Income Tax Appellate Tribunal - Delhi
Aditya Real Build Pvt. Ltd., New Delhi vs Ito, Ward- 1(3), New Delhi on 29 January, 2020
आयकर अपीलीय अिधकरण,
अिधकरण द ली यायपीठ "एसएमसी
एसएमसी",
एसएमसी नई द ली म
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'SMC', NEW DELHI
सुौी सुषमा चावला,
चावला, उपा य!
BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT
आयकर अपील सं. / ITA No.2341/Del/2018
िनधा$रण वष$ / Assessment Year 2009-10
M/s Aditya Real Build Pvt. Ltd.,
Plot No. 153, Pocket 9, Sector 22,
Rohini, New Delhi-110085
PAN-AAGCA7823E ..........अपीलाथ&/Appellant
vs
ITO, Ward-1(3),
New Delhi .............ू(यथ&/
Respondent
ःथगन अपील सं./S.A. No. 437/Del/2019
िनधा$रण वष$ / Assessment Year 2009-10
M/s Aditya Real Build Pvt. Ltd.,
Plot No. 153, Pocket 9, Sector 22,
Rohini, New Delhi-110085
PAN-AAGCA7823E ..........अपीलाथ&/Appellant
vs
ITO, Ward-1(3),
New Delhi .............ू(यथ&/
Respondent
अपीलाथ& क+ ओर से / Appellant by : Sh. Prabhakar Kumar, CA
ू(यथ& क+ ओर से / Respondent by : Sh. Sanjog Kapoor, Sr. DR
सुनवाई क+ तार/ख / घोषणा क+ तार/ख /
Date of Hearing : 02.12.2019 Date of Pronouncement: 29.01.2020
1
ITA No. 2341/Del/2018
SA No. 437/Del/2019
आदे श / ORDER
PER SUSHMA CHOWLA, VP The present appeal and the stay application filed by assessee are against order of CIT(A)-I, New Delhi dated 07.12.2017 relating to assessment year 2009-10 against order passed under section 143(3) of the Act.
2. The appeal and the stay application relating to the assessee were heard together and are being disposed of by this consolidated order for the sake of convenience.
3. The assessee is aggrieved by the addition of Rs.30,54,000/-. The appeal has been filed after a delay of 24 days. The assessee has moved an application for condonation of delay and after perusing the same, the delay of 24 days is condoned and appeal is being adjudicated after hearing both the authorized representatives.
4. Briefly in the facts of the case, the assessee had furnished the return of income of Rs. 2,540/-. The AO received information from the Investigation Wing that Shri. S.K. Jain was providing accommodation entries and the name of the assessee company also figured in the list of beneficiaries of share capital premium / loan. The said information was consequent to search and seizure on premises of Shri. S.K. Jain. Consequent to the information received from Investigation Wing, the AO recorded reasons for reopening the assessment and issued notice under section 148 of the Act. In reply, the assessee submitted that the return of income earlier filed by it should be treated as filed in response to 2 ITA No. 2341/Del/2018 SA No. 437/Del/2019 notice under section 148 of the Act. Thereafter, notice under section 143(2) was issued to the assessee. The AO on the analysis of the various documents relating to the Jain brothers concluded by making an addition of Rs. 30,00,000/- under section 68 of the Act. Further the addition of Rs. 54,000/- was made on account of commission on the said transaction. The CIT(A) upheld the order of AO against which the assessee is in appeal before us.
5. The learned AR for the assessee pointed out that before the AO admittedly no reply was filed to the show cause notice and he further stated that the assessee company was floated during the preceding year and the aforesaid addition was not warranted in the hands of the assessee under section 68 of the Act.
6. The learned DR for the Revenue pointed out that the assessee was a private limited company and had alleged to have received premium on 18 Lacs. He further stressed that creditworthiness of the persons from whom share application plus premium was received had to be established but the assessee had failed to do so. He further placed reliance on the ratio laid down by the Hon'ble Supreme Court in Principal Commissioner of Income-tax (Central)-1 vs. NRA Iron & Steel (P.) Ltd,.
7. On the perusal of the record and after hearing both the authorized representatives, the issue which arises in the present appeal is in relation to the alleged share application and premium received by the assessee company. The assessee is a company with paid up capital of 3 ITA No. 2341/Del/2018 SA No. 437/Del/2019 Rs. 1,00,000/- which admittedly was floated in the preceding year. During the year under consideration, the assessee claims to have received premium of Rs. 18,00,000/- over and above the share capital issued by it. The assessee has failed to establish the creditworthiness of the persons from whom application money and premium had been received. The AO had received the information in this regard on the basis of investigation carried in the case of Jain brothers and the immediate source of the amount credited was found to be through the accommodation entry provider companies. The onus upon the assessee has not been discharged to establish the creditworthiness of the persons and also to establish the premium raised on the alleged share capital issued by the assessee.
8. In this regard, the Supreme Court in Principal Commissioner of Income-tax (Central)-1 vs. NRA Iron & Steel (P.) Ltd,. (supra) has laid down the proposition that where there was failure of assessee to establish credit worthiness of investor companies, Assessing Officer was justified in passing assessment order making additions under section 68 for share capital/premium received by assessee company. Merely because assessee company had filed all primary evidence, it could not be said that onus on assessee to establish credit worthiness of investor companies stood discharged.
9. In view thereof, we uphold the addition made under section 68 of the Act for share capital and premium received by the assessee 4 ITA No. 2341/Del/2018 SA No. 437/Del/2019 company. The addition is thus upheld in the hands of the assessee. The grounds of appeal raised by the assessee are thus dismissed.
10. Consequent to the decision of the appeal in the case of the assessee, the stay application is also dismissed.
11. In the result, both appeal and stay application of the assessee are dismissed.
Order pronounced in the open court on 29th January 2020.
Sd/-
(SUSHMA CHOWLA)
उपा य!/VICE
य! PRESIDENT
th
द ली / दनांक Dated : 29 January, 2020
SH
आदे श क+ ूितिल4प अमे4षत/Copy of the Order is forwarded to :
1. अपीलाथ& / The Appellant
2. ू(यथ& / The Respondent
3. आयकर आयु7(अपील) / The CIT(A)
4. मु:य आयकर आयु7 / The Pr. CIT
5. 4वभागीय ूितिनिध, आयकर अपीलीय अिधकरण, द ली / DR, ITAT, Delhi
6. गाड$ फाईल / Guard file.
आदे शानुसार/ BY ORDER, स(या4पत ूित //True Copy// सहायक र?जःशार, आयकर अपीलीय अिधकरण , द ली Assistant Registrar, ITAT, Delhi 5