CIT v. Nipuan Auto (P.) Ltd. - Taxpublishers.in

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The Tax Publishers2013 TaxPub(DT) 1936 (Del-HC) : (2014) 361 ITR 0155 : (2013) 263 CTR 0714 : (2013) 089 DTR 0342 Income Tax Act, 1961 --Income from undisclosed sources--Addition under section 68Share application money--As identity of two companies which were sister companies stood established and also authorities below particularly the Commissioner (Appeals), held that assessee had been able to discharge the initial burden to establish identity, creditworthiness and genuineness of transaction concerning allotment. Addition made under section 68 was rightly deleted by the Commissioner (Appeals) which was not disturbed by tribunal. Identity of the two companies which are sister companies stood established. Furthermore, this is not a case of mere furnishing of copies of bank accounts of the subscribers. But, in the present case, as noted by the Commissioner (Appeals) the assessee had filed the Income Tax returns of the subscriber companies as also their bank statements and balance sheets in addition to the confirmation letters from the said two companies. A copy of Form No. 2 filed by the assessee with the RoC regarding the allotment of shares to the said two companies had also been furnished. It is in this backdrop that the Commissioner (Appeals)) had concluded that the assessee had been able to prove its case and that the assessing officer could not shift the burden back on to the assessee-company without the assessing officer producing any tangible material to doubt the veracity of the documents furnished by the assessee. The Tribunal concurred with the views taken by the Commissioner (Appeals). (Para 10) The assessee in the present case, as rightly observed by the authorities below and particularly by the Commissioner (Appeals) has been able to discharge the initial burden to establish the identity, creditworthiness and genuineness as regards the transactions concerning the allotment of shares. In that view of the matter, no substantial question of law arises for the consideration of this Court. The appeal is dismissed. [Para 11] Income Tax Act, 1961 Section 68 In the Delhi High Court Badar Durrez Ahmed & Vibhu Bakhru, J.J. CIT v. Nipuan Auto (P.) Ltd. IT Appeal No. 225 of 2013 30 April, 2013 Revenue by : Sanjeev Rajpal Assessee by : None JUDGMENT SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 1936 (Del-HC) : (2014) 361 ITR 0155 : (2013) 263 CTR 0714 : (2013) 089 DTR 0342

Income Tax Act, 1961

--Income from undisclosed sources--Addition under section 68Share application money--As identity of two companies which were sister companies stood established and also authorities below particularly the Commissioner (Appeals), held that assessee had been able to discharge the initial burden to establish identity, creditworthiness and genuineness of transaction concerning allotment. Addition made under section 68 was rightly deleted by the Commissioner (Appeals) which was not disturbed by tribunal.

Identity of the two companies which are sister companies stood established. Furthermore, this is not a case of mere furnishing of copies of bank accounts of the subscribers. But, in the present case, as noted by the Commissioner (Appeals) the assessee had filed the Income Tax returns of the subscriber companies as also their bank statements and balance sheets in addition to the confirmation letters from the said two companies. A copy of Form No. 2 filed by the assessee with the RoC regarding the allotment of shares to the said two companies had also been furnished. It is in this backdrop that the Commissioner (Appeals)) had concluded that the assessee had been able to prove its case and that the assessing officer could not shift the burden back on to the assessee-company without the assessing officer producing any tangible material to doubt the veracity of the documents furnished by the assessee. The Tribunal concurred with the views taken by the Commissioner (Appeals). (Para 10) The assessee in the present case, as rightly observed by the authorities below and particularly by the Commissioner (Appeals) has been able to discharge the initial burden to establish the identity, creditworthiness and genuineness as regards the transactions concerning the allotment of shares. In that view of the matter, no substantial question of law arises for the consideration of this Court. The appeal is dismissed. [Para 11]

Income Tax Act, 1961 Section 68

In the Delhi High Court

Badar Durrez Ahmed & Vibhu Bakhru, J.J.

CIT v. Nipuan Auto (P.) Ltd.

IT Appeal No. 225 of 2013

30 April, 2013

Revenue by : Sanjeev Rajpal

Assessee by : None

JUDGMENT