Gujarat High Court
Commissioner Of Income Tax-Iii vs Rockline Projects Ltd - Opponent(S) on 20 June, 2011
Author: Akil Kureshi
Bench: Akil Kureshi
TAXAP/2053/2009 1/3 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX APPEAL No. 2053 of 2009
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COMMISSIONER OF INCOME TAX-III - Appellant(s)
Versus
ROCKLINE PROJECTS LTD - Opponent(s)
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Appearance :
MR MANISH R BHATT Sr Advocate with Ms MAUNA M BHATT for Appellant
None for Opponent
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CORAM : HONOURABLE MR.JUSTICE AKIL KURESHI
and
HONOURABLE MS JUSTICE SONIA GOKANI
20th June 2011
ORAL ORDER (Per : HONOURABLE MR.JUSTICE AKIL KURESHI)
Revenue is in appeal, raising the following questions for our consideration :-
[A] "Whether the Appellate Tribunal is right in law and on facts in deleting the entire addition made on account of net income from construction activity ?"
[B] "Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by CIT (A) deleting the addition of Rs. 18,53,000/= made under Section 68 of the Act ?"
With respect to Question No.A, counsel for the Revenue HC-NIC Page 1 of 3 Created On Thu Jun 23 02:28:25 IST 2016 TAXAP/2053/2009 2/3 ORDER pointed out that similar question is being considered in Tax Appeal No. 945 of 2009 and connected appeals.
With respect to Question No. B, however, we find that the issue pertains to additions made by the Assessing Officer under Section 68 of the Income Tax Act, 1961. The CIT [A] as well as the Tribunal both deleted such additions, appreciating facts and evidence on record. In particular, the Tribunal considered the issue in the following manner :-
"39. We have heard the rival submissions and perused the orders of the lower authorities and the material available on record. It is observed that during the year under consideration, the assessee has received Rs. 18,53,000/= as call-money in respect of public issue. The assessee submitted before the A.O., the details of persons from whom the above call money was received which was Rs. 16,49,000/= from Preksha Finance Limited., Mumbai and Rs. 2,04,000/= from Ashok Kothari. It is observed that the above persons applied for allotment of shares of the assessee company in public issue in earlier years. The share application money paid by these persons were accepted as genuine in the assessment of earlier years after finalization of appeal. The identity of shareholders are not in doubt as the share application money paid by them in the earlier year was accepted. After making inquiry, the Revenue could not bring any material to show that call-money received during the HC-NIC Page 2 of 3 Created On Thu Jun 23 02:28:25 IST 2016 TAXAP/2053/2009 3/3 ORDER year from the aforesaid person were in fact the undisclosed income of the assessee company which was brought in the books through the said persons. In the absence of any such positive material, the order of the Ld. CIT (A) requires to be confirmed. We do so and the ground of appeal of the Revenue is dismissed."
We see no infirmity in the conclusion of the Tribunal on this particular issue. The same is, therefore, not required to be considered.
In the result, Tax Appeal is admitted for consideration of Question No. A alone. To be heard with Tax Appeal No. 945 of 2009 and connected Appeals.
{Akil Kureshi, J.} {Ms. Sonia Gokani, J.} Prakash* HC-NIC Page 3 of 3 Created On Thu Jun 23 02:28:25 IST 2016