Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (9) TMI 1299 - ITAT DELHI

2015 (9) TMI 1299 - ITAT DELHI - TMI - Addition u/s 68 - unexplained cash credit and unaccounted cash paid for obtaining accommodation entries - CIT(A) deleted the addition - Held that:- The assessee has filed some additional evidences before the Ld. CIT(A) which has been verified by the AO and the Ld. CIT(A) on the basis of the additional evidence, after giving full opportunity to the AO has deleted the addition in dispute. Ld. CIT(A) has taken the Remand Report from the AO and also examined al .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

121 - DELHI HIGH COURT) and CIT vs. Value Capital Services Ltd. (2008 (4) TMI 263 - DELHI HIGH COURT ) - CIT(A) has rightly deleted the addition - Decided in favour of assessee.

Validity of reassessment proceedings u/s. 147 - Held that:- On the issue of validity of reassessment proceedings u/s. 147 of the Income Tax Act, 1961, we are of the view that on the specific information the case of the assessee has been reopened. We are of the view that the material in possession of the AO is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

reassessment proceedings could not be declared as null and void.- Decided in favour of assessee. - I.T.A. No. 4597/DEL/2009, CROSS OBJECTION NO. 151/DEL/2010 - Dated:- 4-9-2015 - SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI H.S. SIDHU, JUDICIAL MEMBER For The Department : Shri J.P. CHANDRAKAR, SR. DR For The Assessee : S h. VED JAIN, CA ORDER PER H.S. SIDHU : JM The Appeal filed by the Revenue and the Cross Objection filed by the Assessee emanate out of the Order dated 16.9.2009 passed by the Ld. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.1 The Ld. CIT(A) failed to appreciate the facts that the assessee did not discharge the onus of proving the creditworthiness of the creditors and genuineness of the transactions. 3. The appellant craves leave to add, to alter, or amend any grounds of appeal raised above at the time of hearing. 3. The assessee has raised the following grounds in its Cross Objection:- 1. On the facts and circumstances of the case, the Ld. CIT(A) has erred, both on facts and in law, in rejecting the contention of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

opened does not have any live link with the belief of the AO that the income has escaped assessment, in the absence of the name of the assessee in the alleged statement on the basis of which the assessment has been reopened. 3. That the appellant craves leave to add, amend or alter any of the grounds of appeal. 4. The brief facts of the case are that assessee filed the return of income declaring loss of ₹ 5,78,075/- on 27.10.2004. The case was selected for scrutiny u/s. 148 of the Income T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rn declaring the same income as the assessee has earlier declared and stated that original return filed on 27.10.2004 may be treated as filed in response to notice u/s. 148. The assessee raised objection stating that the reopening of the case u/s. 148 is bad in law because the reasons recorded do not lead to any reasonable person to conclude that any income has escaped assessment. AO is of the view that the case of the assessee upon on specific information that the share application money receiv .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

u of cash. AO has also issued u/s. 143(2) and 142(1) of the Act. In response to the same Ld. AR of the assessee appeared from time to time and the case was discussed with the AO. Secondly, during the year under consideration assessee has received share capital of ₹ 13,70,000/- from 6 companies namely: * Teerath Impex & Traders Pvt. Ltd. ₹ 2,50,000/- * Mastogi Granites Pvt. Ltd. ₹ 2,00,000/- * Amalgamated Foods & Chemicals Pvt. Ltd. ₹ 2,00,000/- * Chambal Valley Su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e. AO issued summon u/s. 131 of the I.T. Act to all the above 6 companies which received back with the comments No Such Firm the same. For 3 firms the AO also issued notice to the concerned Bank which also received back from the post authorities with the remarks that no such Bank at Nai Sarak . After considering the evidence filed by the assessee and the facts and circumstances of the case, AO has held that assessee has given its unaccounted cash to the entry provider and the same had been recei .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d the appeal before the Ld. CIT(A), who vide impugned order dated 16.9.2009 partly allowed the appeal for statistical purposes and deleted the addition in dispute. 6. Now the Revenue is aggrieved with the deletion of addition of ₹ 13,70,000/- and assessee has also filed the Cross Objection for challenging the reassessment proceedings u/s. 147 of the I.T. Act, 1961. 7. At the time of hearing, Ld. DR relied upon the order passed by the AO and the assessee relied upon the order of the Ld. CIT .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eclared as null and void by accepting the Cross Objection filed by the assessee. 8. We have heard both the parties and perused the relevant records available with us, especially the orders passed by the Revenue Authorities, Written Synopsis filed by the assessee. As regards the appeal filed by the Revenue is concerned, in which the Revenue has challenged the deletion of addition of ₹ 13.70 lacs made u/s. 68 of the I.T. Act being unexplained cash credit of ₹ 27,400/- for obtaining acc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rm, the copies of PAN Card, income-tax details, bank particulars and bank statements, the complete addresses of the share applicant were furnished. It is now well settled that where the assessee had furnished (i) the names and addresses of the share applicants (ii) the GIR Nos./P.A.N. Nos. (iii) the Ward Nos. where assessed (iv) the mode of payment and (v) other information which the assessee knows or possesses, then it can be said that initial burden on the assessee can be said to be discharged .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ii) CIT vs. Divine Leasing & Finance Ltd. (2007) 299 ITR 268 (Del.). iii) CIT vs. Value Capital Services Ltd. (2008) 307 ITR 334 (Del.). iv) CIT vs. TDI Marketing Pvt. Ltd. (2009) 26 DTR (Del.) 358. In the present case the assessee can be said to have discharged its onus under section 68 of the Act. The appellant has given all the necessary details in order to establish the identity of the share applicants. After considering the entire material placed on record, it is fair to conclude that t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he assessee by verifying the documents furnished by it. If AO had doubted the impugned transaction after receiving the evidences which had been produced by the assessee in support of its claim it was very much open to the AO to do his independent enquiry and verification. This has not been done by the AO. Further, what is the desired documentary evidence required to support the claim of the assessee as required by the AO. is not coming out of the order of the A.O. Though, the share-applicants co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

0/- cannot be sustained and accordingly, the same is directed to be deleted. As the addition on account of accommodation entry has been deleted, the consequential addition on account of commission of ₹ 27,400/- for obtaining the said accommodation entries is also directed to be deleted. As a result, ground no. 2 and 3 are allowed. 9. After going through the aforesaid relevant paragraphs of the impugned order, we are of the view that the assessee has filed some additional evidences before t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ious decision rendered by the Hon ble Jurisdictional High Court as well as the Hon ble Supreme Court of India which includes CIT vs. Lovely Exports Pvt. Ltd. [2008] 216 CTR (SC) 195; CIT vs. Divine Leasing & Finance Ltd. (2007) 299 ITR 268 (Del.) and CIT vs. Value Capital Services Ltd. (2008) 307 ITR 334 (Del.). 10. After going through the impugned order passed by the Ld. CIT(A) as well as the citations referred by the Ld. CIT(A) in the impugned order, we are of the considered view that Ld. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the parties and relevant records, we are of the view that the Ld. CIT(A) has decided the issue in dispute vide para no. 3.2 to 3.3 at pages 3 to 5 in his impugned order. For the sake of convenience, the said relevant paragraphs are reproduced as under:- 3.2 I have carefully considered the submissions made on behalf of the appellant & findings of the Assessing Officer and facts on record. The perusal of the re-assessment order reveals that it was only after the Directorate of Incometax( Inve .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the appellant has no case to succeed on the ground relating to re-assessment proceedings. What is required for initiating re-assessment proceedings is the existence of a fresh prima-facie material. Consequent to the receipt of such information, the Assessing Officer, after examination of record, has to have a reasonable belief that the income has escaped assessment. The A.O. need not conduct a detailed investigation to prove that the income has escaped assessment in the hands of assessee b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rmation, which prompted the A.O. to proceed to issue notice uls 148 of the Act. Only in the re-assessment proceedings, the A.O. could proceed to examine such material and cause necessary enquiries before framing the assessment order as per law. In the instant case, the Assessing Officer is in possession of a fresh material received from the other statutory authority regarding some transactions. 3.3 The appellant has also raised the contention that though the copy of reasons recorded before issua .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

urnish the reasons within a reasonable time as held by the Supreme Court in G.K.N. Driveshafts India Ltd. V. ITO (supra). In the instant case, the undisputed fact is that the copy of reasons was given to the assessee during the reassessment proceedings. Without prejudice to the observations made above, I find that there was an earlier judgment of the Supreme Court by a Bench of three Id. Judges in the case of S. Narayanppa V. CIT (1967) 63 ITR 219 (SC) wherein it was held that the reasons for re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

V. CIT 63 ITR 219 (supra) the Apex Court considered the view taken by Madras High Court in Presidency Talkies Ltd. V. Addl. ITO (1954) 25 ITR 447, as correct one. Reliance is also placed on the decision in ITO Vs. Smt. Gurinder Kaur (2006) 102 ITD 189 (Delhi) wherein it has been held by the Hon'ble IT AT, Delhi that non- communication of the reasons, even according to the judgment of the Supreme Court in the case of G.K.N. Driveshafts (P) Ltd. (supra) is not considered to fatal to the valid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version