CIT v. Divine Leasing & Finance Ltd.

Principal Commissioner of Income Tax - 7 vs. Bikram Singh

The appeal is allowed in the above terms

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

…sactions and the documents filed by the Assessee to defend the deletions made by the ITAT and submitted that the genuineness of each transaction is in severe doubt. He also relied upon CIT ITA No.55/2017 Page 13 of 25 v. Divine Leasing & Finance Ltd. (2008) 299 ITR 268 (Del) (hereafter ‘Divine Leasing’) and CIT v. Kamdhenu Steel & Alloys Ltd. 361 ITR 220 (hereafter ‘Kamdhenu’). Respondent-Assessee’s Submissions 20. Mr. C. S. Aggarwal, learned Senior counsel for the Respondent-Assessee vehemently urged that in this case the Assessee has produced a large number of the documents to establish the identity, creditwo…

Principal Commissioner of Income Tax, Delhi-2 vs. Best City Realtors (India) Pvt. Ltd

The appeals of the Revenue are dismissed but in the

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

…Page 18 of 34 pronouncement that under these circumstances, section 68 cannot be invoked. a) CIT v. Stellar Investment Ltd. 192 ITR 287. b) Sophia Finance Ltd. 205 ITR 98 (FB) (Del). c) CIT v. Divine Leasing and Finance Ltd 299 ITR 268(Del.) d) CIT v. Lovely Exports (P) Ltd. 319 ITR5 (ST) 19. The Assessee also raised the point that the statement of Mr. Tarun Goyal had been recorded behind the back of the Assessee and in the absence of cross-examination such evidence was of no evidentiary value. It was further specifically pointed out that “statement of Shri Tarun Goyal h…

Principal Commissioner of Income Tax, Delhi-2 vs. Best Realtors (India) Pvt. Ltd

The appeals of the Revenue are dismissed but in the

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

…Page 18 of 34 pronouncement that under these circumstances, section 68 cannot be invoked. a) CIT v. Stellar Investment Ltd. 192 ITR 287. b) Sophia Finance Ltd. 205 ITR 98 (FB) (Del). c) CIT v. Divine Leasing and Finance Ltd 299 ITR 268(Del.) d) CIT v. Lovely Exports (P) Ltd. 319 ITR5 (ST) 19. The Assessee also raised the point that the statement of Mr. Tarun Goyal had been recorded behind the back of the Assessee and in the absence of cross-examination such evidence was of no evidentiary value. It was further specifically pointed out that “statement of Shri Tarun Goyal h…

Principal Commissioner of Income Tax, Delhi-2 vs. Best City Developers India Pvt. Ltd

The appeals of the Revenue are dismissed but in the

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

…Page 18 of 34 pronouncement that under these circumstances, section 68 cannot be invoked. a) CIT v. Stellar Investment Ltd. 192 ITR 287. b) Sophia Finance Ltd. 205 ITR 98 (FB) (Del). c) CIT v. Divine Leasing and Finance Ltd 299 ITR 268(Del.) d) CIT v. Lovely Exports (P) Ltd. 319 ITR5 (ST) 19. The Assessee also raised the point that the statement of Mr. Tarun Goyal had been recorded behind the back of the Assessee and in the absence of cross-examination such evidence was of no evidentiary value. It was further specifically pointed out that “statement of Shri Tarun Goyal h…

ITO, New Delhi vs. M/S. Greenland Finance and Leasing Pvt. Ltd., New Delhi

Appeal is dismissed

Bench: Shri I. C. Sudhir & Shri O. P. Kanti.T. Appeal No. 1528/Del/2012 Assessment Year : 2003-04. Income Tax Officer, M/S. Greenland Finance & Ward : 12 (2), Vs. Leasing Pvt. Ltd., New Delhi. 306, Sharp Bhawan, Commercial Complex, Azadpur, Delhi – 110 033. Pan : Aaacg 3755 F (Appellant) (Respondent)

…me Tax Act. The facts of the cases cited by the appellant are identical with that of the instant case. Further, the reliance is also placed on following decisions of Apex Court :- 1 CIT Vs. Orissa Corporation 159 ITR 78 9SC); 2 Divine Leasing and Finance Ltd. 299 ITR 268. 9.5 The appellant in its submission has also relied upon the latest judgment of the Apex Court in the case of CIT v. Lovely Export 299 ITR 268 (SC) which has confirmed the order of the Delhi High Court. It has been held by the Hon'ble Court that once the identify of the share holders have been established, even if there is a case of bogus share…

ITO, New Delhi vs. M/S Oriental International Coy Pvt. Ltd., New Delhi

Bench: Shri I.C. Sudhir & Shri B.P. Jainassessment Year 2007-08 Ito, Vs. Oriental International Ward-13(4), Room No.219, Coy Pvt. Ltd., C.R. Building, Cit(A)-8/1A, Vasant New Delhi. Vihar, New Delhi Pan: Aaaco 1309F (Appellant) (Respondent) Revenue By : Shri Rajesh Kumar, Sr.D.R, Assessee(S) By : Shri R.S. Singhvi, C.A. & Shri Satyajeet Goel, C.A. सुनवाई क" तार"ख/Date Of Hearing : 13/04/2017 घोषणा क" तार"ख /Date Of Pronouncement: 28/04/2017 Order Per B.P. Jain

…D has not produced anything on record to show how the share application money was tainted money of the assessee company which was routed through the share subscriber company. The Hon'ble Delhi High Court in the case of CIT Vs. Divine Leasing And finance Ltd., 299 ITR 268, observed that if the AO fails to unearth any wrong or illegal dealings, he cannot adhere to his suspicion and treat the subscribed capital as undisclosed income of the company. It is to be further noted that mere denial by Sh. Suresh Chand Garg would not ipso facto lead to the conclusion that the transaction was hit by Section 68 of the Act. We…

M/S. Prabhatam Investment Pvt. Ltd., Delhi vs. ACIT, New Delhi

Bench: Sh. Bhavnesh Saini & Sh.L.P.Sahu

…ot undertake any verification. The CIT(A) deleted the addition by relying upon the decision of the Hon’ble Apex Court in the case of Lovely Exports Pvt.Ltd. (supra) and judgement of Delhi High Court in the case of CIT vs Divine Leasing & Finance Ltd. [2008] 299 ITR 268. The ITAT confirmed the opinion of the Ld.CIT(A). Hon’ble High Court in view of the above findings noted that the assessee had provided several documents that could have showed light into whether truly the transactions were genuine. The assessee provided details of share applicants i.e. copy of the PAN, Assessment particulars, mode of amount inv…

ITO, New Delhi vs. Mr. Joginder Pal Singh, New Delhi

Appeal stands dismissed

Bench: Shri N.K. Saini & Shri Sudhanshu Srivastava

…scussed in the assessment order was not sufficient to contradict the transaction through banking channel. The Ld. CIT (Appeals) also relied on the judgement of the Hon’ble Delhi High Court in the case of CIT versus Divine Leasing and Finance Ltd reported in 299 ITR 268 for the proposition that the burden of proof can seldom be discharged to the hilt by the assessee and if the AO harbours doubt of legitimacy to any subscription, he is empowered to carry out thorough investigations but if the AO fails to unearth any wrong or illegal dealings, he cannot adhere to his suspicions and treat the subscribed capital…

Pr. Commissioner of Income Tax-5 vs. Laxman Industrial Resources Ltd

The appeal is dismissed

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

…free to proceed to assess them individually in accordance with law. The Supreme Court did not find any infirmity with the impugned judgment of the High Court which was a common order along with the decision in CIT v. Divine Leasing & Finance Ltd. [2008) 299 ITR 268 (Delhi). Since the Commissioner of Income-tax (A) has not only found that the identity of each of the shareholders stood established, but has also examined the fact that each of them were income-lax assessees and had disclosed the share application money in their accounts which were duly reflected in their Income-tax return as well as in t…

M/S. R.P. Singh & Co. Pvt. Ltd., New Delhi vs. ACIT, New Delhi

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2000-01 Vs. The Acit, Circle-15(1), C.R. M/S. R.P. Singh & Co. Pvt. Ltd., 382, Bhera Enclave Pachim Building, I.P. Estate, New Delhi Vihar, New Delhi Pan : Aaacr5778B (Appellant) (Respondent) Appellant By S/Sh. J.S. Kochar & U.S. Kochar, Advocates. Respondent By Sh. F.R. Meena, Sr.Dr Date Of Hearing 05.01.2017 Date Of Pronouncement 10.03.2017 Order Per O.P. Kant, A.M.: This Appeal By The Assessee Is Directed Against The Order Of Learned Commissioner Of Income Tax (Appeals)-Xviii, New Delhi, Dated 14.08.2012, For Assessment Year 2000-01 Raising The Following Grounds : 1) The Learned Commissioner Of Income Tax (Appeals) Erred In Law By Confirming The Addition Of Rs.13,90,000/- Received As Share Application Money, Despite The Fact That Out Of A Total Of 29 Share Applicants. I. 19 Applicants Whose Aggregate Investments Were Rs.10,15,000 Were Produced Before The A.O. & They Confirmed Their Investments. Ii. 2 Applicants With Aggregate Investments Of Rs.90,000 Had Since Died & Their Death Certificates Were Filed. Iii. Request Was Made To The Assessing Officer To Issue Summons U/S 131 To 4 Applicants With Aggregate Investment

…thus no addition in terms of section 68 of the Act, could be made in the case of the assessee. As regard to first argument 11 AY: 2000-01 of the assessee, we may like to note that in the case of CIT Vs. Divine Leasing and Finance Private Limited reported in 299 ITR 268, Hon’ble Delhi High Court has examined the issue of onus under section 68 of the Act in case of public limited companies viz-a-viz private limited companies. In the said case, the assessee was a public limited company. The case of Lovely Exports (P) Ltd in ITA No. 953/2006 was also heard alongwith the case of Divine Leasing & Finance Ltd., having…

DCIT, New Delhi vs. M/S. Satya Prakash & Bros Pvt. Ltd., New Delhi

In the result appeal filed by the revenue and cross objection filed by assessee stands allowed for statistical purposes

Bench: Sh. N. K. Saini & Smt. Beena A. Pillai

…uld prove the shares being actually issued to the subscribers. In the absence of all these details we are unable to ascertain that shareholders have been established as per requirement of Hon’ble Supreme Court in the case of CIT vs. lovely exports reported in 299 ITR 268. We Page 7 of 9 ITA No 513/Del/10 & CO No. 197/Del/10 (AY2002-03) are, therefore, inclined to set aside the addition back to the files of Ld. CIT(A) in order to ascertain all the relevant documents necessary for establishing the alleged money received by the assessee to be in the nature of share capital. Ld.CIT(A) may call for all necessary/…

ITO, New Delhi vs. M/S. Prakash Colour (P) Ltd., New Delhi

In the result, the appeal of the department is dismissed

Bench: Sh. N. K. Saini, Am & Smt. Beena Pillai, Jm Ita No. 1176/Del/2011 : Asstt. Year : 2007-08 Income Tax Officer, Vs M/S Prakash Colour (P) Ltd., 15A, 2Nd Floor, Sri Nagar Colony, Ward-14(3), New Delhi Near Bharat Nagar, New Delhi (Appellant) (Respondent) Pan No. Aaacp5463B Assessee By : Sh. Ved Jain, Adv., Sh. Ashish Chadha & P. Srivastava, Cas Revenue By : Sh. F. R. Meena, Sr. Dr Date Of Hearing : 29.09.2016 Date Of Pronouncement : 16.12.2016 Order Per N. K. Saini, Am: This Is An Appeal By The Department Against The Order Dated 01.12.2010 Of Ld. Cit(A)-Xvii, New Delhi.

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’, NEW DELHI Before Sh. N. K. Saini, AM and Smt. Beena Pillai, JM ITA No. 1176/Del/2011 : Asstt. Year : 2007-08 Income Tax Officer, Vs M/s Prakash Colour (P) Ltd., 15A, 2nd Floor, Sri Nagar Colony, Ward-14(3), New Delhi Near Bharat Nagar, New Delhi (APPELLANT) (RESPONDENT) PAN No. AAACP5463B Assessee by : Sh. Ved Jain, Adv., Sh. Ashish Chadha & P. Srivastava, CAs Revenue by : Sh. F. R. Meena, Sr. DR Date of Hearing : 29.09.2016 Date of Pronouncement : 16.12.2016 ORDER Per N. K. Saini, AM: This is an appeal by the department against the order dated 01.12.2010…

ACIT, New Delhi vs. M/S. Habitat Royale Projects Pvt. Ltd., New Delhi

In the result, the Revenue’s Appeal stands dismissed

Bench: Shri H.S. Sidhu & Shri O.P. Kant

…made by the applicant actually emanated from the coffers of the assessee, so as to enable it to be treated as undisclosed income of the assessee. Further the following observation of the jurisdictional H.C. in case of CIT vs. Divine Leasing and Finance Ltd. (207 CTR 38), which has been quoted with approval in the case of Dwarkadhish Investment (Supra) are also quite relevant viz. “In this analysis, a distillation of the precedents yields the following propositions of law in the context of s. 68 of the IT Act. The assessee has to prima facie prove (1) the identity of the creditor/subscriber, (2) the genuineness…