CIT v. Orissa Corporation Pvt. Ltd.

CIT vs. Expo Globe India Ltd

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.V.EASWAR

…even real beneficiary of share application money. The AO had all the powers under the law to call for the desired information directly from these persons as also held by Hon‟ble Supreme Court way back in the case of CIT vs. Orissa Corporation Pvt. Ltd. 159 ITR 78. Moreover, the position of the law is clear with the respect to share application money. It has been held by Hon‟ble Supreme Court and various High Courts that no addition can be made on account of share application money once the names of the share applicants are given. In the instant case, identity of these persons are not on doubt and…

CIT vs. Chipsoft Technology Pvt Ltd

The appeal is allowed in the

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.V.EASWAR

…it is due to him. When an assessee has obtained a benefit of deduction of a trading liability, it is for the assessee to establish whether such trading liability has been fully discharged or not. This court has laid down in CIT v. Agarpara Co. Ltd. [1986] 158 ITR 78, that if there be any excess over the requirement of the assessee in respect of liability claimed and allowed, such liability must be deemed to have ceased. It has also been laid down that it may be inferred from the surrounding circumstances that there has been a cessation or remission of the liability of the assessee. It has also been laid…

Azeem Investment Pvt Ltd

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

….e.f. assessment year 2013-2014 as per the Finance Bill which is pending for consideration before the Parliament. This proposed amendment is not retrospective. Lastly, he relies upon decisions of the Supreme Court in Anis Ahmad and Sons v. CIT(A) (2008) 297 ITR 441 (SC). 3. Having heard the counsel for the parties and considered the contentions raised, we do not think any substantial question arises for consideration. 4. In this case reassessment proceedings were initiated after information was received from Director of Investigation regarding bogus/accommodation entries allegedly provided by di…

Azeem Investment Pvt Ltd

….e.f. assessment year 2013-2014 as per the Finance Bill which is pending for consideration before the Parliament. This proposed amendment is not retrospective. Lastly, he relies upon decisions of the Supreme Court in Anis Ahmad and Sons v. CIT(A) (2008) 297 ITR 441 (SC). 3. Having heard the counsel for the parties and considered the contentions raised, we do not think any substantial question arises for consideration. 4. In this case reassessment proceedings were initiated after information was received from Director of Investigation regarding bogus/accommodation entries allegedly provided by di…

Azeem Investment Pvt Ltd

….e.f. assessment year 2013-2014 as per the Finance Bill which is pending for consideration before the Parliament. This proposed amendment is not retrospective. Lastly, he relies upon decisions of the Supreme Court in Anis Ahmad and Sons v. CIT(A) (2008) 297 ITR 441 (SC). 3. Having heard the counsel for the parties and considered the contentions raised, we do not think any substantial question arises for consideration. 4. In this case reassessment proceedings were initiated after information was received from Director of Investigation regarding bogus/accommodation entries allegedly provided by di…

Gupta Citi Shelters Ltd vs. Commissioner of Income Tax New Delhi

Appeals of the assessee are allowed

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…three shareholder companies had duly confirmed having put in share application money and also confirmed that they had filed income tax return for the Assessment Year 2008-09 as well. It was argued that the Apex Court in the case of Orissa Corporation [159 ITR 78] had held that since the assessee had given names and addresses of the creditors, all of whom were income tax assessees, the failure of the creditors to respond to Department's notices would not justify adverse inference being drawn against the assessee. 48. The assessee further submitted that the entire money had been received through acco…

Gupta Citi Shelters Ltd vs. Commissioner of Income Tax New Delhi

Appeals of the assessee are allowed

…three shareholder companies had duly confirmed having put in share application money and also confirmed that they had filed income tax return for the Assessment Year 2008-09 as well. It was argued that the Apex Court in the case of Orissa Corporation [159 ITR 78] had held that since the assessee had given names and addresses of the creditors, all of whom were income tax assessees, the failure of the creditors to respond to Department's notices would not justify adverse inference being drawn against the assessee. 48. The assessee further submitted that the entire money had been received through acco…

Commissioner of Income Tax vs. Industries (Pvt. Ltd.)

Appeal is dismissed in limine

…#7 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1542/2010 COMMISSIONER OF INCOME TAX ..... Appellant Through: Mrs. Sonia Mathur, Advocate versus M/S. NATRAJ ALBUM INDUSTRIES (PVT. LTD.) ..... Respondent Through: None % Date of Decision: 5th October, 2010 CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN 1. Whether the Reporters of local papers may be allowed to see the judgment? No. 2. To be referred to the Reporter or not? No. 3. Whether the judgment should be reported in the Diges…

CIT vs. Natraj Album Industries (Pvt.) Ltd

Appeal is dismissed in limine

…#7 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1542/2010 COMMISSIONER OF INCOME TAX ..... Appellant Through: Mrs. Sonia Mathur, Advocate versus M/S. NATRAJ ALBUM INDUSTRIES (PVT. LTD.) ..... Respondent Through: None % Date of Decision: 5th October, 2010 CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN 1. Whether the Reporters of local papers may be allowed to see the judgment? No. 2. To be referred to the Reporter or not? No. 3. Whether the judgment should be reported in the Diges…

Income Tax vs. Iris Computers Ltd

…iving notice to the concerned persons under section 131, Assessing Officer did not do anything and made this addition. We find support from the decision of the fact that the Hon’ble Apex Court decision in the case of CIT Vs. Orissa Corporation Pvt. Ltd. 159 ITR 78 wherein it was held that in case the creditor does not appear in response to summon issued under section 131, no adverse inference can be drawn. Further, we find that the assessee had already submitted the names and addresses and IT details of the share applicants and under these circumstances the decision of the Hon’ble Apex Court deliver…

Commissioner of Income Tax vs. Iris Computers Ltd

…iving notice to the concerned persons under section 131, Assessing Officer did not do anything and made this addition. We find support from the decision of the fact that the Hon’ble Apex Court decision in the case of CIT Vs. Orissa Corporation Pvt. Ltd. 159 ITR 78 wherein it was held that in case the creditor does not appear in response to summon issued under section 131, no adverse inference can be drawn. Further, we find that the assessee had already submitted the names and addresses and IT details of the share applicants and under these circumstances the decision of the Hon’ble Apex Court deliver…

CIT vs. Rice India Exports Ltd

The appeals are dismissed in limine

Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE MANMOHAN

…ssessee is bogus. Inability of the assessee to produce those suppliers cannot alone lead to the inference that these purchase are bogus. In this regard reference is made to Hon’ble Apex Court decision in the case of Anis Ahmad & Sons Vs. EIT reported in 297 ITR 441, wherein as per the fact of the case where AO issued summon to 10 traders and in response to the same 5 traders appeared and gave evidences in favour of the assessee. But the remaining 5 traders did not appear because they could not be serve with summons as they were residing outside State. The Hon’ble Apex Court held that AO’s action of…

CIT vs. Rice India Exports Pvt Ltd

The appeals are dismissed in limine

Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE MANMOHAN

…ssessee is bogus. Inability of the assessee to produce those suppliers cannot alone lead to the inference that these purchase are bogus. In this regard reference is made to Hon’ble Apex Court decision in the case of Anis Ahmad & Sons Vs. EIT reported in 297 ITR 441, wherein as per the fact of the case where AO issued summon to 10 traders and in response to the same 5 traders appeared and gave evidences in favour of the assessee. But the remaining 5 traders did not appear because they could not be serve with summons as they were residing outside State. The Hon’ble Apex Court held that AO’s action of…

Commissioner of Income Tax vs. Jaquar & Co Ltd

Accordingly the appeal, being devoid of merit, stands dismissed without any order as to costs

…und that bona fide explanation was given by the assessee for the rate of GP shown in the books of accounts as well as suppliers of the goods, which were not found by the department on subsequent enquiry. Learned AR also relied on various decisions reported at 297 ITR 441, 219 ITR 267, 288 ITR 487 and 276 ITR 351. In case of CIT Vs. 2010:DHC:11480 Raj Bans Singh – 276 ITR 351, Hon'ble Allahabad High led that estimation of income at a higher figure does not warrant any penal action u/s 271(1)(c). In the instant case, addition on account of gross profit on estimation basis has been retained keeping into view some…

Commissioner of Income Tax, Delhi-II vs. Kishori Lal Construction Ltd

Appeals are disposed of in the aforesaid terms

…venue to establish that the transaction in question was bogus. This would be so even if there is a denial by the creditors that the credits were not genuine as held by the Supreme Court in Commissioner of Income Tax, Orissa vs. Orissa Corporation (P) Ltd, 159 ITR 78. Mere denial by Yadavs that account in question was not operated by them would not automatically lead to the inference that assessee deposited in the said account and, therefore, it became its unaccounted income. The CIT (A) as well as the ITAT have rightly pointed out that the necessary exercise which was to be undertaken by the Assessing O…

Commissioner of Income T Ax Delhi II vs. Kishori Lal Construction Ltd

Appeals are disposed of in the aforesaid terms

…venue to establish that the transaction in question was bogus. This would be so even if there is a denial by the creditors that the credits were not genuine as held by the Supreme Court in Commissioner of Income Tax, Orissa vs. Orissa Corporation (P) Ltd, 159 ITR 78. Mere denial by Yadavs that account in question was not operated by them would not automatically lead to the inference that assessee deposited in the said account and, therefore, it became its unaccounted income. The CIT (A) as well as the ITAT have rightly pointed out that the necessary exercise which was to be undertaken by the Assessing O…