Loading judgment…
Facts
The Revenue appealed against the CIT(A)'s order deleting an addition made by the Assessing Officer (AO) for Assessment Year 2012-13, concerning share capital under Section 68 of the Income Tax Act. The assessee had submitted evidence to the CIT(A), which was forwarded to the AO for a remand report.
Held
The Tribunal upheld the CIT(A)'s decision, noting that the AO's remand report contained no adverse comments regarding the furnished documents and explanations concerning equity share investment. Since the Revenue failed to dislodge the findings of the CIT(A) or the remand report, the Tribunal found no reason to intervene.
Key Issues
Validity of the addition made under Section 68 of the Income Tax Act concerning share capital, and the genuineness and creditworthiness of the share subscribers and source of funds.
Sections Cited
68, 131, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, KOLKATA
O R D E R PER GEORGE MATHAN, JM:
This is an appeal filed by the Revenue against the order of the National Faceless Appeal Centre, Delhi [the learned CIT (A)] in appeal no. ITBA/NFAC/S/250/2024-25/1068354810(1) dated 05.09.2024 for the A.Y. 2012-13.
Shri Akkal Dudhwewala represented on behalf of the assessee and Shri P.N. Barnwal represented on behalf of the Revenue.
3. The appeal of the Revenue is time barred by 138 days. Considering the facts and circumstances of the case, we find that there is plausible reason to condone the delay and the delay of filing the appeal is hereby condoned.
4. At the time of hearing, the ld. Sr. DR submitted that the assessee has not been able to produce all evidences before the ld. AO. It was
In reply, the ld. AR submitted that evidences had been produced before the ld. AO but the ld. AO did not consider any of the evidences. It was further submission that the evidences produced before the ld. CIT (A) was sent by the ld. CIT (A) to the ld. AO and a remand report was called for from the ld. AO which was shown at pages 86 to 91 of the Paper Book. It was the submission that the ld. AO did not give any adverse inference in the remand proceedings. The remand report dated 04.04.2018, reads as follows: -
“To The Commissioner of Income Tax (Appeal)-1, Kolkata, Aaykar Bhavan, P-7, Chowringhee Square, Kolkata-700069 Respected Sir Sub: Calling for Remand Report in the case of M/s Infinity Housing Projects Private Limited having PAN-AABC17965C for the Assessment Year 2012-13 in Appeal No. 980/CIT(A)-1/W/2(3)/15-16 matter regarding. Ref: Your Letter No. F.No.CIT(A)-1/Kol/Remand/16-17/1391 dated 28.12.2016 and this office's No. ITO Ward2(3)/Remand & Appraisal/16-17/930 dated 11.01.2017 Kindly refer to above. As directed by your goodself for furnishing a remand report in respect of the above mentioned assessee on the following points. (i) To submit your comments on the written submissions/documents submitted by the appellant, including admission of fresh/additional documents filed, if any which were filed during the appellate proceedings and to comment upon the applicability of provision of Rule 46A. (ii) To verify the genuineness of the sources of issued and paid up 9,88,750 equity shares Face Value of Rs. 10/- with premium of Rs. 295/. Therefore, total capital raised of Rs. 30,15,68,750/- during the AY 2012-13 after issuing summons ws 131 to verify the identity and genuineness of the impugned cash creditors in respect of payments made by the directors/subscribers to share capital, their identity, genuineness for the impugned amount added u/s 68 to the total income of the assessee company.
SI No Particulars Page No.
Copy of the ITR Acknowledgement along with annual financial 1-13 statements for the year ended 31.03.2012 2. List of the shareholders of the assessee company as on 14 31.03.2012.
List of allottees to whom 9,88,750 Equity shares issued during the 15 year were allotted by the assessee company.
Copy of Form 2 filed with the ROC in respect of share capital issued 16-21` during the F.Y. 2011-12 5. Copy of the Board Resolution passed by the assessee’s holding 22 company, M/s Infinity Townships Pvt. Ltd. to subscribe to the shares of the assessee company 6. Copy of the Certificates of Incorporation of the share subscriber, 23 M/s Infinity Townships Pvt Ltd.
Copy of the audited financial statements of the share subscriber, 24-42 M/s Infinity Townships Pvt Ltd 8. Copy of the Acknowledgement of the share subscriber, M/s 43-49 Infinity 8. Townships Pvt Ltd. for the AY 2012-13 along with the order passed u/s 143(3) by the ITO, Ward 2(3), Kolkata dated 30.03.2015 9. Copy of the relevant bank statement of the share subscriber, M/s 50-73 Infinity 9. Townships Pvt Ltd. for the FY 2011-12 evidencing payment of share application monies through proper banking channel.
Statement giving the details of source of funds and also the source 74-79 of the source of funds in respect of share capital missed by the assessee company during the year