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2022 (9) TMI 1025 - Income Tax
Addition u/s 68 - genuineness of share application / share premium received - declaration made IDS-2016 by director’s / family members - CIT- deleted the addition - AR submits that the investment made by the assessee-company was undisclosed income of various directors / family-members of the directors of the assessee-company, which has been accepted by them in IDS-2016 on which due penalty has been paid, once the amount has been taxed, same cannot be taxed in the hands of assessee again - HELD THAT:- We find that Hon'ble jurisdictional High Court in the case of M.R. Shah Logistic (P) Ltd. [2018 (8) TMI 1434 - GUJARAT HIGH COURT] on almost similar set of facts and on similar question of law allowed the appeal of that assessee by holding that where Assessing Officer held share application money received by assessee-firm from (GL) as undisclosed by the said (GL) under IDS-2016, which was accepted by the Department, pursuant to which that assessee had paid penalty, assessing the same amount in the hands of assessee would amount to “double taxation” and deleted the entire addition.
As in similar case in Peninsula Builders P Ltd, Shree Laxmi Fashions Private Limited and in Prime Embroideries Private Limited similar additions were made by assessing officer on account of share premium. Later on their directors accepted by filing application under IDS-16 and paid due tax of their own money, which was also infused through same modus operandi, and the ld CIT(A) deleted the addition, but no appeal is filed in such cases. We find that no contrary material is filed or shown to us by ld SR DR for the revenue that any further appeal is filed in all such similar cases by the revenue. Thus, in our considered view, the revenue cannot treat the similar situated assessee on similar additions in different way.
So far as the objection of ld Sr DR for the revenue is concerned that undisclosed income declared in IDS-16, not to affect finality of completed assessment. We may note that the appeal is continuation of its original proceedings and the assessee cannot be deprived of the benefit, if it was available at the time of assessment, if the appeal of assessee is pending adjudication either at first or second appeal stage.
We find that once the undisclosed income declared under IDS-2016 have been accepted by the Department including accepting the fact that ultimate amount was taxed, same therefore, cannot be taxed in the hands of assessee-company again. Thus, with these additional observation, we affirm the order of Ld. CIT(A).Grounds of appeal raised by the revenue are dismissed.