9911796707
TMI Blog2022 (6) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... ur appellant. 4. That the appellant craves leave, to urge, add, amend, alter, enlarge, modify, substantiate, delete any of the ground or grounds and to adduce fresh evidence at the time of the hearing of the appeal." 2. Succinctly stated, the assessee company, which is engaged in the business of mining had e-filed its return of income for the assessment year 2012-13 on 26.09.2012, declaring a loss of (Rs. 23,045/-). The return of income filed by the assessee company was initially processed as such u/s. 143(1) of the Act. Subsequently, the case of the assessee was selected for scrutiny assessment u/s. 143(2) of the Act. 3. On a perusal of the details before him, it was observed by the A.O that the assessee company had during the year under consideration claimed to have received share application money of Rs. 3 crore from M/s. MSP Mining & Minerals Pvt. Ltd., a group company, towards subscription of its 12,000 shares of a face value of Rs. 10/- a/w. share premium of Rs. 2,490/- per share. It was observed by the A.O that shares were thereafter allotted to the aforesaid share subscriber, viz. M/s. MSP Mining & Minerals Pvt. Ltd. In order to verify the genuineness and veracity of it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge potential in terms of development of its mining business, it was observed by the CIT(Appeals) that the said fact had no relevance for charging of exorbitant share premium by the assessee company which had yet not commenced its business. Also, it was observed by the CIT(Appeals) that not only the share premium charged by the assessee company was not justified considering its track record in the business of mining of manganese ore, but also there was no basis for arriving at a share premium of Rs. 2,490/- per share by the assessee company. Observing, that the claim of the assessee that the investor company i.e., the group company had made a strategic investment in its shares was nothing but a hollow claim that was bereft of any supporting material, the CIT(appeals) rejected the same by dubbing it as an uncorroborated claim. Accordingly, the CIT(Appeals) sustained the view taken by the A.O and held the charging of share premium by the assessee as totally unjustified. 5. Apropos the alternative claim of the assessee that as the share application money was received and credited in its books of account in the previous year relevant to the immediately preceding assessment year i.e., A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C 10,000,000 Our attention was also drawn by the Ld. AR to the details of payments that were made towards the aforesaid amount of share application money of Rs. 3 crore (supra) as were provided by the aforesaid subscriber company, viz. M/s. MSP Mines and Minerals Pvt. Ltd., Page 62 of APB, which reads as under: Sl. No. Date Bank Name Cheque No. Amount 1. 14.02.2011 HDFC Bank, 204, MashurawalaBaug, Dharampeth Extn., Shankar Nagar Road, Nagpur-440010 ( Maharashtra) 572860 5000000 2. 02.03.2011 HDFC Bank, 204, MashurawalaBaug, Dharampeth Extn., Shankar Nagar Road, Nagpur-440010 ( Maharashtra) 572861 5000000 3. 03.03.2011 HDFC Bank, 204, MashurawalaBaug, Dharampeth Extn., Shankar Nagar Road, Nagpur-440010 ( Maharashtra) 572862 10000000 4. 15.03.2011 HDFC Bank, 204, MashurawalaBaug, Dharampeth Extn., Shankar Nagar Road, Nagpur-440010 ( Maharashtra) 572868 10000000 Total Payment 30000000 Also, support was drawn by the ld. AR from the copies of receipts which were issued by the assessee company for the aforementioned amount of Rs. 3 crore (supra) that was received in four tranches from the abovementioned share subscriber, Page 58-59 of APB. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Departmental Representative (for short 'DR') relied on the orders of the lower authorities. It was submitted by the Ld. DR that as the assessee has failed to prove the 'nature' and 'source' of the amount of Rs. 3 crore (supra) credited in its books of accounts, therefore, the A.O had rightly held the same as an unexplained cash credit u/s. 68 of the Act. 10. After having given a thoughtful consideration to the aforesaid claim of the assessee i.e., qua the sustainability of the addition of Rs. 3 crore (supra) made by the AO u/s. 68 of the Act, which had been, inter alia, assailed by the assessee before us, for the reason that the amount in question was credited in its books of account in the previous year pertaining to the immediately preceding assessment year i.e., AY 2011-12 and not during the year under consideration, we find substantial force in the same. On a perusal of the bank account of the assessee i.e., bank account no. 016105005758 with ICICI Bank Ltd., Branch: Civil Lines, Raipur, we find that the aforesaid amount of Rs. 3 crore (supra) was undisputedly credited during the previous year relevant to the immediately preceding year i.e., AY 2011-12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee had received share application money in the earlier year and, only shares were allotted to the applicants during the year under consideration, then, the provisions of Section 68 of the Act could not be invoked to make an addition in the hands of the assessee during the subsequent year i.e, the year in which shares were allotted is supported by an order of the co-ordinate Bench of the Tribunal i.e, ITAT, Kolkata in the case of DCIT, Circle-1 Vs. Global Mercantiles (P). Ltd. (2016) 67 taxmann.com 166 (Kol-Trib). On the basis of our aforesaid deliberations, we are of the considered view, that as the amount of share application money of Rs. 3 crore (supra) was received and credited in the books of account of the assessee for the immediately preceding year i.e., AY 2011-12 and not in the year under consideration, therefore, there was no justification for the AO to have made an addition of the same as an unexplained cash credit u/s. 68 of the Act during the year under consideration i.e., AY 2012-13. We, thus, in terms of our aforesaid observations not finding favor with the view taken by the lower authorities vacate the addition of Rs. 3 crore (supra) that was made by the AO and ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
