AO based on inforamtion emanated from Investigation Wing treated share capital received by assessee as unexplained credit under section 68.Held: Assessee having furnished confirmation of accounts, bank statements, income-tax returns and audited balance-sheet of investor comapny, Memorandum and Articles of Association, list of directors and copy of Board resolutions, etc., proved identity and creditworthiness of investor company and genuineness of investment in shares, accordingly, AO was not justified in making addition under section 68.
IN THE ITAT, DELHI BENCH
BHAVNESH SAINI, J.M. & N.K. BILLAIYA, A.M.
Brahmaputra Finlease (P) Ltd. v. Dy. CIT
I.T.A. Nos. 3333, 3334/Del/2017
A.Y. 2009-10 & 2010-11
15 January, 2020
In favour of assessee.
Assessee by: Gautam Jain, Advocate and Piyush K. Kamal, Advocate
Revenue by: Sanjay Goyal, CIT-DR
N.K. Billaiya, A.M.
The above two captioned appeals by the assessee are preferred against two separate orders of the Commissioner (Appeals)-35, New Delhi dated 27-3-2017 pertaining to assessment years 2009-10 and 2010-11.
2. The quarrel is in respect of additions made under section 68 of the Income Tax Act, 1961 [hereinafter referred to as 'The Act' for short] amounting to Rs. 2.30 crores in assessment year 2009-10 and Rs. 5.15 crores in assessment year 2010-11 in respect of sums received from the shareholders as share capital and share premium.
3. Since it was agreed upon by the representatives of both the sides that the underlying facts and issues in assessment years 2009-10 and 2010-11 are identical, representatives of both the sides were heard at length on the facts of I.T.A. No. 3333/Del/2017 for assessment year 2009-10 and on such concession, we have considered the facts in assessment year 2009-10.
4. Having heard the representatives of both the sides at length, the case records were carefully perused and with the assistance of the learned Counsel, we have considered the relevant material evidences brought on record in the form of Paper Book in light of Rule 18(6) of ITAT Rules, 1962.
5. During the course of scrutiny assessment proceedings, from the details submitted by the assessee and material available with the department, the assessing officer found that during F.Y. 2008-09, the assessee has raised share capital money to the tune of Rs. 2.30 crores as follows :--