9911796707
TMI Blog2022 (10) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... not dispute that issue was squarely covered in favour of assessee and against Revenue, by aforesaid order of CIT vs. Vrindavan Farms (P) Ltd. . [ 2015 (11) TMI 279 - DELHI HIGH COURT] and in the case of Hindon Forge (P) Ltd. [ 2020 (12) TMI 124 - ITAT DELHI] . Sr. DR for Revenue also did not dispute the legal contention of Ld. Counsel for the assessee, that proviso to section 68 of IT Act inserted by Finance Act, 2012 w.e.f. 01/04/2013 had no application for Asst. Year 2012-13 to which this appeal pertains. Further, loss in the hands of IL FS is duly explained by the contention made from the assessee s side that IL FS, as a Venture Capital Fund, did not sell investments in sufficient quantities in Asst. Year 2012-13 and 2013-14; which was not disputed by Ld. Sr. DR for Revenue. Thus we are of the view that the Ld. CIT(A) and the AO erred in taking an adverse view regarding creditworthiness of IL FS and regarding genuineness of transaction of the assessee with IL FS. Accordingly, we direct the Assessing Officer to delete the aforesaid addition. X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of Rs.49,99,559/- was received in previous year relevant to assessment year 2011-12 and Rs.50,00,441/- was received in previous relevant to assessment year 2012-13. In the aforesaid impugned assessment order dated 20/02/2015, the Assessing Officer observed that the entire receipts from IL & FS were shown as closing balance in the books of IL & FS. The Assessing Officer took the view that the creditworthiness of IL & FS remained unproved because IL & FS has shown losses in return of income pertaining to assessment year 2012-13 and 2013-14. Aggrieved, the assessee filed appeal in the office of the Ld. CIT(A). Vide impugned appellate order dated 29/03/2016, the Ld. CIT(A) dismissed the assessee's appeal holding that the assessee failed to discharge onus of creditworthiness. Aggrieved again, the assessee filed this present appeal against the aforesaid impugned appellate order of Ld. CIT(A) dated 29/03/2016. In the course of appellate proceedings, the following papers were filed from the assessee's side: (a) Paper book consisting of the following particulars. Sr. No. Particulars 1. Copy of appellate order dated 29/03/2016 passed by the CIT(A) 2. Copy of assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h was sufficient to show that this amount was duly accounted for in the books of IL & FS. He submitted that the details of shares allotted on 01/04/2011 and 23/07/2011 against the entire aforesaid amount received from IL & FS were furnished to the AO and were available on record. The Ld. Counsel for the assessee submitted that full details of the investment made by IL & FS in the share company was shown in the balance sheet of IL & FS as on 31.03.20212; and that source of funds in respect of IL & FS was also shown by way of the liabilities in the Balance Sheet of IL & FS. The Ld. Counsel drew our attention to the Balance Sheet of IL & FS, which showed investment amounting to Rs.1 Crore as on 31/03/2012 including the aforesaid amount of Rs.99,88,082/- out of which Rs.49,99,559/- was also shown in the Balance Sheet as on 31/03/2011. The Ld. Counsel for the assessee drew our attention to Registration Certificate dated 07/01/2011 of SEBI whereby IL & FS was recognized as a venture capital fund, and submitted that share capital and share premium received by the assessee from IL & FS was in the normal course of business of IL & FS. The Ld. Counsel for the assessee also submitted that pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C.2.1) We have heard both sides. We have perused the materials on record. It is not in dispute that the aforesaid amount of Rs.99,88,082/- received by the assessee is duly reflected in the Balance Sheet of IL &FS as investment. There is also no dispute that the transaction between the assessee and IL & FS received clean chit in internal report of Income Tax Department vide aforesaid F. No. DIT (I & C.I)/Chd/2018-19/3037 dated 08/03/2019. It is further not in dispute that no adverse view was taken by the Assessing Officer in respect of aforesaid fresh amount of Rs.53,82,200/- received by the assessee from IL & FS. It is furthermore not in dispute that IL & FS is registered with SEBI as a Venture Capital Fund. Impliedly, the transactions of IL & FS with the assessee were in the normal course of business of IL & FS as a Venture Capital Fund. Furthermore, it is not in dispute that shares have been allotted by the assessee to IL & FS in respect of the entire aforesaid amount of Rs.99,88,082/-. Moreover, the Ld. Sr. DR for Revenue did not dispute that issue was squarely covered in favour of assessee and against Revenue, by aforesaid order of Hon'ble Delhi High Court in the case of CIT vs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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