of assessee - HELD THAT:- Assessee produced documentary evidences before the A.O. to establish that assessee has received genuine share capital/premium from the Investor Company. The documentary evidences have not been doubted by the authorities below. The Investor Company has declared income of ₹ 173.55 Lacs in assessment year under appeal and has sufficient funds to make investment in assessee-company. It is a Public Limited Company and listed with BSE. Therefore, the assessee-company has been able to prove the identity of the Investor, its creditworthiness and genuineness of the transaction in the matter. Therefore, there were no justification for the authorities below to make or confirm the addition against the assessee under section 68. The Hon’ble Delhi High Court in the case of Divine Leasing & Finance Ltd. [2006 (11) TMI 121 - DELHI HIGH COURT] held that “no adverse inference to be drawn if the shareholders failed to respond to the notice issued by the A.O.” - Therefore, merely because the same Directors did not appear in the case of assessee would not be a ground to have an adverse inference against the assessee. Considering the totality of the facts and circumstances of the case in the light of above decisions, we do not find any justification to sustain the addition under section 68 and addition under section 69C - Decided in favour of assessee. Reopening of assessment u/s 147 - HELD THAT:- As in the light of this decision, the Order of the Tribunal in the case of ASN Polymers Pvt. Ltd.,[2020 (12) TMI 1199 - ITAT DELHI] cannot be considered favourable in favour of the assessee. We, therefore, following the Order of the Tribunal in the case of INS Finance & Investment P. ltd., (supra) confirm the reopening of the assessment in the matter. This ground of appeal of Assessee is dismissed.
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