CIT v. Divine Leasing & Finance Ltd.

Assistant Commissioner of Income Tax 15(2)(1), Mumbai vs. M/S.N.Jp Trading Company, Mumbai

In the result, the appeal filed by the revenue stands dismissed with no order as to cost

Bench: Shri Rajesh Kumar & Shri Amarjit Singhassessment Year: 2008-09 Acit 15(2)(1), M/S. N.J.P Trading Room No.357, Company, 3Rd Floor, B-12, 2N Floor, Aayakar Bhavan, Vs. Navin Manjau, M.K. Road, S.L. Road, Mumbai - 400020 Mulund (West), Mumbai – 400 080 Pan: Aaccn2258A (Appellant) (Respondent) Present For: Assessee By : Shri Mari Jain, A.R. Revenue By : Ms. Kavita P. Kaushik, D.R. Date Of Hearing : 24.09.2020 Date Of Pronouncement : 07.10.2020 O R D E R Per Rajesh Kumar: The Present Appeal Has Been Preferred By The Revenue Against The Order Dated 12.06.2017 Of The Commissioner Of Income Tax (Appeals) [Hereinafter Referred To As The Cit(A)] Relevant To Assessment Year 2008-09. 2. The Only Effective Issue Raised By The Revenue In The Various Grounds Of Appeal Is Against The Deletion Of Addition Of Rs.1,80,00,000/- By Ld. Cit(A) As Made By The Ao Under Section 68 Of The Act.

…astle P. Ltd reported in 56.taxmann.com 18(SC)/(2015) 230 taxman.268 SC) decision of Hon'ble Jurisdictional High Court and in the case of Nemi Chand Kothari reported in (2003) 264 ITR 254 (Gau), the decision in CIT Vs. Divine Leasing & Finance Ltd reported in 299 ITR 268 (Del) and decision of Hon'ble S.C in the case of CIT Vs. Lovely Exports P. Ltd reported in 216 CTR 195(SC). It is an admitted and undisputed fact that the assessee has not proved on record any transaction in terms of cash money being deposited by assessee or any cash transaction by way of share subscription. Thus, in a recent decision of Hon'ble…

Vodafone India Limited, Mumbai vs. Deputy Commissioner of Income Tax, Circle 7(3), Mumbai

In the result, the appeal of the assessee is allowed

…tion that the assessee was earning money outside the books of account and bringing it as its share capital. Hence, Section 68 would not apply to the case of the assessee. Further Hon‟ble Delhi High Court in the case of CIT Vs Divine Leasing & Finance Limited (158 Taxmann 440) laid down following proposition in the context whether receipt of share capital is genuine one or not  The identity of the subscriber; The genuineness of the transaction, namely, whether it has been transmitted through  banking or other indisputable channels;  The creditworthiness or financial strength of the subscriber; If relevant detai…

Asst CIT 9(2)(1), Mumbai vs. Bygging India P.Ltd, Mumbai

Bench: Shri Rajesh Kumar & Shri Amarjit Singhassessment Year: 2010-11 Acit 9(2)(1), M/S. Bygging India Pvt. Room No.204, Ltd., 2Nd Floor, 9, R.N.A. Arcade, Vs. Aayakar Bhavan, Lokhandwala Complex, M.K. Road, Andheri West, Mumbai - 400020 Mumbai – 400053 Pan: Aaacb0642E (Appellant) (Respondent) Present For: Assessee By : Shri Satish R. Mody, A.R. Revenue By : Ms. Kavita P. Kaushik, D.R. Date Of Hearing : 19.03.2020 Date Of Pronouncement : 15.07.2020 O R D E R

…bmitted the documents on 11.03.2013 and the AO has confirmed this facts in the assessment order in para 4.8. 3.7 According to the A/R of the appellant the Apex Court has decided this issue in the following cases i. CIT vs. Divine Leasing & Finance Ltd. (2008) 299 ITR 268 (Del) ii. CIT vs. Lovely Exports (P) Ltd. (2008) 216 CTR195 (SC) In the case of Lovely Exports (P) Ltd. the Apex Court held to the extent that the AO is free to proceed to reopen the individual assessments of the bogus share holders but the share application money cannot be regarded as undisclosed income of the assessee company. The head note is…

JCIT (OSD)- 9(3)(1), Mumbai vs. Dilip Pajwani Developers, Mumbai

In the result, the appeal filed by the revenue is hereby ordered to be dismissed

Bench: Shri Rajesh Kumar, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.3050/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2012-13) Jcit (Osd)-9(3)(1) बिधम/ M/S. Dilip Pajwani 215, 2Nd Floor, Aayakar Developers Vs. Bhavan, M.K. Marg, 8/66, Varma Nagar, Off, Azad Road, Andheri (E), Mumbai-400020. Mumbai-400069. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaccd1949E (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Drop Singh Meena (Sr. Ar) Assessee By: Shri Paresh Shaparia सुनवाई की तारीख / Date Of Hearing: 14/11/2019 घोषणा की तारीख /Date Of Pronouncement: 29/01/2020 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 23.02.2018 Passed By The Commissioner Of Income Tax (Appeals) -16, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2012- 13. 2. The Revenue Has Raised The Following Grounds: -

…cannot be doubted. The revenue could not prove that the money received by the appellant in the form uf shore application has come from its own sources. No evidences regarding this have been brought on record by the AO. b. CIT vs. Divine Leasing & Finance Ltd. 299 ITR 268 7 A.Y.2012-13 Hon’ble Delhi High Court held that burden of proof can seldom be discharged to the hilt by the assessee. If the AO harbours doubts of the legitimacy of any subscription he is empowered, rather duty-bound, to carry out thorough investigations. But if the A.O. fails to unearth any wrong or illegal dealings, he cannot obdurately adher…

ITO 9 (1)(4), Mumbai vs. Ashiana Homes Marts Pvt. Ltd., Mumbai

The appeal stand dismissed

Bench: Hon’Ble Shri C.N. Prasad, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…t be doubted. The revenue could not prove that the money received by the appellant in the form of share application has come from its own sources. No evidences regarding this have been brought on record by the AO. b . In CIT Vs. Divine Leasing & Finance Ltd. 299 ITR 268 the Hon'ble Delhi High Court held proof can seldom be discharged to the hilt by the assessee. If the AO harbors 11 Ashiana Home Marts Private Limited Assessment Year-2009-10 doubts of the legitimacy of any subscription he is empowered, rather duty-bound, to carry out thorough investigations. But if the AO fails to unearth any wrong or illegal de…

Asst CIT Cen Cir 3, Thane vs. Credential Equities P. Ltd, Bhayander

In the result, the appeal of Revenue dismissed

Bench: Shri R.C. Sharma & Shri Pawan Singh: A.Y : 2009-10

…e primary onus casted upon it to prove the identify, genuineness and creditworthiness of the investors?" 3. However, in view of the judgment of the Hon'ble Supreme Court in the case of Commissioner of Income Tax vs. Lovely Exports (P) Ltd., reported in (2008) 299 ITR 268 (SC), wherein It has been held as under: "If the share application money is received by the assessee- company from alleged bogus shareholders, 5 M/s. Credential Equities Pvt. Ltd., whose names are given to the Assessing Officer, then the department is free to proceed to re-open their individual assessments in accordance with law. Hence, we find…