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2009 (8) TMI 1204 - ITAT DELHI

2009 (8) TMI 1204 - ITAT DELHI - TMI - ITA No.1015/Del./2009 - Dated:- 28-8-2009 - SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI K.D. RANJAN, ACCOUNTANT MEMBER Revenue by : Shri Manish Gupta, DR ORDER PER I.P. BANSAL, JM : This is an appeal filed by the revenue. It is directed against the order of CIT (Appeals) dated 11.10.2007 for assessment years 2001-02. The grounds of appeal are as under : "1. On the facts and in the circumstances of the case, the ld. CIT (A) has erred in law and facts in .....

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share application money. The Assessing Officer has mentioned the details of two parties from whom the assessee has received share application money at page 4 of the assessment order, which is as under :- S.No. Name Amount Cheque No. Date 1. M/s. Chintpurni Credits & Leasing P. Ltd. 2,50,000/- 056656 12.12.2000 2. M/s. Sh. Dina Nath Duhariwala Spinning Mills P. Ltd. 2,50,000/- 057219 12.12.2000 TOTAL 5,00,000/- But, in respect of other two parties, he did not give the details and he observed .....

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₹ 10 lacs taking the difference of paid-up capital of the previous year with the paid-up capital of 31.3.2000. Copies of balance sheet for the year ending 31.3.2000 and 31.3.2001 were submitted to show that it was a typographical mistake. With regard to this submission, learned CIT (Appeals) has observed that during the year under consideration, the assessee had received share application money of ₹ 5 lacs. However, due to typographical error, the share application money received dur .....

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e books of account, bank statements and other documents has on the basis of balance sheet stated that the assessee had received ₹ 10 lacs as share application money during the year. Thus, learned CIT (Appeals) has observed that Assessing Officer has neither applied his mind nor made any investigation while framing the assessment order and the assessment order has been framed only on the basis of information received from investigation wing without making any further investigation. It has b .....

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); (iv) A-One Housing Complex Ltd. vs. ITO Ward 1(1), 110 ITD 361 (Delhi); (v) CIT vs. Value Capital Service Pvt. Ltd. 307 ITR 334 (Delhi); (vi) CIT vs. Orissa Corporation Pvt. Ltd. 159 ITR 78 (SC). In view of this situation, learned CIT (Appeals) has decided the issue in favour of the assessee and addition has been deleted. As the addition has been deleted, addition on account of commission has also been deleted. Department is aggrieved and hence in appeal. 4. Learned Senior DR relied on the or .....

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gly been deleted by learned CIT (Appeals). 5. We have carefully considered the submissions of learned Senior DR. We have also carefully gone through the assessment order as well as order of CIT (Appeals). The Assessing Officer observed at page 5 of the assessment order that merely furnishing PAN, assessment particulars and confirmation by the share applicants is not enough. This observation of Assessing Officer is contrary to the law explained by Hon'ble Supreme Court in the case of Lovely E .....

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tions of the Lordship from the said decision : "2. Can the amount of share money be regarded as undisclosed income under s. 68 of IT Act, 1961 ? We find no merit in this Special Leave Petition for the simple reason that if the share application money is received by the assessee company from alleged bogus shareholders, whose names are given to the AO, then the Department is free to proceed to reopen their individual assessments in accordance with law. Hence, we find no infirmity with the imp .....

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