TMI Blog2010 (5) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... tal contributors. Having regard to the facts and circumstances of the case and respectfully following Hon ble Supreme Court decision in the case of M/s. Lovely Exports Pvt. Ltd [ 2008 (1) TMI 575 - SC ORDER] share capital/premium received from investors is not liable to be treated u/s. 68 as unexplained credits and to be taxed in the hands of the appellant company. In view of the above, and finding no contrary decisions brought on record by the revenue authorities, we find no infirmity in the order of the Ld. CIT(A) and the same is hereby upheld. The appeal of the revenue is, therefore, dismissed. In the result, the appeal of the revenue is dismissed. - Sri D. K. Tyagi, JM Sri B. C. Meena , AM] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. CIT(A) following the decision of Hon ble Supreme Court in the case of CIT Vs- M/s. Lovely Exports Pvt. Ltd. reported in (2008) 216 CTR 195 allowed the assessee s appeal by holding that the share capital/premium of ₹ 24,00,000/- received from investors is not liable to be treated u/s. 68 as unexplained credits and to be taxed in the hands of the appellant company. Aggrieved by the said order, now the revenue is in appeal before us. 3. At the time of hearing before us, the Ld. DR relied on the order of the AO and on the other hand, the Ld. Counsel for the assessee relied on the order of the Ld.CIT(A). 4. We have heard the rival submissions and perused the material available on record. We find that the Ld. CIT(A) has give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... share applicant companies. In the absence of such a link or nexus, it is not correct to conclude that the said share capital actually belonged to, or were owned by the appellant. As such treating such share capital as income derived by the appellant from undisclosed sources is not correct. Even otherwise, there are judicial rulings including Supreme Court decisions that amounts received towards share capital are totally outside the scope of assessment u/s. 68, even if they are unproved, on the ground that they cannot be treated as cash credit falling within the purview of section 68, following the ratio laid dawn by Hon ble Supreme Court in CIT VS. Stellar Investment Ltd (2001) 251 ITR 263, the Hon ble Madras High Court in the case of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very much relevant to the issue on hand. The Ld. A.R brought to my notice that on similar facts the Hon ble ITAT, Kolkata Bench passed orders in favour of the assessee. He also furnished copies of ITAT judgments in the case of DCIT Vs. M/s. Howrah Gases Ltd. (ITA No. 270/Kol/2009 dt.. 23.4.09), ITO V. M/s. Yashuri Securities Pvt. Ltd (ITA No. 1276/Kol/2008 di, 16.10.2008) and Bear Bull Distributors (P) Ltd. Vs. ITO (ITA No. 1652/Kol/2008 dt, 24.12.2008). I find that following the ratio laid down by Apex Court in Lovely Exports Pvt. Ltd. (supra), the Hon ble ITAT, Kolkata Bench allowed the appeals in favour of the assessee. Having regard to the facts and circumstances of the case and respectfully following Hon ble Supreme Court decision in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
