TMI Blog2015 (9) TMI 1643X X X X Extracts X X X X X X X X Extracts X X X X ..... tlement period etc. Demat account of STSPL with Satco-CDSL showing debit of investment/shares sold was also placed on the record. The STSPL audited annual accounts, computation of income, assessment order under section 143(3) for assessment year 2008-09 & 2009-2010 duly reflected and the aforesaid amounts received from Satco and paid by STSPL towards 50% share application money was also placed on record. No justification in the addition made by the AO in respect of share capital received by the assessee for which not only identity but the source and genuineness was duly established. - Decided in favour of assessee. - ITA No. 4963/Mum/2012 - - - Dated:- 23-9-2015 - SHRI R. C.SHARMA, AM And SHRI PAWAN SINGH, JM Assessee by : Shri A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Speed Trade Securities Pvt. Ltd. (STSPL) will pay ₹ 2.20crore being 50% of the share application money and if it does not pay balance 50% of share application money, the amount paid as share application money will be forfeited by the assessee company. Since the STSPL could not pay the balance of 50%, the assessee company has forfeited the share application money in subsequent assessment year. The AO further observed that as per the balance sheet of STSPL, it has sufficient fund available to the tune of ₹ 14.33 crore on 31-3-2009, in spite of having such huge funds at its disposal, it has allowed its investment to go in drain and claimed loss in its profit and loss account. This device was resorted with an intent to evade th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mum/2009 10.05.2013 Graviss Hospitality Ltd. Vs. DCIT (Mum.ITAT) ITA No.3542/Mum/2013 21.11.2014 5. On the other hand, ld. DR relied on the orders of the authorities below and also decision of the ITAT Delhi Bench but the same was an ex-parte order, hence, not applicable in the present case. 6. Rival contentions have been heard and record perused. From the record we found that assessee company is engaged in investment in shares of companies. During the year under consideration the assessee has earned short term capital gains through sale of shares and declared income of ₹ 64,60,340/- and also paid taxes on the said income. During the year the assessee company received share application money from M/s Speed Trade Securities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er dated 31-3-2009, assessee informed that three extensions for a period of more than six months have already been granted and informed that STSPL had defaulted and not paid the balance 50% amount and, hence, assessee is exercising its right of forfeiting 50% share application money in accordance with the provisions of Companies Act, 1956 and also as per terms mutually agreed in the subsequent assessment year 2009-2010. Thus, the forfeiture was in the assessment year 2009-2010 and not in the assessment year 2008-09 under consideration. Now, the crucial point to be decided is as to whether the assessee during the course of assessment proceedings have proved the source of receipt of share application money through normal banking channel, duly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such shares/investments were lying in its Dmat account with CDSL on account of purchase and the said investments/shares were transferred from its Demat accounts on account of sale of its own investment/shares. The assessee had also filed its bank statement of ICICI bank for the period of 1-5-2007 to 30-9-2007 reflecting the receipt of 4 cheques on 7-9-2007 10-9-2007 total amounting to ₹ 2.22 crores from Satco. The statement of Bank of Baroda of Satco reflecting the payment of four cheques to STSPL for sale of its own investment/shares of stock exchange was also filed before the lower authorities. Our attention was also invited to the contract note of Satco dated 3-9-2007, 4-9-2007, 5-9-2007 7-9-2007 reflecting the sale of shares/i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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