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TMI Blog2019 (2) TMI 371X X X X Extracts X X X X X X X X Extracts X X X X ..... n record indicate that any cash got exchanged between the assessee and the investor to suggest that the unaccounted money belonging to the assessee was routed in the accounts as Share Application Money. For the sake of completeness, we find that even the newly inserted provisions of Section 56(2)(viib) could not be applied to the facts of the case since these provisions have been inserted by Finance Act 2012 with effect from 01/04/2013 only and further the same has also not been invoked by the revenue - the impugned addition u/s 68 in the hands of the assessee was not justified and therefore, by deleting the same, we allow this ground of appeal. Since we have deleted quantum additions penalty against the same do not survive. - Decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Preliminary Expenses of ₹ 35,000/-. The assessee being resident corporate entity stated to be engaged as builders property developers was assessed for impugned AY in scrutiny assessment u/s 143(3) on 28/03/2014 by Ld. Additional Commissioner of Income Tax-Range 9(3), Mumbai [AO]. The income of the assessee was assessed at ₹ 208.47 Lacs under normal provisions after certain additions / disallowance as against returned income of ₹ 154.49 Lacs e-filed by the assessee on 30/09/2011. 2.1 During assessment proceedings, it transpired that the assessee received certain share application money against issue of 10000 equity shares of face value of ₹ 10/- per share at a premium of ₹ 990/- per share. The amount r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um-articles of association. The new address as per the records of Registrar of Companies was also provided to Ld. AO. The valuation / premium on the share was sought to be justified on the basis of yield method by estimating the future maintainable profits, the methodology of which has already been provided in the quantum assessment order at para no. 4.13.2. Further supporting documents viz. certified copy of board resolution of Volplast Limited authorizing investment in assessee company, bank statement of share applicant along with details of its directors was also furnished. The attention was drawn to the fact that the address of the share applicant had changed from Opera House, Mumbai to Surat, Gujarat. However, not convinced with exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnishing copy of its Permanent Account Number, financial documents, Memorandum Articles of Association, Bank statement, copy of Board Resolution ROC extracts etc. and therefore, there could be no dispute on this point. 4.2 So far as the nature of proviso to Section 68 as introduced by Finance Act, 2012 with effect from 01/04/2013 is concerned, the same has been settled by jurisdictional Bombay High Court in CIT Vs. Gagandeep Infrastructure Private Limited [80 Taxmann.com 272] wherein it has been held as under: - (e) We find that the proviso to section 68 of the Act has been introduced by the Finance Act 2012 with effect from 1st April, 2013. Thus it would be effective only from the Assessment Year 2013-14 onwards and not for the sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en it is for the Income Tax Officer to proceed by reopening the assessment of such shareholders and assessing them to tax in accordance with law. It does not entitle the Revenue to add the same to the assessee's income as unexplained cash credit. Respectfully following the same, we find substantial force in this argument advanced by Ld. AR that the assessee was required to prove the source of the money only and nothing beyond. The details on record reveal that the share application money has been received by assessee in trenches of ₹ 25 Lacs each on 10/07/2010 15/07/2010. The perusal of Bank Statement of the Share Applicant as placed on record that the aforesaid payments have been cleared from its bank account on 19/07/2010 v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee by invoking the provisions of Section 68 without bringing on record credible contrary evidences. The additions could not be made merely on the basis of suspicion. Nothing on record indicate that any cash got exchanged between the assessee and the investor to suggest that the unaccounted money belonging to the assessee was routed in the accounts as Share Application Money. For the sake of completeness, we find that even the newly inserted provisions of Section 56(2)(viib) could not be applied to the facts of the case since these provisions have been inserted by Finance Act 2012 with effect from 01/04/2013 only and further the same has also not been invoked by the revenue. 4.3 Keeping in view the above facts and circumstances, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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