Taxpublishers.in - InterestingDecision/Flash_052.htm - Tax Publishers Your Tax Solution Hub

Share via Whatsapp 189 Views


Tax Publishers Deem Roll Tech Ltd. v. DCIT [ITA No. 437/Ahd/2018, dt. 11-8-2020] : 2020 TaxPub(DT) 3128 (Ahd-Trib) Additions sustained under section 68 where amounts were not received in the assessment year of appeal *Facts:* It was held by the assessing officer and Commissioner (Appeals) that assessee had collected share premium amounting to Rs. 2 crores from various parties the onus of which could not be proved to satisfaction of lower authorities thus sustaining addition under section 68. The Prime grievance of the assessee was that they did not receive the amount in the said assessment year but only in the subsequent asst. year only and had created a journal entry crediting share application and creating an outstanding obligation from the respective parties for the said asst. year which was factual. On higher appeal - Held in favour of the assessee that to sustain additions under section 68 the said amounts should have been credited/received in the hands of the assessee. When this did not happen the addition under section 68 fails. *Applied:* Luxmi Foodgrains Private Limited - ITAT Bench "A" Chandigarh -- ITA No. 316/Chd/2019 -- Assessment Year 2013-14, dated 7-11-2019 : 2019 TaxPub(DT) 7793 (Chd-Trib). Jatia Investment Co. (1994) 206 ITR 718 (Calcutta) : 1994 TaxPub(DT) 0165 (Cal-HC) Bhagvat Marcom Private Limited [ITA No. 2236/Kol/2017, dt. 31-7-2019] : (2019) 178 ITD 684 (Kol-Trib) : 2019 TaxPub(DT) 5402 (Kol-Trib) Mahendrakumar Agarwal, ITAT-Jaipur 142 TTJ (Jp.) (UO) 35 Orissa Corporation Private Limited (1986) 159 ITR 78 (SC) : 1986 TaxPub(DT) 1425 (SC) The alternate plea of the assessee that the assessing officer must have countered the proofs/evidences submitted by the assessee by an independent enquiry did not have to be discussed elaborately as the amount did not get credited in the said year in the first place which is what is required as per section 68.

Tax Publishers

Deem Roll Tech Ltd. v. DCIT [ITA No. 437/Ahd/2018, dt. 11-8-2020] : 2020 TaxPub(DT) 3128 (Ahd-Trib)

Additions sustained under section 68 where amounts were not received in the assessment year of appeal

Facts:

It was held by the assessing officer and Commissioner (Appeals) that assessee had collected share premium amounting to Rs. 2 crores from various parties the onus of which could not be proved to satisfaction of lower authorities thus sustaining addition under section 68. The Prime grievance of the assessee was that they did not receive the amount in the said assessment year but only in the subsequent asst. year only and had created a journal entry crediting share application and creating an outstanding obligation from the respective parties for the said asst. year which was factual. On higher appeal -

Held in favour of the assessee that to sustain additions under section 68 the said amounts should have been credited/received in the hands of the assessee. When this did not happen the addition under section 68 fails.

Applied:

Luxmi Foodgrains Private Limited - ITAT Bench "A" Chandigarh -- ITA No. 316/Chd/2019 -- Assessment Year 2013-14, dated 7-11-2019 : 2019 TaxPub(DT) 7793 (Chd-Trib).

Jatia Investment Co. (1994) 206 ITR 718 (Calcutta) : 1994 TaxPub(DT) 0165 (Cal-HC)

Bhagvat Marcom Private Limited [ITA No. 2236/Kol/2017, dt. 31-7-2019] : (2019) 178 ITD 684 (Kol-Trib) : 2019 TaxPub(DT) 5402 (Kol-Trib)

Mahendrakumar Agarwal, ITAT-Jaipur 142 TTJ (Jp.) (UO) 35

Orissa Corporation Private Limited (1986) 159 ITR 78 (SC) : 1986 TaxPub(DT) 1425 (SC)

The alternate plea of the assessee that the assessing officer must have countered the proofs/evidences submitted by the assessee by an independent enquiry did not have to be discussed elaborately as the amount did not get credited in the said year in the first place which is what is required as per section 68.