TMI Blog2006 (8) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Appellate Tribunal, Delhi Bench 'A' in ITA No. 5185(Del)/04 relevant for the assessment year 2001-02. 2 The assessee had received an amount of Rs. 15 lakhs towards share capital contribution from one of its Directors that is Smt. Kavita Kothari. 3 To ascertain the source of investment, Smt. Kavita Kothari was summoned by the Assessing Officer. She appeared before the Assessing Officer and produced her bank statement which indicated that she had issued three cheques of Rs. 5 lakhs each to the assessee. Prior to this she had received three cheques of Rs. 5 lakhs each from the State Bank of India, Fateh Puri, Delhi and these cheques were issued by M/s Mahal Chand Moti Lal Kothari and Co. The Assessing Officer tried to find o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the Delhi address. In any case, the credit worthiness of Smt. Kavita Kothari was not doubted and there was evidence to suggest that M/s Mahal Chand Moti Lal Kothari also had the requisite amount of credit worthiness on the basis of which cheques were issued to Smt. Kavita Kothari. Given these facts, the Tribunal was of the view that the assessee cannot be foisted with a liability under Section 68 of the Act. 6 We are of the view that the Revenue has not been able to raise any substantial question of law. It is clear that the assessee received share application money from Smt. Kavita Kothari who is not only a genuine person but was also creditworthy. She was able to show that she had received cheques from M/s Mahal Chand Moti Lal K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther the alleged share holders actually existed or not. If the shareholders are identified and it is established that they have invested money in the purchase of shares then the amount received by the company would be regarded as a capital receipt and to that extent the observations in the case of Stellar Investment Ltd. (1991) 192 ITR 287 (Delhi), are correct but if, on the other hand, the assessee offers no explanation at all or the explanation offered is not satisfactory then, the provisions of Section 68 may be invoked. In the latter case Section 68, being a substantive section, empowers the Income Tax Officer to treat such a sum as income of the assessee which is liable to be taxed in the previous year in which the entry is made ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
