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TMI Blog2012 (7) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 234B is mandatory and therefore, this plea of appellant is dismissed and interest u/s 234D cannot be levied as interest under section 234D could not be charged in respect of assessment years falling prior to assessment year 2004-05. - ITA 1257/2011 - - - Dated:- 20-7-2012 - MR. JUSTICE S. RAVINDRA BHAT, MR. JUSTICE R.V. EASWAR, JJ. For Appellant: Mr. Sanjeev Sabharwal, Sr. Standing Counsel with Mr. Puneet Gupta, Jr. Standing Counsel. For respondent: Dr. Rakesh Gupta with Ms. Rani Kiyala and Mr. Piyush Singh, Advocates. MR. JUSTICE S.RAVINDRA BHAT (OPEN COURT) 1. The Revenue is aggrieved by an order of the Income Tax Appellate Tribunal (ITAT) dated 22.07.2011 whereby its Appeal against the CIT (A) s order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holding as follows: - I have gone through the submissions made by both the sides. As far as admission of additional evidences is considered, in my considered opinion these evidences deserve to be admitted and these are hereby admitted. It is settled law that ultimately justice must prevail. It is not denied that these proceedings have been initiated after a long period of 8 years from the execution of the transaction. All these persons are not in control of the appellant and these transactions took long back. The objective of the assessment proceedings is to make fair presentation of tax and objective is not at all to play the game of hide and seek. The reasons were recorded with respect to two persons only and no opportunity was given w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 147 and in view of the judgment of Hon‟ble Delhi High Court in the case of CIT vs. Pradeep Gupta 303 ITR 95. It is further noticed that in all there are 19 share applicants out of whom 17 are the companies who exist on the record of Registrar of companies. All the persons are assessed to tax. Appellant has also submitted that the amount has been refunded to all these persons in subsequent years and appellant was not even real beneficiary of share application money. The AO had all the powers under the law to call for the desired information directly from these persons as also held by Hon‟ble Supreme Court way back in the case of CIT vs. Orissa Corporation Pvt. Ltd. 159 ITR 78. Moreover, the position of the law is clear with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garding ground with respect to charging the interest u/s 234B, the same is mandatory and therefore, this plea of appellant is dismissed. However, with respect to charging of interest u/s 234D, the same cannot be levied for the impugned assessment year in view of judgment of Hon‟ble ITAT in the case of Ekta Promoters Pvt. Ltd. 305 ITR 1 (AT) (SB) and therefore the same is directly to be deleted. In the result, the appeal is partly allowed. 5. The ITAT while rejecting the Revenue s Appeal took into consideration the judgment of the Supreme Court in Lovely Export‟s case, 216 CTR 195 as well as of this Court in CIT v. Value Capital Services Pvt. Ltd., 307 ITR 334. 6. Counsel for the Revenue submitted that ITAT s order gives i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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