9911796707
TMI Blog2019 (2) TMI 1585X X X X Extracts X X X X X X X X Extracts X X X X ..... ansali, Advocate For the Revenue : Shri Sanker Halder, Addl. CIT Sr. D/R ORDER PER J. SUDHAKAR REDDY, AM :- This appeal filed by the revenue is directed against the order of the Learned Commissioner of Income Tax -4, Kolkata, (hereinafter the ld.CIT(A) ), passed u/s. 250 of the Income Tax Act, 1961 (the Act ), dt. 21/12/2015, for the Assessment Year 2012- 13. 2. After hearing rival contentions, we find that the Assessing Officer in this case has made an addition u/s 41(1) of the Act of outstanding share application money. The Assessing Officer observed that the shares in question were not allotted since 31/03/2014. The assessee company was asked to show as to why this share application money, which is admittedly re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the AO as discussed in the assessment order. The basic criterion in the matter is whether the liability still exists in the accounts of the assessee or not for the year under consideration. If the same exists then the provision of section 41 (1) of the Act would not be operational in the facts and circumstances. The AO has not made a finding with any material evidence that the appellant has written off the liability in its books. Taking a holistic view in the matter at hand and after considering the entire spectrum of the issue, I am not inclined to endorse the action of the AO in making the impugned addition when the liability still existed as discussed supra. In the facts and circumstances of the matter, the addition made by the AO on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s shall be deemed to be profits and gains of the business or profession, and accordingly chargeable to income-tax as the income of that previous year.(Emphasis Ours). 3.1. In the case on hand, there is no instance of allowance or deduction made in any assessment in respect of loss, expenditure or trading liability incurred by the assessee. This was a case of share application money received which is a capital receipt. Hence, the addition u/s 41(1) of the Act, has been wrongly resorted to by the Assessing Officer. Under these facts and circumstances, we uphold the order of the ld. CIT(A) and dismiss the appeal of the revenue. 4. In the result, appeal of the revenue is dismissed. Kolkata, the 28th day of November, 2018. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
