Income Tax Appellate Tribunal - Kolkata
Sri Balaji Forest Products Pvt. Ltd., ... vs Department Of Income Tax on 29 March, 2012
आयकर अपीलीय अधीकरण, Ûयायपीठ - " C ", कोलकाता,
IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH- "C" CALCUTTA
(सम¢)Before ौी एन ǒवजय कुमारन, Ûयायीक सदःय एवं/and
Shri N. Vijaya Kumaran, Judicial Member.
ौी सी.डȣ.राव, लेखा सदःय
Shri C.D.Rao, Accountant Member
आयकर अपील संÉया / ITA No.1427/Kol/2010 A.Y 2006-07
ITO, W ard 7(3), Kolkata -वनाम- M/s. Sri Balaji Forest Products
Pvt. Ltd
Versus-.
PANAAGCS 8536
(अपीलाथȸ/APPELLANT ) (ू×यथȸ/RESPONDENT)
(अपीलाथȸ /APPELLANT ौी/Shri D.Roy, ld.DR
(ू×यथȸ/ RESPONDENT: ौी/Shri S.M Surana, ld.AR
सुनवाई कȧ तारȣख/Date of Hearing : 29-03-2012
घोषणा कȧ तारȣख/Date of Pronouncement: 30-03-2012
आदे श/ORDER
ौी एन ǒवजय कुमारन, , Ûयायीक सदःय,, Shri N. Vijaya Kumaran, Judicial Member This appeal by the department is for the assessment year 2006-07. It is directed against the order of the learned Commissioner of Income-tax (Appeals)-VIII, Kolkata dated. 21-05- 2010 on the issue of invocation of section 68 that share application money received from different companies . .
2. We have heard the learned DR and learned counsel for the assessee at length, considered the rival submissions and perused the material available on record. On careful consideration of submission, we find that the decision of the Hon'ble Supreme Court in the case of Lovely Export (P) Ltd reported in 216 CTR 195(SC) is directly applicable on the issue. Share capital raised by the assessee during the year under consideration by way of share application has been covered by the ratio of decision of the Hon'ble Supreme Court in the case of cited supra. ort (P) Ltd reported in 216 CTR 195(SC), wherein the Lordship observed "Can the amount of share money be regarded as undisclosed income under sec. 68 of IT Act, 1961? We find no merit in this Special Leave Petition for the simple reason that if the share application money is received by the assessee company from alleged bogus shareholders, whose names are given to the AO, then the Department is free to proceed to reopen their individual assessments in accordance with law. Hence, we find no infirmity with the impugned judgment."
3. The ITAT, Kolkata Benches, Kolkata has followed the orders/decisions in the case of M/s. Bear Bull Distributors (P) Ltd (ITA No.1731/Kol/2008 & ITA No.1652/Kol/2008) M/s. Howrah Gases Ltd (ITA No. 270/Kol/09), M/s. Yashwi Securities Pvt. Ltd (ITA No.1276/Kol/2008) and M/s. Dipajyoti Resources Pvt. Ltd (ITA No.1277/Kol/2008. The learned Commissioner of Income-tax (Appeals) following the said decision held that section 68 is not applicable and addition is deleted.
4. . Under the above circumstances and respectfully following the said decision of the Hon'ble Supreme Court in the case [cited supra], we have no hesitation in confirming the finding of the learned Commissioner of Income-tax (Appeals). We uphold the same
5. In the result, departmental appeal is dismissed.
यह आदे श खुले Ûयायालय मɅ सुनाया गया है THIS ORDER IS PRONOUNCED IN OPEN COURT ON Dt. 30-03-2012 Sd/- sd/-
( सी.डȣ.राव, लेखा सदःय ) (एन ǒवजय कुमारन, Ûयायीक सदःय)
( C.D.Rao, Accountant Member) ( N.Vijaya Kumaran, Judicial Member )
Dated: 30-03-2012
*PP Sr.PS/आदे श कȧ ूितिलǒप अमेǒषत/Copy of the order forwarded to:
1. अपीलाथȸ /Appellant- ITO, W 7(3), Aaykar Bhawan, 5th Fl., P-7, Chowringhee Sq., Kol-69. 2 ू×यथȸ/ Respondent : Sri Balaji Forest Products Pvt. Ltd 67/22 Strand Road, Kol-6.
3. आयकर किमशनर/ CIT, Kolkata,
4. आयकर किमशनर (अपील)/CIT(A)
5. वभािगय ूितनीधी/DR, Kolkata Benches, Kolkata [स×याǒपत ूित/True Copy] आदे शानुसार/ By order Asstt. Registrar ITA No.1427/Kol/10-C-NVK 2