What is CIT v. Stellar Investment Ltd. authority for?

Once the identity of the shareholders is established, no addition can be made in the hands of the assessee company under Section 68 for share capital or share application money, as it cannot be treated as undisclosed income.

How many judgments cite CIT v. Stellar Investment Ltd.?

146 judgments on BharatTax cite CIT v. Stellar Investment Ltd. (192 ITR 287), spanning 2008 to 2026.

Which sections of the Income Tax Act does CIT v. Stellar Investment Ltd. come up under?

It is most often cited in judgments turning on Section 1961, Section 68, Section 143(3), Section 68 of the Income Tax Act, Section 142(1), Section 139(1).

CIT v. Stellar Investment Ltd. (192 ITR 287)

ACIT, Circle- 14(1)(1), Mumbai vs. M/S. Akshay Infrastructure Pvt. Ltd., Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 2923/MUM/2022[2013-14]Status: DisposedITAT Mumbai04 Sept 2023AY 2013-14

Bench: Shri Br Baskaran & Shir Pavan Kumar Gadaleacit, Circle – 14(1)(1) Vs. M/S.Akshayinfrastructure Room No. 432, Pvt Ltd.102, 4Th Floor, Siddhivinayak Chsl, Aayakar Bhavan, Tilak Nagar, M.K. Road, Chembur, Mumbai- 400020. Mumbai-400089 Pan/Gir No. : Aahca2331A Appellant .. Respondent Assessee By : Mr.Ajaysingh&Yogeshjoijode.Ar Revenue By : Mr.Manoj Kumar.Dr Date Of Hearing 03.07.2023 Date Of Pronouncement 04.09.2023 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Revenue Has Filed The Appeal Against The Order Of The National Faceless Appeal Centre (Nfac), Delhi /Cit(A) Mumbai Passed U/Sec 250 Of The Act. The Revenue Has Raised The Fallowing Grounds Of Appeal. 1."On The Facts & In The Circumstances Of The Case, The Ld. Cit(A) Erred In Deleting The Addition Made By The A.O. Of Rs2,03,00,000/- On Account Of Disallowance U/S 68 Of The Income Tax Act Merely Relying On The Submissions Made By The A.R. Of The Assessee & On The Basis Of

For Appellant: Mr.AjaySingh&YogeshJoijode.ARFor Respondent: Mr.Manoj Kumar.DR

Section 143(2)Section 143(3)Section 68

…that the entire transaction was done through account payee cheques and regular banking channels which has not been disputed or denied in any manner. The Hon'ble Delhi High Court in the case of Commissioner of Income Tax vs Steller Investments Limited [(1991) 192 ITR 287 (Delhi)], has upheld that any increased capital is not assessable in the hands of the company. The observations of the TheHon'ble Delhi High Court are as follows: - "It is evident that even if it be assumed that the subscribers to the increased share capital were not genuine, nevertheless, under no circumstances, can the amount of share capital…

Maruti Tradexim Pvt. Ltd., New Delhi vs. ITO, Ward- 16(2), New Delhi

ITA 3615/DEL/2018[2012-13]Status: DisposedITAT Delhi26 Apr 2023AY 2012-13

Bench: Shri Shamim Yahya & Ms. Astha Chandraasstt. Year: 2012-13

For Appellant: NoneFor Respondent: Shri Anil Kumar Sharma, Sr. DR

Section 131Section 143(3)Section 68

…ed the veil from the artful design of the transactions. In none of the case laws relied on by the Ld. AR for the Appellant the courts have supported deceitful transactions. 8.18 The earlier view of Hon'ble Delhi High Court in the cases Stellar Investment Ltd. 192 ITR 287 and Lovely Exports Pvt. Ltd., 299 IT1R 268 was that share capital cannot be added in the hands of the assessee company once the assessee furnishes PAN, addresses of the creditor/subscriber with copies of the shareholders register, share application forms, transfer register, etc. This would constitute sufficient explanation 1 assessee. The Hon'ble…

M/S Combined Merchants Pvt. Ltd., Kolkata vs. ITO, Ward-12(2), Kolkata

In the result, the appeal filed by the assessee is allowed

ITA 548/KOL/2020[2012-13]Status: DisposedITAT Kolkata04 Aug 2022AY 2012-13

Bench: Sri Rajpal Yadav & Sri Manish Borad

Section 143(2)Section 144Section 250Section 68

…8 and CIT vs. Lovely Exports Pvt. Ltd. [2008] CTR 195 (SC). Further, reliance also placed on the judgement of Hon’ble Delhi High Court in the case of CIT vs. Value Capital Services Pvt. Ltd. (2009) 221 CTR 0511 (Del) and CIT vs. Steller Investment Ltd. (1991) 192 ITR 287 (Del). 6. Per contra ld. D/R vehemently argued supporting the orders of both the lower authorities. 7. We have heard rival contentions and perused the records placed before us and carefully gone through the decisions referred by the Ld. Counsel for the assessee. The assessee has raised six Page 4 of 9 I.T.A. No.: 548/Kol/2020 Assessment Year: 2…

DCIT, Circle- 8, Rewari vs. Shree Balaji Grit & Rolling Pvt. Ltd., Rewari

In the result, the appeal of the Department is allowed for statistical

ITA 3807/DEL/2017[2013-14]Status: DisposedITAT Delhi10 May 2022AY 2013-14

Bench: Shri Anil Chaturvedi & Shri Yogesh Kumar U.S.Assessment Year: 2013-14

Section 143(1)Section 143(2)Section 250(6)Section 36(1)(iii)Section 68

…and nor even mentioned regarding the full exercise and investigation done by the Assessing Officer and the findings made thereon. The CIT (A) has not even 6 discussed how the judgment of Hon’ble Supreme Court in the case of CIT Vs. Stellar Investment Ltd. 192 ITR 287 and the judgment of Delhi High Court in the case of Sophia Investment Ltd. 205 ITR 98 are applicable to the facts and circumstances of the case apart from mentioning the same in his order. 7. Therefore, in our considered opinion, if the matter is restored to the file of CIT (Appeals) for fresh adjudication after verifying the materials on recor…

M/S. Vpa Civilcon (P) Ltd., Indore vs. Pr. CIT-2, Indore

In the result, the appeal of the assessee is allowed

ITA 864/IND/2019[2015-16]Status: DisposedITAT Indore30 Mar 2022AY 2015-16

Bench: Shri Manish Borad & T.R. Senthil Kumar

For Appellant: Shri C.P. Rawka and Shri Venus Rawka, CAsFor Respondent: Shri P.K. Mitra, CIT-DR

Section 143(2)Section 263Section 263(1)

…doubt in the transaction. Similar view has been taken by Honourable Delhi High Court in the case of CIT vs. Mrs Sunita Bachani (184 ITR 121, 123). Reference is further invited to Honourable Delhi High Court Decision in case of CIT vs. Stellar Investments Ltd (192 ITR 287, 288). In view of the forgoing paras and taking into account the nature of transaction, your honor may appreciate that there is no case for revision as the credit entry is on account of balance amount payable.” 3. However, ld.Pr.CIT is not satisfied with the reply filed by the assessee, and set aside the assessment order dated 28.6.2017 to the…

Sejal Jewellers Pvt. Ltd., Surat vs. The Income Tax Officer, Ward-2(1)(2), Surat

In the result, appeal of the assessee is allowed

ITA 435/AHD/2017[2012-13]Status: DisposedITAT Surat28 Feb 2022AY 2012-13

Bench: Shripawan Singh, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.435/Ahd/2017 (िनधा"रणवष" / Assessment Year: (2012-13) (Virtual Court Hearing) Sejal Jewellers Pvt. Ltd, Income Tax Officer, Ward-2(1)(2), V Ug-4/5 Rangila Park, Ghod Dod Surat, Aaykar Bhavan, Majura Gate, S. Road, Surat-395007 Surat "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaqcs 8686 P (Appellant ) (Respondent)

For Appellant: Shri Rasesh Shah, CAFor Respondent: Shri H.P. Meena– CIT-DR

Section 131Section 131(1)(d)Section 133(6)Section 143(3)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRIPAWAN SINGH, JM &DR. A.L.SAINI, AM आयकरअपीलसं./ITA No.435/AHD/2017 (िनधा"रणवष" / Assessment Year: (2012-13) (Virtual Court Hearing) Sejal Jewellers Pvt. Ltd, Income Tax Officer, Ward-2(1)(2), V UG-4/5 Rangila Park, Ghod Dod Surat, Aaykar Bhavan, Majura Gate, s. Road, Surat-395007 Surat "थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAQCS 8686 P (Appellant ) (Respondent) Assessee by :Shri Rasesh Shah, CA Respondent by :Shri H.P. Meena– CIT-DR सुनवाईकीतारीख/ Date of Hearing : 21/01/2022 घोषणाकीतारीख/Date of Pronouncement : 28/02/2022 आदेश / O R D E R PER DR…

ACIT, Central Circle-15, New Delhi vs. Luxman Builders Pvt. Ltd., New Delhi

In the result, the CO filed by the assessee is allowed and the appeal filed by the Revenue is dismissed

ITA 817/DEL/2018[2010-11]Status: DisposedITAT Delhi14 Dec 2021AY 2010-11

Bench: Shri R.K. Panda & Shri Kul Bharatassessment Year: 2010-11 Acit, Vs Lumax Builders Pvt. Ltd., Central Circle-15, 25, Bazar Lane, New Delhi. Bengali Market, New Delhi. Pan: Aaacl2184R Co No.93/Del/2018 (Ita No.817/Del/2018) Assessment Year: 2010-11 Lumax Builders Pvt. Ltd., Vs. Acit, 25, Bazar Lane, Central Circle-15, Bengali Market, New Delhi New Delhi. Pan: Aaacl2184R (Appellant) (Respondent) Assessee By : Shri Gautam Jain, Advocate & Shri Lalit Mohan, Advocate Revenue By : Ms Paramita M. Biswas, Cit, Dr Date Of Hearing : 16.09.2021 Date Of Pronouncement : 14.12.2021 Order Per R.K. Panda, Am: This Appeal Filed By The Revenue Is Directed Against The Order Dated 3Rd November, 2017 Of The Cit(A)-26, New Delhi, Relating To Assessment Year 2010- 11. Co No.93/Del/2018 2. The Assessee Has Filed The Co Against The Appeal Filed By The Revenue. For The Sake Of Convenience, These Were Heard Together & Are Being Disposed Of By This Common Order.

For Appellant: Shri Gautam Jain, Advocate &For Respondent: Ms Paramita M. Biswas, CIT, DR

Section 132Section 132(4)Section 153A

…ipuan Auto (P) Ltd. {[2014] 49 taxmann.com 13 (Del.) 361 ITR 155 (Del.), Commissioner of Income- Tax vs Winstral Petrochemicals p. Ltd. 201 1 330 ITR 603 (Del.), CIT v. Divine Leasing and Finance Ltd. [2008] 299 ITR 268 (Delhi), CIT v. Stellar Investments Ltd 192 ITR 287 (Del.) & CIT v. Stellar Investment Ltd 2001 251 ITR 263 (SC) and contented that the appellant duly discharged the initial burden to establish the identity, creditworthiness and genuineness by submitting necessary documentary evidences in respect of the shares application money. Reliance is also placed on the judgments in CIT v. Lovely Exports Pvt…

ACIT, Central Circle- 15, New Delhi vs. Hal Offshore Ltd., New Delhi

In the result, we hold that addition of share capital in the year under consideration has been made without relying on any incriminating material found during the course of search

ITA 6956/DEL/2018[2015-16]Status: DisposedITAT Delhi14 Dec 2021AY 2015-16

Bench: Shri R.K. Panda & Shri Kul Bharatassessment Year: 2015-16 Acit, Vs Hal Offshore Ltd., Central Circle-15, 25, Bazar Lane, New Delhi. Bengali Market, New Delhi. (Appellant) (Respondent) Assessee By : Shri Gautam Jain, Advocate & Shri Lalit Mohan, Ca Revenue By : Ms Paramita M. Biswas, Cit, Dr Date Of Hearing : 16.09.2021 Date Of Pronouncement : 14.12.2021 Order Per R.K. Panda, Am: This Appeal Filed By The Revenue Is Directed Against The Order Dated 2Nd August, 2018 Of The Cit(A)-26, New Delhi, Relating To Assessment Year 2015-16. 2. Facts Of The Case, In Brief, Are That The Assessee Is One Of The Group Companies Of Mmg Group & Has Business Interest In Several Segments Like Chartering & Leasing Of Vessels To Ongc & Shipping, Etc. In This Case, A Search & Seizure Operation U/S 132 Of The It Act, 1961 Was Carried Out On 28Th March, 2015. During The Course Of Search, Documents & Data Storage Devices, Etc., Belonging To The Assessee Were Found & Seized. The Assessee Filed Its Return Of Income On 29Th July, 2016 For The Assessment Year 2015-16 Declaring The Total Income At Rs.12,15,49,580/-. Notice U/S 143(2) Was Issued On 20Th May, 2016 Which Was Duly Served On The Assessee. Subsequently, Notice U/S 142(1) Along With A Questionnaire Was Issued To The Assessee Calling For Certain Information. The Assessee Complied To The Said Questionnaire By Filing The Requisite Details.

For Appellant: Shri Gautam Jain, Advocate &For Respondent: Ms Paramita M. Biswas, CIT, DR

Section 132Section 132(4)Section 142(1)Section 143(2)

…Nipuan Auto (P) Ltd. {[2014] 49 taxmann.com 13 (Del.) 361 ITR 155 (Del.)}, Commissioner of Income-Tax vs Winstral Petrochemicals p. Ltd. 2011 330 ITR 603 (Del.), CIT v. Divine Leasing and Finance Ltd. [2008] 299 ITR 268 (Delhi), CIT v. Stellar Investments Ltd 192 ITR 287 (Del.) & CIT v. Stellar Investment Ltd 2001 251 ITR 263 (SC) and contented that the appellant duly discharged the initial burden to establish the identity, creditworthiness and genuineness by submitting necessary documentary evidences in respect of the shares application money. Reliance is also placed on the judgments in CIT v. Lovely Exports Pvt…

ACIT, Central Circle- 15, New Delhi vs. Moon Beverages Ltd., New Delhi

In the result, we hold that addition of share capital in the year under consideration has been made without relying on any incriminating material found during the course of search

ITA 6955/DEL/2018[2014-15]Status: DisposedITAT Delhi14 Dec 2021AY 2014-15

Bench: Shri R.K. Panda & Shri Kul Bharatassessment Year: 2014-15 Acit, Vs Moon Beverages Ltd., Central Circle-15, 25, Bazar Lane, New Delhi. Bengali Market, New Delhi. Pan: Aaacm1635J Co No.06/Del/2019 (Ita No.6955/Del/2018) Assessment Year: 2014-15 Moon Beverages Ltd., Vs. Acit, 25, Bazar Lane, Central Circle-15, Bengali Market, New Delhi New Delhi. Pan: Aaacm1635J (Appellant) (Respondent) Assessee By : Shri Gautam Jain, Advocate & Shri Lalit Mohan, Ca Revenue By : Ms Paramita M. Biswas, Cit-Dr Date Of Hearing : 16.09.2021 Date Of Pronouncement : 14.12.2021 Order Per R.K. Panda, Am: This Appeal Filed By The Revenue Is Directed Against The Order Dated 2Nd August, 2018 Of The Cit(A)-26, New Delhi, Relating To Assessment Year 2014-15. Co No.06/Del/2019 The Assessee Has Filed Co Against The Appeal Filed By The Revenue. For The Sake Of Convenience, These Were Heard & Are Being Disposed Of By This Common Order.

For Appellant: Shri Gautam Jain, Advocate &For Respondent: Ms Paramita M. Biswas, CIT-DR

Section 132Section 153A

…Nipuan Auto (P) Ltd. {[2014] 49 taxmann.com 13 (Del.) 361 ITR 155 (Del.)}, Commissioner of Income-Tax vs Winstral Petrochemicals p. Ltd. 2011 330 ITR 603 (Del.), CIT v. Divine Leasing and Finance Ltd. [2008] 299 ITR 268 (Delhi), CIT v. Stellar Investments Ltd 192 ITR 287 (Del.) & CIT v. Stellar Investment Ltd 2001 251 ITR 263 (SC) and contented that the appellant duly discharged the initial burden to establish the identity, creditworthiness and genuineness by submitting necessary documentary evidences in respect of the shares application money. Reliance is also placed on the judgments in CIT v. Lovely Exports Pvt…

DCIT, New Delhi vs. M/S. Jaguar Buildcon Pvt. Ltd., New Delhi

In the result, both the appeals of the Revenue are dismissed

ITA 284/DEL/2015[2012-13]Status: DisposedITAT Delhi31 Aug 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Ms. Sunita Singh, CIT-DRFor Respondent: Shri Rakesh Joshi, CA

Section 127Section 132Section 133(6)Section 139(1)Section 143(1)Section 153ASection 68

…y at his level. So, there was no case for making the addition. CIT v. Steller Investment Ltd. [2001] 251 ITR 263/1 1 5 Taxman 99(SC) In this case, Hon’ble Supreme Court affirmed the view of Delhi High Court in the case of CIT v. Steller Investment Ltd. [1991] 192 ITR 287/59 Taxman 568, that reads as under: "It is evident that even if it be assumed that the subscribers to the increased share capital were not genuine, nevertheless, under no circumstances, can the amount of share capital be regarded as undisclosed income of the assessee. It may be that there are some bogus shareholders in whose names shares had been…

DCIT, New Delhi vs. M/S. Jaguar Buildcon Pvt. Ltd., New Delhi

In the result, both the appeals of the Revenue are dismissed

ITA 283/DEL/2015[2011-12]Status: DisposedITAT Delhi31 Aug 2021AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Ms. Sunita Singh, CIT-DRFor Respondent: Shri Rakesh Joshi, CA

Section 127Section 132Section 133(6)Section 139(1)Section 143(1)Section 153ASection 68

…y at his level. So, there was no case for making the addition. CIT v. Steller Investment Ltd. [2001] 251 ITR 263/1 1 5 Taxman 99(SC) In this case, Hon’ble Supreme Court affirmed the view of Delhi High Court in the case of CIT v. Steller Investment Ltd. [1991] 192 ITR 287/59 Taxman 568, that reads as under: "It is evident that even if it be assumed that the subscribers to the increased share capital were not genuine, nevertheless, under no circumstances, can the amount of share capital be regarded as undisclosed income of the assessee. It may be that there are some bogus shareholders in whose names shares had been…

DCIT-13(2)(2), Mumbai vs. M/S.Shubham Motiwala & Jewellers Private Limited, Mumbai

The appeal of the revenue is dismissed

ITA 468/MUM/2019[2010-11]Status: DisposedITAT Mumbai30 Jul 2021AY 2010-11

Bench: Shri Rajesh Kumar () & Shri Ravish Sood () Dy. Commissioner Of Income M/S Shubham Motiwala & Tax -13(2)(2), Vs. Jewellers Pvt. Ltd. Room No. 146, 1St Floor, Shop No. 5, Unity Heights, Aayakar Bhavan, M.K Road, Chincholi Jn,S.V. Road, Mumbai – 400020 Malad, Mumbai – 400064

For Appellant: Shri Mani Jain, A.RFor Respondent: Shri T.S. Khalsa, D.R

Section 143(1)Section 143(3)Section 147Section 148Section 68

…. (i) CIT Vs. Lovely Exports (P) Ltd. (2008) 216 CTR 195 (SC); (ii) CIT Vs. Creative World Telefilms Ltd. (2011) 333 ITR 100 (Bom); (iii) CIT Vs. Gagandeep Infrastructure Pvt. Ltd. (2017) 394 ITR 680 (Bom); and (iv) CIT Vs. Steller Investments Limited. (1991) 192 ITR 287 (Del), therein observed, that the „first proviso‟ to Sec. 68 of the Act, which as a pre-condition for discharge of onus by an assessee company as regards the „nature‟ and „source‟ of a sum consisting of share application money, share capital, share premium or any such amount by whatever name called recorded in its books of accounts, therein requi…

ITO, New Delhi vs. M/S. Arizona Venutres Pvt. Ltd., New Delhi

In the result, both the appeals of the Revenue are dismissed

ITA 1428/DEL/2016[2012-13]Status: DisposedITAT Delhi26 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Satpal Gulati, CIT-DRFor Respondent: Shri Rakesh Joshi, CA

Section 139(1)Section 143(1)Section 143(2)Section 143(3)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.As. No.1428/DEL/2016 Assessment Year 2012-13 ITO, Ward-3(2), v. M/s. Arizona Ventures Pvt. New Delhi. Ltd., Flat No.211, 2nd Floor, Hemkunt Chamber, 89, Nehru Place, New Delhi. TAN/PAN: AADCD6391B (Appellant) (Respondent) Assessment Year 2012-13 ITO, Ward-3(2), v. M/s. Arizona Global Services New Delhi. Pvt. Ltd., Flat No.211, 2nd Floor, Hemkunt Chamber, 89, Nehru Place, New Delhi. TAN/PAN: AADCD7117M (Appellant) (Respondent) Appellant by: Shri Satpal Gulati…

M/S Hinal Estate Pvt Ltd., Mumbai vs. Pr CIT 10, Mumbai

ITA 7938/MUM/2019[2009-10]Status: DisposedITAT Mumbai08 Mar 2021AY 2009-10

Bench: Shri S.Rifaur Rahman () & Shri Ravish Sood () Ita No.7938 /Mum/2019 (Assessment Year: 2009-10) M/S Hinal Estate Private Ltd. Principal Commissioner Of A-1 Hinal Estate, Patel Wadi, Vs. Income Tax-10, Room No. 416, 4Th Floor, S.V. Road, Borivali West, Mumbai – 400 057 Aaykar Bhavan, M.K. Road, Mumbai- 400 020 Pan No. Aabch6287J (Assessee) (Revenue) Assessee By : Shri. Naresh Jain, A.R Revenue By : Shri Sandeep Raj, D.R Date Of Hearing : 08/02/2021 Date Of Pronouncement: 08/03/2021

For Appellant: Shri. Naresh Jain, A.RFor Respondent: Shri Sandeep Raj, D.R

Section 143(1)Section 143(3)Section 147Section 263Section 68

…e same was required to be looked into only in the hands of the subscriber of the share capital. In support of his aforesaid contention the ld. A.R relied on the judgment of the Hon‟ble High Court of Delhi in the case of CIT Vs. Stellar Investments Ltd. (1991) 192 ITR 287 (Del). It was submitted by the ld. A.R that the aforesaid order of the Hon‟ble High Court of Delhi had thereafter been upheld by the Hon‟ble Supreme Court in CIT Vs. Stellar Investments Limited (2001) 251 ITR 263 (SC), wherein the “Special Leave Petition”(for short “SLP”) filed by the revenue was dismissed. Also, reliance was drawn by the A.R on…

ACIT, Central Circle-15, New Delhi vs. Sunstar Infra Developers Pvt. Ltd., New Delhi

In the result, all the Cross Objections filed by the assessees are allowed and all the appeals filed by the Revenue are dismissed

ITA 816/DEL/2018[2012-13]Status: DisposedITAT Delhi27 Nov 2020AY 2012-13