TMI Blog2016 (2) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... f fact that the source of this ₹ 1.20 crore was from HDFC Bank and the ld. CIT(A) had also forwarded a copy of Bank Account of HDFC to AO for his comments. The AO in the remand report has not objected to the documents and has requested the ld. CIT(A) to consider the case while disposing of the appeal. The ld. CIT(A) has further made a finding of fact that in the statement of HDFC, all the entries relating to advancing of loan of ₹ 1.20 crores to assessee do appear. - Decided against revenue - ITA No. 122(Asr)/2013 - - - Dated:- 3-2-2016 - A. D. Jain (Judicial Member) And T. S. Kapoor (Accountant Member) For the Appellant : R. K. Sharda, DR For the Respondent : Sudhir Sehgal ORDER T. S. Kapoor (Accountant Member) This is the Department s appeal for the assessment year 2009-10, against the order dated 20.12.2012, passed by the ld. CIT(A), Bathinda. The Revenue has raised the following grounds: 1. That on the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition of : i) ₹ 1,65,00,000/- on account of failure of the assessee to prove identity and genuineness of the persons having introduced sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dence regarding such payment v) Source of payment of the premium by the shareholder. vi) Please furnish complete share premium account. 5. The assessee replied by filing complete detail of the share-holders alongwith complete address and PAN, as also the details of share premium alongwith mode of its receipts. However, the AO asked the assessee to file copies of account, books of account of the share-holders, copies of returns filed by them and source of amount alongwith copies of audit report of the concerned share-holders and also required to produce these persons for examination. The counsel for the assessee asked for adjournment for supply of the information. However, no adjournment was granted to the assessee, observing that the case was getting time barred. The AO proceeded to make the addition on account of share application money as income of the assessee company u/s 68 of the I.T. Act. For this addition, the AO placed reliance on CIT vs. Nivedan Vanijya Niyojan Ltd., , 263 ITR 623 (Cal.), wherein it was held that in the case of subscription to the share capital of a company the principal ingredient that has to be satisfied is to establish the identity of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee, placing strong reliance on the impugned order, has contended that the additions were made by the AO only for want of documents which can prove that the transactions of increase of share capital were genuine; that the AO had himself accepted the evidence for the same in his remand report and had not given any adverse comment against the submission of the assessee; that the AO had made the addition only on the basis of assumption; and that in the similar facts and circumstances, the appeal of the department was dismissed by the Chandigarh Bench of the Tribunal in the case of the ITO vs. M/s. Mandi Alloys (P) Ltd., vide order dated 27.11.2015, in ITA No.222/Chd/2015. Further, reliance has been placed on the following case laws: i) Kisco Castings P. Ltd. vs. ACIT in ITA No.685/Chd/2011, Chandigarh Bench, 152 TTJ 629. ii) CIT vs. Shree Dadu Auto P. Ltd. in ITA No.704 of 2009 (P H). iii) CIT vs. GP International Ltd. 325 ITR 25 (P H) iv) CIT vs. Gangeshwari Metal Pvt. Ltd., 361 ITR 10 (Del.) v) CIT vs. Winstral Petrochemicals P. Ltd., 330 ITR 603 (Del.) 10. Further, reliance has been placed on ACIT vs. Kisco Casting (P) Ltd., 147 ITD 269 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spective balance sheets. We find that the investments in the assessee-company has been out of share capital and reserves of the investing Companies. For example, the net worth of M/s. Dhir Management Consultants (P) Ltd., (one of the investing companies) as on 31.03.2009 as per balance sheet placed at paper book page 8 (in short PB-8 ) is ₹ 99,34,843/- out of which it had made investments to the tune of ₹ 75,45,930/- in various companies as is apparent from Schedule-VI of balance sheet placed at PB-9. The Schedule reflects the name of assessee company where the investment has been reflected to the tune of ₹ 70,00,000/-. 14. Similar is the position with other investing company, M/s. S.K.M. Securities (P) Ltd. The second investing company has net worth of ₹ 1,01,05,370/- as on 31.3.2009, out of which ₹ 65,00,000/- has been invested in the assessee company. This fact is verifiable from the copy of balance sheet of investing company placed at PB-13. 15. Similarly the third company M/s. Singhal Securities (P) Ltd., as on 31.03.2009 had net worth of ₹ 10,49,97,000/- out of which ₹ 7,02,55,000/- has been invested in shares of various compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and findings, we find that all the three ingredients required for fulfillment of provisions of section 68 of the Act are met and therefore, the ld. CIT(A) has rightly deleted the addition made by the AO u/s 68 of the Act. Accordingly, keeping in view the peculiar facts and circumstances of the case, Ground no.1 (i) of the appeal is dismissed. 20. As regards Ground no.1(ii), the ld. DR argued that as per the agreement with M/s. Satya Developers Pvt. Limited, the income had accrued to the assessee @ ₹ 10 lacs per month for 11 months and invited our attention to the agreement with M/s. Satya Developers Pvt. Ltd. 21. The ld. counsel for the assessee, on the other hand, submitted that the agreement with M/s. Satya Developers Pvt. Ltd. was an exhaustive agreement containing 33 clauses and one of the conditions as per clause-14 says that if the delay is because of the force-majeure conditions, no compensation is payable. He submitted that the PUDA had not given possession for development of the property even till 11.09.2006 and therefore, the delay in the execution of the project work was beyond the control of the developer. The ld. counsel for the assessee further submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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