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TMI Blog2013 (1) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... re identical. However, the facts are being extracted from ITA No.146 of 2005. 2. ITA No.146 of 2005 appeal has been preferred by the revenue under section 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 30.1.2003 passed by the Income Tax Appellate Tribunal, Delhi Bench 'C', New Delhi (for brevity, "the Tribunal) in ITA No.1543/Del/98 for the assessment year 1994-95. 3. In our opinion, the following substantial questions of law arise for consideration in this appeal:- i) Whether on the facts and in the circumstances of the case, the amount received by the assessee-company from share-holders/share-applicants, prior to the commencement of its business operations would be a capital receipt or income from undisc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or loans, as the same were received before the start of commercial operations. Not satisfied with the order passed by the CIT(A), the revenue went in appeal before the Tribunal. Vide order dated 30.1.2003, Annexure A.3 the Tribunal dismissed the appeal. It was held that the amounts received by the respondent as share capital or loans before the commencement of commercial operations were of capital nature. Hence the present appeals by the revenue. 5. Learned counsel for the revenue submitted that the assessee-company had introduced investment in the share capital of the company in the form of shareholders which did not have the credibility or the resources to pay the same. According to the learned counsel, it was undisclosed investment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same is to be included as income of the assessee under Section 68 of the Act. The question whether the amount was introduced prior to the commencement of the business of the company or afterwards is of no significance in as much as the aforesaid provision nowhere envisages any such eventuality. The statutory requirement for treating any amount as income of the assessee under Section 68 of the Act is where the assessee fails to justify and establishes the genuineness of the entry in the books of account. 10. Learned counsel for the revenue relied upon judgment of this Court in Power Drugs Limited v. Commissioner of Income Tax and another, (2011) 245 CTR (P&H) 623. On the other hand, learned counsel for the respondent-assessee relied up ..... X X X X Extracts X X X X X X X X Extracts X X X X
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