Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

Income Tax Officer – 10 (2) (1) , Mumbai Versus M/s. Deep Darshan Properties Pvt. Ltd. and Others

Addition u/s 68 - CIT(A) deleted the addition - Held that:- The assessee has discharged its primary onus by establishing identity and creditworthiness of the share holders. The transactions stood confirmed also, on the basis of confirmation letters of all these share holders. The AO doubted the genuineness by relying upon some statements which were not recorded by the Assessing Officer. The statements relied by ld. Assessing Officer were not tested in the assessment proceedings conducted by the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

shed by the assessee. In view of the peculiar facts and circumstances of this case, order of ld.CIT(A) is upheld. - Decided against revenue. - ITA. Nos. 2117 & 2118/Mum/2014, ITA. No. 2160/Mum/2014, ITA. No. 2116/Mum/2014, ITA. No. 2157/Mum/2014, ITA. No. 2119/Mum/2014 - Dated:- 28-9-2015 - SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER. For The Revenue : Shri Chandra Vijay, D.R. For The Assessee : Dr. P. Daniel, A.R. ORDER PER BENCH : All these appeals .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in deleting the addition of ₹ 35,00,000 / - made under section 68 of the I.T. Act in respect of share application money without appreciating the fact that addition was bases on specific information provided by the Investigation Wing of Income Tax Department that investor companies had issued cheques towards the alleged share application money in return of cash." 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that the .....

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 business of financial services. Assessee received share capital subscription of ₹ 35 lacs from M/s. Sonal Cosmetics (Export) Ltd., M/s. Gabriel Investment P. Ltd., M/s. Jaihind Synthetics Ltd., M/s. Sonal Silichem Ltd. and M/s. Mihir Agencies P. Ltd. These companies were floated by Mr. Mukesh Choksi. He along with all related concern was searched by Investigation Wing. The said Mukesh Choksi and Mr. Jayesh Sampat, admitted before DIT(Inv.) that companies have received cash from the corpo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. On merit, CIT(A) allowed the appeal following various case laws on the point. Same has been opposed before us, inter alia submitting that CIT(A) was not justified in deleting the addition of ₹ 35 lacs made u/s.68 of Income Tax Act in respect of share application. Without appreciating the fact that addition was based on specific information provided by the Investigation Wing of Income Tax that investor companies had issued cheques towards the alleged share application money in return 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

; 2159/Mum/2014 for A.Ys. 2007-08 & 2008-09. ITAT, Mumbai E Bench in case of M/s. SDB Estate Pvt. Ltd. vs. ITO in ITA No.584/M/2015 for A.Y. 2008-09 and ITAT, Mumbai Bench in case of Smt. Jyoti D. Shah vs. ITO in ITA No. 1843/Mum/2012 for A.Y. 2003-04. In this background, learned Authorized Representative submitted that order of CIT(A) be upheld. 5. After going through rival submissions and material on record, we find that assessee has received share application of ₹ 35 lacs from five .....

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 share application money u/s.68 of the Income Tax Act. In similar facts and circumstances, where these shareholders have invested money in corporate entity as share application money, the ITAT, Jaipur Bench in case of Charti Syntex Ltd. vs. DCIT in ITA Nos. 172 & 173/Jp/2010 has held in para 24.4 as under: 24.4 In this case also no cross examination was allowed to the assessee. Therefore, adverse inference cannot be drawn only on the statement of Shri Mukesh Choksi. We further noted that 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

6 whereby we have held that the assessee has discharged its onus by filing necessary details and further have relied on the decisions of Hon'ble Supreme Court and Hon'ble Delhi High Court along with various other decisions of Tribunal and have held that addition cannot be made under s.68 in the hands of the assessee company. Therefore, in view of the same reasoning, we cancel the entire addition made and confirmed by the lower authorities here also. The above decision of ITAT, Jaipur Ben .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t u/s.68 of the Act in the hands of assessee company. This view has been upheld by Hon ble Bombay High Court in case of CIT vs. Creative World Telefilms Ltd. (2011) 333 ITR 100 (Bom) by observing as under: If the share application money is received by the assessee company from alleged bogus shareholders, whose names are given to the Assessing Officer, then the Department can always proceed against them and if necessary reopen their individual assessments. Held, dismissing the appeal, that there .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hare application money is received by the assessee company from alleged bogus share holders who s name are given to the AO then the department is free to proceed to reopen their individual assessments in accordance with law but it cannot be regarded as undisclosed income of assessee company. 6. Coming back to the facts of the present case, it is seen that investment in the capital share of the assessee company was made by five companies. These companies exist on the records of ROC. All these com .....

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 holders was also established. It is noted from the record that following evidence have been furnished by the assessee with respect to each of the share holders. -Memorandum and Article of Association -Copy of ROC Form No.-2 (alongwith details of share application and share allotment) -Copy of Audited Balance Sheet full set. -Copy of the Confirmation letter -Copy of PAN Card and -Copy of IT acknowledgment evidences filing of return -Copy of Balance Sheet. In our considered view, the assessee ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Assessing Officer to the assessee before using these statements against the Assessing Officer. Following submissions have been made before us, in support of the claim made by the assessee:- (i) The share application form is the confirmation of the share applicant. The share allotment in compliance of Companies Act 1956 in Form NO.2 is factually evident of the share capital. (ii) Funds of the share capital subscription are through banking channel and reflected in the bank statement. (iii) The all .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

T Department. In view of these peculiar facts and circumstances, we find that the assessee discharged its onus as per law, as stipulated section 68 of the Act. On the other hand, the Assessing Officer was not in position to controvert the factual material and documentary evidences placed by the assessee and he could not bring anything contrary on record to negate the documentary evidences furnished by the assessee. In view of the peculiar facts and circumstances of this case, order of ld.CIT(A) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

Forum: Input tax credit

Forum: Cess paid instead of SGST

Forum: Excise duty credit on finished stock at additional place of business.

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Forum: GST rates on mobile recharge business

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Forum: import purchase

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Forum: 3B mistake

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 – comments and suggestions-reg.



|| 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