9911796707
TMI Blog2012 (7) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... peal at any time before or during the hearing of this appeal." Apropos issue of share capital 3. In this case assessee company is engaged in the business of transport services i.e. operating and running trucks on hire in addition to outsourcing of transport services. During the financial year 2005- 06 relevant to assessment year 2006-07, the assessee company has raised Rs. 40,00,000/- as share capital in the form of 8,000 equity shares of Rs.100/- each at a premium of Rs.400/- each from several parties AO asked the assessee company to prove detailed calculation of the method of valuation of the premium per share in respect of the share premium calculated @ Rs. 400/- per equity share. However, the assessee company did not give satisfactory reply. Assessee company during the course of assessment proceedings submitted confirmatory letters from the parties along with the copies of their bank a/c statement reflecting the impugned transaction. AO sent letters by speed post to all the share applicants, seeking information u/s. 133(6). However, the letters addressed to the following parties were returned back unserved by the postal authorities with the comments 'left withou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us is discharged. Accordingly, Ld. CIT(A) directed that the addition should also be deleted. 5. Against the above order the Revenue is in appeal before us. 6. Ld. D.R. placed reliance upon the order of the Hon'ble Delhi High Court in ITA No. 342 of 2011 in the case of C.I.T. vs. Nova Promoters & Finlease (P) Ltd. He contended that in view of the exposition made by the Hon'ble Delhi High Court in above cited order dated 15.2.2012, the addition made by the AO should be sustained. 7. Ld. Counsel of the assessee on the other hand placed reliance upon the order of the Ld.CIT(A) and pleaded deletion of the amount added u/s. 68 of the IT Act. 8. We have carefully considered the submissions and perused the records. We find that the AO has specifically asked the assessee to provide the detailed calculation of the method of valuation of the premium per share in respect of the share premium calculated @ Rs. 400/- per equity share. However, the assessee company has not given any cogent reply in this regard. We find that Ld. CIT(A) has also not given any finding in this aspect. Hence, we observe that there is no cogent explanation on the records, as to why assessee should charge premium of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal; (b) past history of the appellant itself, wherein the assessment has been made u/s 143(3); and (c) no reason whatsoever for adopting the- said NP Rate are discernable from the assessment order. It was further pleaded by the assessee that the in* the absence of any indication by the AO as to how the said NP Rate of 10% of for estimating the income from gross receipts have been arrived at, it cannot be deemed that interest and depreciation have been considered by the AO and, therefore, depreciation and interest amounting to Rs. 17,35,868/- and Rs. 4,69,282/- respectively have to be allowed separately. 10.1 Ld. CIT(A) further noted that in respect of above, a remand report was also called from the AO, as the assessee in his written submission has very categorically stated that the details in connection of booking freight charges, truck fare charges as well as for expenses like the truck running expenses, truck running and maintenance expense were furnished to the AO and that books of account were also produced during the course of assessment proceedings. Ld. CIT(A) further noted in the remand report received, all these contentions of the assessee have not been rebutte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trucks, while on the move from one place to another while carrying the cargo. 10.4 Ld. CIT(A) further observed that on query raised, the assessee company furnished the complete detail for expenditure incurred by cheque of Rs. 28,38,584/- and truck wise and month wise detail of expenditure made through trick drivers for the balance sum of Rs. 16,64,697/- in cash in respect of all the 41 trucks. The said compilation was in addition to the ledger account submitted vide letter dated 3.10.2008 before the AO. On perusal of the these details, Ld. CIT(A) was of the considered opinion that assessee has maintained adequate and proper records in relation to the said expenditure. Ld. CIT(A) further noted that in fact, older the trucks more repair would be required on them. Ld. CIT(A) further noted that it was seen that such repair expenses have been incurred in earlier years also. A comparative chart of cash expenses on repair was also submitted. In these circumstances, ld. CIT(A) held that AO was not justified in invoking the provision of section 145(3) and held that the rejection of books was not justified. However, ld. CIT(A) observed that to meet the ends of justice, in light of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
