VARIA ALUMINUM PVT. LTD.,AHMEDABAD vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-4(1)(2), AHMEDABAD

This appeal is filed by the assessee against the order dated 17.02.2017 passed by the Ld. CIT(A)-8, Ahmedabad for A.Y. 2013-14.

raised by the assessee read as under:

1. The ld. CIT(A) has erred in law and on facts in confirming the addition of Rs. 34,85,00,000/- as income from other sources u/s. 56(2)(viib) of the Act without proper appreciation and consideration of facts of the case and submissions filed on the ground that the consideration received for issue of shares exceeds the face value of such shares. In view of facts and submissions filed, the impugned addition of Rs. 34,85,00,000/- requires to be deleted. 1.1 The ld. CIT(A) has further erred in law and on facts while appreciating the fact that during the previous year relevant to Asst. Year 2013-14, the appellant company has in fact not received any share application money amounting to Rs. 34,85,00,000/- or no shares have been issued to the tune of Rs. 34,85,00,000/- during the said previous year. In view of the facts and submissions coupled with Varia Aluminium Pvt. Ltd. vs. DCIT Asst.Year –2013-14 - 2 - supporting evidences filed, the impugned additions of Rs. 34,85,00,000/- requires to be deleted being factually incorrect and unjustified. The appellant craves leave to add, amend, alter, modify or delete any of the above grounds as well as to submit additional grounds at the time of hearing of the appeal.”

3. The assessee company was engaged in the business of manufacturing of Aluminum Foils. The assessment was completed on 15.03.2016 determining total income at Rs. 34,58,04,662/- as against the return loss of Rs. (-) 30,52,290/- by making addition on account of delayed payment of employees’ contribution to Provident Fund, disallowance under Section 35D and addition under Section 56(2)(viib) of the Act.