TMI Blog2012 (9) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant by : Dr. BRR Kumar, Sr. DR. Respondent by : Shri J.S. Kochar, C.A. Shri Udaibir Singh, Advocate. ORDER PER TS KAPOOR, AM: This is an appeal filed by the revenue against the order of Ld CIT(A) dated 9.1.2009. The grounds raised by the revenue are as under:- 1. On the facts and in the circumstances of the case, the Ld CIT(A) has erred in deleting the addition of amount of investments in IVPs of Rs. 9 lakhs and interest thereon for Rs.82,875/- as panchnama drawn by CBI shows that these IVPs were in joint names of Shri R.P. Singh and his wife Mrs., Usha Singh. The claim that the investment is reflected in the return of income of the company holds no ground as the return of income of the company for the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,000/- and Rs.82,875/- as interest accrued thereon to the income of assessee. The Assessing Officer held this view on the following facts:- 1. That these IVPs belonged to the company as at the time of purchase of IVPs the company had only Rs.1 lakh as its authorized capital and it had raised the authorized capital only on 4.1.2002 by filing Form No.5 with the Registrar of Companies. 2. That since IVPs were found in the personal locker of Shri RP Singh and Mrs. Usha Singh, they cannot be said to be belong to the company. 3. That income tax return of the company for assessment year 2000-01 was filed on 30.11.2000 after the date of search and assessee had shown the investment as that of company to cover up the investment in IVPs recover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cker maintained by the assessee and his wife, so it belonged to the assessee. The appellant had submitted all the relevant details and documents regarding investment in IVPs that the investment in IVPs was made by the company and produced the financial documents of the company showing the investment by the company which had already been disclosed in the books of the company and the income thereon had assessed to tax every year and also explained the source of investment made by the company. The Assessing Officer had not pointed out any defect in these documents. The single investment and income thereon cannot be assessed in two hands. The investment in IVPs and interest thereon is already assessed in the hands of the company of which the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the fact that share application money has already been taxed in the hands of company and there cannot be double taxation again in the hands of director. 8. In his rejoinder, the Ld DR questioned about the appeal filed by the company with respect to addition of Rs.13,90,000/-. 9. We have heard the rival submissions of both the parties and have gone through the material available on record. We find from the P L Account filed at page 4 of the paper book that income from IVPs has been duly reflected as the income of the company. Similarly, investments in IVPs have been duly reflected in the balance sheet as on 31.3.2001 placed at page 5 of the paper book. We also observe that there were only two directors of the company M/s RP Singh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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