9911796707
TMI Blog2014 (11) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... Decided against revenue. - ITA No. 4921/Del/2013, ITA No. 4922/Del/2013, ITA No. 4923/Del/2013 - - - Dated:- 17-10-2014 - G D Agrawal, VP And Chandra Mohan Garg, JM,JJ. For the Appellant : Shri Satpal Singh, Sr.DR For the Respondent : Shri G N Gupta, Adv. ORDER Per: G D Agrawal,VP. These appeals by the Revenue are directed against the order of learned CIT(A)-XVIII, New Delhi dated 7th June, 2013 for the AY 2006-07. 2. In all these appeals, only one ground is raised by the Revenue which is against the deletion of addition made by the Assessing Officer under Section 68 of the Income-tax Act, 1961. The amount of addition in respect of all the three companies is as under:- (i) M/s Globus Infrastructures Pvt.Ltd. : Rs.45,00,000/- (ii) M/s Globus Colonisers Pvt.Ltd. : Rs.75,00,000/- (iii) M/s Globus Investments Pvt.Ltd. : Rs.60,00,000/- 3. Since the facts in all the companies are identical, we shall discuss herein below the facts in the case of M/s Globus Colonisers Pvt.Ltd in ITA No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, another report was sought for from the Assessing Officer for providing opportunity to the appellant to produce the Directors as requested by it. The Assessing Officer then submitted a remand report dated 18.02.2013 as under:- Addition u/s 68 was made in the assessment order on account of unexplained share application money received from the following companies:- Name of the Company Amount 1. Arun Finvest Pvt.Ltd. Rs.25,00,000 2. Sri Niwas Leasing Finance Ltd. Rs.25,00,000 3. Polo Leasing Finance Ltd. Rs.25,00,000/- Rs.75,00,000/- 3. The assessee filed appeal before CIT(A)-XV. The then CIT(A)-XV, New Delhi, vide his letter No.413 dated 19.3.2010 called for a remand report. 4. Accordingly, remand report was sent vide this office letter No.DCIT/Cir12(1)/Remand Report/2012-13/731 dated 12.11.2012 (copy enclosed). 5. Now, the ld.CIT(A) vide his letter No.CIT(A)- 18/Remand Report/2012-13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copy of confirmation of account. d) Photo copy of acknowledgement of ITR for A.Y. 2006-07. e) Photo copy of balance-sheet and P L account for asst. year 2006-07. f) Photo copy of one page Bank statement of the company. B) M/s Shrinivas Leasing Finance Ltd: (Addition of ₹ 25,00,000/-) On behalf of the above mentioned company Sh. Vinod Garg, director (from 2002 to 2011) appeared and furnished the following documents:- a) Photo copies of his PAN and Voter I-Card. b) Photo copy of confirmation of having invested ₹ 25,00,000/- for 12500 equity shares. c) Photo copy of confirmation of account. d) Photo copy of acknowledgement of ITR with computation of income for A.Y. 2006-07. e) Photo copy of balance-sheet and P L account for asst. year 2006-07 without annexure. f) Photo copy of one page Bank statement of the company. C) M/s Polo Leasing Finance Pvt.Ltd. (Addition of ₹ 25,00,000/-) On behalf of the above mentioned company Sh. Surinder Pal Singh, director (from 2003 to March 2007) appeared and furnished the following documents:- a) Photo copies of his PAN and Voter I-Card. b) Photo copy of confirmation of having allot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above mentioned companies, creditworthiness to the extent of investment made by them in the share capital of the assessee company is not proved. So far as first point is concerned that the directors were not produced during original assessment proceedings is irrelevant when during remand proceedings, the directors have already been produced and therefore, learned CIT(A) was fully justified in considering the facts as emerged after the appearance of the directors before the Assessing Officer during remand proceedings. To examine the Assessing Officer's contention that from the balance sheet, creditworthiness of the share applicant companies is not proved, we have examined the balance sheet of all the above three companies which is produced in the paper book by the assessee. At page 104 of the paper book, there is a balance sheet of Arun Finvest Pvt.Ltd. whose share capital is ₹ 60 lakhs and reserve surplus is ₹ 40 lakhs. Thus, the shareholders' fund is ₹ 1 crore which is many times more than the investment made by them in the assessee company. The balance sheet of Shri Niwas Leasing Finance Ltd. is at page 81 of the assessee's paper book, their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,64,297/-. At page 90, there is a balance sheet of Shri Niwas Leasing Finance Ltd. whose share capital is ₹ 3,99,00,000/-. The balance sheet of Satwant Singh Sodhi Constructions Pvt.Ltd. is at page 103. Their share capital is ₹ 1 crore. Thus, the share capital of each of the three companies is several times more than the investment in the share capital made by the above three companies in the assessee company. 10. Similar are the facts in the case of M/s Globus Infrastructures Pvt.Ltd. In this case, the total share application money added by the Assessing Officer was ₹ 45 lakhs which was received from the three companies as under:- Name of the Company Amount 1. S.G.C. Publishing Pvt.Ltd. Rs.5,00,000 2. Sri Niwas Leasing Finance Ltd. Rs.25,00,000 3. VPS Valves Tubes Pvt.Ltd. Rs.15,00,000 Rs.45,00,000 11. At page 97 of the assessee's paper book, there is a balance she ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
