ITO, WARD-2(3), NEW DELHI vs. AMU LEASING PVT.LTD., NEW DELHI

1 ITA No. 1064/Del/2020 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”: NEW DELHI

BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER

ITA No. 1064 /DEL/20 Assessment Year: 2014-15

Income-tax Officer, Vs M/s Amu Leasing Pvt. Ltd., Ward-2(3), New Delhi. C/o Babubhai & Co., 152, Office Complex, Jhandewalan Extn., Phase-1, New Delhi-110055. PAN- AAACA0552C

APPELLANT RESPONDENT Assessee represented by Sh. Shantanu Jain, Adv. & Sh. Deepanshu Jain, Adv. Department represented by Sh. Kanv Bali, Sr. DR Date of hearing 24.07.2023 Date of pronouncement 31.07.2023

O R D E R PER ANUBHAV SHARMA, JM: The Revenue has come in appeal against the order dated 30.12.2019 passed

by the Commissioner of Income Tax (Appeals)-32, New Delhi (hereinafter

referred as “learned First Appellate Authority” or in short “FAA”) in Appeal no.

241/2017-18, for the assessment year 2014-15, arising out of the assessment order

dated 14.12.2016 u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred as

2 ITA No. 1064/Del/2020 the “Act”), passed by the Income-tax Officer, Ward 2(3), New Delhi, (hereinafter

referred in short as “Ld. AO”).

“1. The Ld. CIT(A) has erred in deleting the addition u/s 68 of the IT Act of 1961 which was received in the form of share capital of Rs. 1,80,00,000/- particularly when the assessee company has failed to satisfy the identity, creditworthiness and the genuineness of the transaction.

not appreciating the fact that in response to the show cause notice dated 2.12.2016

the assessee had failed to produce the directors of the two companies and Ms.

Meena Gupta and further genuineness and correctness of the transactions were not

established. He supported the findings of Ld. AO.

filed its ITR for A.Y. 2014-15 on 31.03.2015 declaring income of Rs. 14,253/-.

The case was selected for scrutiny under CASS. During the course of assessment

proceedings, Ld. AO observed that assessee has shown share capital of Rs.

3 ITA No. 1064/Del/2020 2,10,00,000/- . Compared to last year there is an increase of Rs. 1,80,00,000/-.

Assessee was asked to provide complete details of persons from whom share

capital have been received during the year i.e. as on 31.03.2014 along with copy of

ITR, confirmations & bank statements. In response, assessee has furnished the

following details of persons from whom he has taken share capital during the year.

S. Paty Name Address Amount No. 1 Maharathi Steels Pvt. Ltd. RR-12, MianWali Nagar, 1,00,00,000/- New Delhi-110087 2 Real Frame Infrastructure RR-12, MianWali Nagar, 75,00,000/- Pvt. Ltd. New Delhi-110087 3 Meena Gupta RR-12, MianWali Nagar, 5,00,000/- New Delhi-110087 1,80,00,000/-

6.1. Ld. AO observed that assessee did not furnish the confirmations from the

parties. AO issued notices u/s 133(6) of the Act dated 19.08.2016 to all the three

parties, which were responded by them and furnished necessary confirmations and

other details. Further, summons u/s 131 was issued to Maharathi Steels Pvt. Ltd.,

M/s Realframe Infrastructure Pvt. And Meena Gupta, but they neither attended nor

any written reply was received. Accordingly, AO made an addition of Rs.

1,80,00,000/- u/s 68 of the Act as unexplained credits.

6.2 It comes further that before the learned CIT(Appeals) assessee had filed the

additional evidence and written submissions giving the explanation of credibility

4 ITA No. 1064/Del/2020 of transaction for which learned CIT(Appeals) had called for remand report from

the Ld. AO and having considered the remand report learned CIT(Appeals)

observed that before learned AO during the remand proceedings assessee was able

to produce directors of M/s Maharathi Steels Pvt. Ltd. and Realframe Infrastructure

Private Limited and Statement of Ms. Meena Gupta, Director of M/s Amu Leasing

Pvt. Ltd. was also recorded.

6.3 It is established that the two companies M/s Maharathi Steels Pvt. Ltd. and

Realframe Infrastructure Private Limited had earned dividend income and learned

CIT(Appeals) had also examined ITR and financial statement of M/s Ardent Steel

Ltd., as submitted by the assessee, which revealed that said company had total

revenue of Rs. 373.5 crores during the assessment year 2014-15 and had declared

total income of Rs. 49.13 crores on which it paid Rs. 12.85 crores of taxes. The

dividend money was transferred in the bank accounts of these two companies,

which was invested in the appellant company as share capital.

6.4 As regards to Ms. Meena Gupta, she explained that source of cash which

was withdrawn from bank account prior to investment in the assessee company

was by way of amount received from one Mr. Jitin Garg as advance for sale of land

at Nizam Pur and confirmation from Mr. Jitin Garg along with relevant detail was

filed. She also explained that later on, as deal did not materialize, the amount was

5 ITA No. 1064/Del/2020 returned to Mr. Jitin Garg out of sale proceeds of the land sold to another buyer

Ms. Renu Garg.

6.5 Learned AO had not made any submissions countering these factual aspects

in the remand report. Learned CIT(Appeals) primarily relying upon the aforesaid

facts, supported with all relevant documents about identity and creditworthiness of

the investors of the share capital held the transactions to be genuine. In the light of

aforesaid, there is no error in the finding of learned CIT(Appeals). Ground raised has no substance. The appeal of the Revenue is dismissed.

Order pronounced in open court on 31.07.2023.

Sd/- Sd/- (M. BALAGANESH ) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI

6 ITA No. 1064/Del/2020

Draft dictated 25.07.2023 Draft placed before author 25.07.2023 Approved Draft comes to the Sr. PS/PS Order signed and pronounced on File comes to P.S. File sent to the Bench Clerk Date on which file goes to the AR Date on which file goes to the Head Clerk Date of dispatch of Order Date of uploading on the website