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2022 (6) TMI 1159 - ITAT AHMEDABADAddition u/s 68 - unexplained share application money - HELD THAT:- We note that the assessment for impugned assessment year 2011-12 was re-opened on the basis that during the course of assessment proceedings for assessment in 2012-132020 (3) TMI 227 - ITAT AHMEDABAD], it was found that the assessee company received share application money from M/s Mars Software International Ltd. and Mr. Anil Jain - The “reasons to believe” for assessment year 2011-12 specifically mentioned that the basis for the opening the case under section 147 of the Act is that during the course of assessment proceedings for assessment year 2012-13, it was found that the assessee accepted the share application money in respect of which additions under section 68 of the Act were made. The first appellate authority in the appeal for assessment year 2012-13 deleted the addition for the reason that the said share application money pertained to the earlier year and hence could not be added in assessment year 2012-13. It was for this reason, reassessment proceedings were initiated for the impugned assessment year 2011-12 to tax the aforesaid share application money in the hands of the assessee, which could not be taxed in assessment year 2012-13 since it did not pertain to that year. However, since Ahmedabad ITAT in the assessee’s own case and in respect of the share application money received from the same parties (as in the impugned assessment year 2011-12) has deleted the addition under section 68 which formed the basis for reopening of assessment for the assessment year 2011-12, respectfully following the above ITAT decision the assessee’s own case for assessment year 2012-13, we hereby delete addition in respect of share application money under section 68 of the Act. In the result, ground number 1 of the assessee’s appeal is allowed.
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