PCIT-7, DELHI vs. M/S SANJIVANI INDUSTRIES PVT LTD

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ITA - 136 / 2023HC Delhi07 March 20232 pages
For Petitioner: SUNIL KUMAR AGARWAL
AI SummaryAllowed

What did the High Court hold?

The Tribunal ruled in favour of the assessee, holding that an addition under Section 68 for share application money and premium cannot be made solely based on a statement under Section 132(4) if the individual making the statement has no connection to the assessee.

What were the facts?

The Revenue appealed against an ITAT order concerning AY 2009-2010. The core issue was whether an addition made under Section 143(3) read with Section 153A should be sustained based on a statement made by an individual under Section 132(4).

What were the issues?

Whether an addition under Section 68 can be sustained solely on the basis of a statement made under Section 132(4) by a person unconnected to the assessee.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153A,Section 132(4),Section 68

AI-generated summary — verify with the full judgment below

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$~25 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 136/2023 & CM Nos.11139-40/2023

PCIT-7, DELHI

..... Appellant Through: Mr Sunil Agarwal, Sr Standing Counsel with Mr Shivansh B. Pandya, Jr Standing Counsel and Mr Utkarsh Tiwari, Adv.

versus

M/S SANJIVANI INDUSTRIES PVT LTD ......Respondent

Through: None.

CORAM:

HON'BLE MR. JUSTICE RAJIV SHAKDHER

HON'BLE MS. JUSTICE TARA VITASTA GANJU

O R D E R %

07.03.2023 [Physical Hearing/Hybrid Hearing (as per request)] CM No.11140/2023 1. Allowed, subject to the appellant filing legible copies of the annexures, at least three days before the next date of hearing. ITA 136/2023 & CM No.11139/2023 [Application filed on behalf of the appellant seeking condonation of delay in filing the appeal] 2. This appeal concerns Assessment Year (AY) 2009-2010. 3. The appellant/revenue seeks to assail the order dated 31.05.2022 passed by the Income Tax Appellate Tribunal [in short, “Tribunal”]. 4. The core issue which arises for consideration is: whether the addition made under Section 143(3) read with Section 153A of the Income Tax Act, 1961 [in short “Act”] should be sustained, as it is based on a statement made by, one, Mr Mul Chand Malu under Section 132(4) of the Act. ITA 136/2023

page 1 of 2 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 13:33:19

5.

The respondent/assessee‟s stand is, that Mr Mul Chand Malu was neither its promoter nor director. The respondent/assessee seems to assert, that Mr Mul Chand Malu had no connection with it. 6. The Tribunal via the impugned judgment has ruled in favour of the respondent/assessee, on the ground that the addition under Section 68 of the Act concerning money received by way of share application and share premium cannot be made solely based on a statement made by Mr Mul Chand Malu under Section 132(4) of the Act. 6.1 In this context, reference has been made to the judgment of a coordinate bench of this Court rendered in PCIT v. Best Infrastructure (India) Pvt. Ltd. 397 ITR 82. 7. Mr Sunil Agarwal, who appears on behalf of the appellant/revenue, says that a connected matter, i.e., ITA No.143/2022, titled Principal Commissioner of Income Tax Central 3 v. Kuber Khadyan Pvt Ltd. is listed before the Court on 19.07.2023. 8. Issue notice to the respondent/assessee via all modes, including e- mail. 9. List the matter on the same date i.e., 19.07.2023.

RAJIV SHAKDHER, J

TARA VITASTA GANJU, J

MARCH 7, 2023

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ITA 136/2023

page 2 of 2 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 13:33:19

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