ACIT CIRCLE-8(2), NEW DELHI vs. ESS AAR AUTOMOTIVE PVT LTD, NEW DELHI

ITA 9692/DEL/2019Status: DisposedITAT Delhi23 January 2026AY 2013-1415 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the forfeiture of shares due to non-payment of call money by the shareholder is a separate transaction from regular credits and cannot be equated with Section 68. The CIT(A) had rightly appreciated the facts and evidence, and the provisions of Section 56(ix) were not applicable for the assessment year in question.

What were the facts?

The assessee received share application money of Rs. 2.5 crores which was subsequently forfeited. The Assessing Officer (AO) treated the forfeited amount as income under Section 68, doubting the genuineness of the transaction and the source of funds.

What were the issues?

Whether forfeited share application money can be treated as income under Section 68 of the Income Tax Act, and the applicability of Section 56(ix) for the assessment year.

Which sections of the Income-tax Act were involved?

Section 68,Section 56(ix)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCHES F: NEW DELHI.

Before: SHRIS.RIFAUR RAHMAN & SHRI SUDHIR KUMAR

For Appellant: Ms. Rano Jain, Advocate, Shri Venktesh Choursia, Advocate, Ms. Mansi Jain, Advocate
For Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Hearing: 12.01.2026

PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER :

1.

The Revenue has filed appeal against the order of the Learned Commissioner of Income Tax (Appeals)-34, New Delhi [“Ld. CIT (A)”, for short] dated 15.10.2019 for the Assessment Year 2013-14. 2. Brief facts of the case are, assessee filed its return of income declaring income of Rs.39,54,870/- on 30.09.2013. The return was processed under section 143(1) of the Income-tax Act, 1961 (for short 'the Act'). The case was selected for scrutiny and statutory notices u/s 143(2) and 142(1) were issued and served on the assessee along with questionnaire. In response, ld. AR of the assess

The order continues below.

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