INCOME TAX OFFICER WARD-4(2) vs. M/S KANHAIYA MINING & MINERALS PVT.LTD., NAGPUR

This bunch of seven appeals preferred by the Revenue emanates from the respective orders of the Ld. CIT(Appeals), Nagpur for the assessment years 2006-07, 2008-09 and 2009-10 as per caption mentioned hereinabove and as per the grounds of appeal on record.

Broadly, the issue raised in all these appeals pertains to the share application money including share premium for allotment of shares which the assessee company received from various companies.

At the very outset, it was brought to our notice by the Ld. AR of the assessee that they are withdrawing Annexure-B (hearing through video conference) and in this respect, the assessee submitted that though they have opted for not hearing of the appeal through video conference but at the present moment vide letter dated 17.10.2019 before us, the assessee has withdrawn Annexure-B. We, therefore, allow the assessee to withdraw Annexure-B and hearing takes place through video conference. That during the course of hearing through e-Court, the Ld. AR further stated that the objection has been raised by the Ld. DR that the Ld. CIT(A) who has passed order on 30.06.2014, was unable to have the opportunity to refer to the judgment of the Hon’ble Supreme Court of India in the case of Pr. Commissioner of Income Tax Vs. NRA Iron & Steels Pvt. Ltd. dated 05th March, 2019 which pertains to the issues raised in all these appeals.

The Ld. DR submitted that in view of the judgment of the Hon’ble Supreme Court (supra.), the matter may be remitted back to the file of the Ld. CIT(A) for considering the facts and circumstances in all these cases in the backdrop of the findings and opinion rendered by the Hon’ble Apex Court therein. The Ld. AR does not have any objection if these cases are remitted back to the First Appellate Authority and to this effect, the Ld. AR submitted by way of written submissions dated 17.10.2019 before us.

We have perused the case records and heard the rival contentions. We have also considered the judicial pronouncements placed before us specifically the judgment of the Hon’ble Supreme Court in the case of Pr. Commissioner of Income Tax Vs. NRA Iron & Steels Pvt. Ltd. dated 05th March, 2019. The issues raised in all these appeals pertains to share application money and share premium etc. These issues in the present scenario needs to be appreciated in the backdrop of the findings and opinion of the Hon’ble Apex Court rendered in the above mentioned case (supra.). We also observe that the order passed by the respective Ld. CIT(A) was in the year 2014 and so far as the present date is concerned, there have been much development in this area with regard to the various judgments of the Higher Forum. In the interest of justice, we set aside the respective orders of the Ld. CIT(A) in all these cases and remit the matter back to their file to consider these issues and adjudicate the same in the light of the decision of the Hon’ble Supreme Court in the case of Pr. Commissioner of Income Tax Vs. NRA Iron & Steels Pvt. Ltd. dated 05th March, 2019 and also various other decisions rendered by the Higher Forum on these issues. Needless to say, the Ld. CIT(A) shall grant reasonable opportunity of hearing to the assessee in accordance with law.

In the result, all these appeals of the Revenue are allowed for statistical purposes.