PR.COMMISSIONER OF INCOME TAX DELHI -7 v. OSWAL PUMPS PVT.LTD - 2015-LL-1030-2

Citation	2015-LL-1030-2
Appellant Name	PR.COMMISSIONER OF INCOME TAX DELHI -7
Respondent Name	OSWAL PUMPS PVT.LTD.
Court	HIGH COURT OF DELHI AT NEW DELHI
Relevant Act	Income-tax
Date of Order	30/10/2015
Judgment	View Judgment
Keyword Tags	acknowledgement of • application money • balance sheet • share application • share application money • substantial question of law • unaccounted money
Bot Summary:	This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against an order dated 31st March 2015 passed by the Income Tax Appellate Tribunal in ITA No. 1480/Del/2013 for Assessment Year 2004-05. The question urged before this Court by the Revenue is whether the addition sought to be made by the Assessing Officer of Rs.62,13,750 under Section 68 of the Income Tax Act, 1961 which was shown as receipt of share application/share capital was rightly deleted by the ITAT. ITA No. 816 of 2015 Page 1 of 2 3. The Assessee had furnished several details concerning the four entities from whom application money was received by it. The ITAT noted that apart from sending notices to the said companies which were returned unserved, there was no effort made by the AO to determine whether the said entities were accommodation entry providers. Importantly, the ITAT noted that this was the first year of the Assessee s operation and therefore, the Revenue s allegation that the Assessee had introduced its own unaccounted money in the share application money was contrary to facts. In view of the above facts, no error has been committed by the ITAT in deleting the addition of Rs. 62,13,750 under Section 68 of the Act. No substantial question of law arises for consideration.

$ * IN HIGH COURT OF DELHI AT NEW DELHI 9. + ITA 816/2015 PR.COMMISSIONER OF INCOME TAX DELHI -7 ..... Appellant Through: Mr. P. Roy Chaudhari, Senior Standing counsel. versus OSWAL PUMPS PVT.LTD. ..... Respondent Through: Mr. Pranjal Srivastava, Advocate. CORAM: JUSTICE S. MURALIDHAR JUSTICE VIBHU BAKHRU ORDER % 30.10.2015 1. This appeal by Revenue under Section 260A of Income Tax Act, 1961 ( Act ) is directed against order dated 31st March 2015 passed by Income Tax Appellate Tribunal ( ITAT ) in ITA No. 1480/Del/2013 for Assessment Year ( AY ) 2004-05. 2. question urged before this Court by Revenue is whether addition sought to be made by Assessing Officer ( AO ) of Rs.62,13,750 under Section 68 of Income Tax Act, 1961 ( Act ) which was shown as receipt of share application/share capital was rightly deleted by ITAT. ITA No. 816 of 2015 Page 1 of 2 3. Assessee had furnished several details concerning four entities from whom application money was received by it. These included, inter alia, bank statements, acknowledgement of ITRs, balance sheet and profit & loss accounts, certificates of incorporation and details of PAN numbers. ITAT noted that apart from sending notices to said companies which were returned unserved, there was no effort made by AO to determine whether, in fact, said entities were accommodation entry providers. Importantly, ITAT noted that this was first year of Assessee s operation and therefore, Revenue s allegation that Assessee had introduced its own unaccounted money in share application money was contrary to facts. 4. In view of above facts, no error has been committed by ITAT in deleting addition of Rs. 62,13,750 under Section 68 of Act. No substantial question of law arises for consideration. appeal is dismissed. S. MURALIDHAR, J VIBHU BAKHRU, J OCTOBER 30, 2015/dn ITA No. 816 of 2015 Page 2 of 2 PR.COMMISSIONER OF INCOME TAX DELHI -7 v. OSWAL PUMPS PVT.LTD

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