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Income-tax Officer, Ward 4 (4) , New Delhi Versus M/s Lipi Buildcon Pvt. Ltd.

2015 (12) TMI 379 - ITAT DELHI

Unexplained cash credit u/s 68 - CIT(A) deleted the addition - Held that:- In view of the decision of Hon’ble Delhi High Court in the case of Nova Promoters & Finlease (P) Ltd. ( 2012 (2) TMI 194 - DELHI HIGH COURT) and in the case of Empire Buildtech Pvt. Ltd. (2014 (2) TMI 135 - DELHI HIGH COURT), unless all the three ingredients for invoking section 68 are fully satisfied, addition cannot be deleted merely on the ground that the identity had been established. We find that in order to establis .....

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d creditworthiness of M/s Well Wish Credits Pvt. Ltd., as requested by ld. counsel for the assessee. Decided in favour of revenue for statistical purposes. - ITA nos. 4426 /Del/2010, ITA nos. 4427 /Del/2010 - Dated:- 6-10-2015 - SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI I.C. SUDHIR : JUDICIAL MEMBER For The Appellant : Shri Sameer Sharma Sr. DR For The Respondent : Shri Vinod Kumar Bindal CA ORDER PER S.V. MEHROTRA, A.M.: The captioned appeals, preferred by different assessees of the same .....

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loss of ₹ 583/-. The AO noticed that during the year the assessee company had not carried out any business activity. The AO, after considering the assessee s submissions made addition of ₹ 15,00,000/- on account of unexplained cash credit u/s 68 in respect of share capital received from M/s Well Wish credits Pvt. Ltd. 3. Ld. CIT(A) deleted the addition, inter alia, following the decision of Hon ble Supreme Court in the case of CIT Vs. Lovely Exports (P) Ltd. (2008) 216 CTR (SC) 195. .....

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existence/credit worthiness of the creditors and genuineness of the transactions. The Id CIT(A) also ignored the findings recorded by the A.O that the assessee received the money in question from the entry operators. 3. The appellant craves leave to add, to alter, or amend any grounds of the appeal raised above at the time of the hearing. 4. Brief facts of the case are that in course of assessment proceedings the AO noticed that during previous year assessee had received share capital amounting .....

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and he was required to produce the party, give correct address of M/s Well Wish credits Pvt. Ltd. to prove that this was not an accommodation entry. The AO has observed in para 3 of his order that assessee neither furnished the latest address nor produced the above party nor proved its creditworthiness. Instead, vide letter dated 24-12-2008 the assessee submitted that it had already filed confirmation, copy of ITR, certificate of incorporation and bank statement of the said company and, therefor .....

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sion. The assessee could not produce the said party or furnish its latest address. Genuineness and creditworthiness of the said Share capital Subscriber have not been established by the assessee. In view of these facts, the amount of ₹ 15,00,000/- received from the above company has to be treated as Unexplained Cash Credits in the hands of the assessee company. 4.1. He also relied on the legal position, which has been noted in para 5 of his order. 5. Before ld. Ld. CIT(A), the assessee had .....

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submissions and various case laws, relied upon by assessee, ld. CIT(A) deleted the addition, inter alia, observing in para 5.3 that assessee had given all the necessary details in order to establish the identity of the share applicant. Therefore, it was fair to conclude that the share applicant was an existing party and the payments were made through banking channel. The AO did not point out any discrepancy in the evidences relied upon by assessee. 6. Ld. DR submitted that the findings of ld. CI .....

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ildtech P. Ltd. 366 ITR 110, wherein it has been held that if a person who is investing the money has meager income then the same is to be adversely viewed. In this regard ld. DR referred to page 5 of PB wherein the acknowledgement in regard to return of income filed by M/s Well Wish Credits Pvt. Ltd. is contained and pointed out that the total income returned by the company was only ₹ 530/-. He, therefore, submitted that the investment of ₹ 15,00,000/- by the said company was wholly .....

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rce in the submission of ld. DR. In view of the decision of Hon ble Delhi High Court in the case of Nova Promoters & Finlease (P) Ltd. (supra) and in the case of Empire Buildtech Pvt. Ltd. (supra), unless all the three ingredients for invoking section 68 are fully satisfied, addition cannot be deleted merely on the ground that the identity had been established. We find that in order to establish the creditworthiness the assessee had claimed that the investor company was assessed to tax. Howe .....

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ee. 9. In the result, revenue s appeal is allowed for statistical purposes. ITA no. 4427/Del/2010: 10. Brief facts of the case are that the assessee company filed its return of income declaring loss of ₹ 15/-. The AO noticed that during the year the assessee company had not carried out any business activity. The AO, after considering the assessee s submissions made addition of ₹ 8,00,000/- u/s 68 on account of unexplained cash credit u/s 68 in respect of share capital received M/s Ha .....

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