Commissioner of Income Tax v. Nova Promoters and Finlease (P) Ltd.

Sh. Manju Agarwal, New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2004-05 Ms. Manju Agarwal, 14B/23, Vs. Income Tax Officer, Ward- 1St Floor, Dev Nagar, Karol 33(1), New Delhi Bagh, New Delhi Pan : Adrpa7112P (Appellant) (Respondent) Appellant By Sh. Deepak Ostwal, Ca Respondent By Sh. Surender Pal, Sr. Dr Date Of Hearing 20.07.2016 Date Of Pronouncement 28.09.2016 Order Per O.P. Kant, A.M.: This Appeal By The Assessee Is Directed Against Order Dated 02/01/2014 Of Learned Commissioner Of Income-Tax (Appeals)-Xxviii, New Delhi For Assessment Year 2004-05 Raising Following Grounds: I. On Facts & In Circumstances Of The Case, Cit (A) Has Erred Both On Facts & In Law, In Upholding Illegal Action Of Re-Assessment & Assumption Of Jurisdiction By The Respondent Without Issue/Service Of Notice U/S 148 & Without Recording The Reasons For Reopening The Assessment. Therefore, Impugned Assessment Order Is Liable To Be Quashed As Unsustainable, Both On Facts & In Law.

…R 202, judgment of the Hon’ble Supreme Court in the case of Commissioner of Income Tax Vs. P. Mohanakala 291 ITR 278 and judgment of Hon’ble Delhi High Court in the case of Commissioner of Income Tax Vs. M/s. Nova Promoters and Finlease Private Limited (2012) 342 ITR 169 held that the assessee failed to discharge the burden of proof to explain the creditworthiness of the creditor and, therefore, he confirmed the addition of Rs. 5 lakhs and addition of Rs. 18,000/- towards commission charges. 9 AY: 2004-05 Aggrieved, the assessee is in appeal before the Tribunal raising the grounds as reproduced above. 3. Before…

ITO, New Delhi vs. M/S. Goldy Traders Pvt. Ltd., New Delhi

Bench: : Shri H.S. Sidhu & Shri L.P. Sahu

…6 ITA No.3136/Del./2013 (iii). CIT vs. M/s. Rakam Money Matters Pvt. Ltd. (ITA No. 778 of 2015 dated 13.10.15) (Delhi H.C.) (iv). CIT vs. Vrindavan farms (P) Ltd. (ITA No. 71, 72, 85/D/2015 dated 12.08.15) (v). CIT vs. Nova Promotors and Finlease P. Ltd., 342 ITR 169 (Del.) It was also submitted that the notice u/s. 148 was issued on 25.03.2011, but the reasons recorded for reopening the case were communicated only on 19.08.2011, which is beyond the statutory period of limitation as contemplated u/s. 149 of the Act. The AO has wrongly rejected the objection of assessee relying on the decision of Hon’ble Ap…

M/S. Raj Hans Towrs Pvt. Ltd., New Delhi vs. DCIT, New Delhi

The appeal of the assessee is allowed for statistical purpose

Bench: Smt. Diva Singh & Sh. O.P. Kantassessment Year: 2009-10 M/S. Raj Hans Towers Pvt. Vs. Deputy Commissioner Of Ltd., M-33, 2Nd Floor, Income Tax, Circle -15(1), Greater Kailash-I, New Delhi New Delhi Gir/Pan :Aaacr0019H (Appellant) (Respondent) Appellant By Sh. R.S. Singhvi, Ca Respondent By Sh. V.P. Mishra, Sr.Dr Date Of Hearing 06.06.2016 Date Of Pronouncement 20.07.2016 Order

…, judgment of the Hon’ble Supreme Court in the case of Commissioner of Income Tax Vs. P. Mohanakala, 291 ITR 278 and the judgment of the Hon’ble Delhi High Court in the case of Commissioner of Income Tax Vs. Nova Promoters and Finlease Private Limited, (2012) 342 ITR 169, confirmed the additions with following observations: “The appellant has thus been unable to explain the identity, genuineness and creditworthiness of the person who has allegedly given the amounts. As the explanation offered by the assessed about the nature and source of the sums found credited in the | books was not satisfactory there was, prim…

DCIT, New Delhi vs. M/S. Gomati Consultants Pvt. Ltd, New Delhi

In the result the appeal of the revenue is dismissed

Bench: I.C.Sudhir & Shri Prashant Maharishidcit, Gomati Consultants Pvt. Ltd, 333, 2Nd Floor, Sant Nagar, Central Circle-11, Vs. New Delhi East Of Kailash, New Delhi Pan:Aaccg3616M (Appellant) (Respondent)

…lhi High Court in case of CIT Vs. Vrindavan Farms ITA No. 71/2015 dated 12.08.2015 has held as under:- “3. Ms. Suruchi Aggarwal, learned Senior Standing counsel for the Appellant, relied upon the decision of this Court in CIT v. Nova Promoters & Finlease Ltd. 342 ITR 169 and urged that the Assessing Officer (AO) was not required to “point to the source from which the money was received by the Assessee”. On the other hand, it was incumbent upon the Assessee to offer a satisfactory explanation regarding nature and source of the funds. 4. The ITAT has in the impugned order noticed that in the present case the Revenu…

M/S. U.S. Food (P) Ltd., Uttar Pradesh vs. Addl. CIT, Moradabad

In the result, the appeal of the assessee is allowed for statistical purposes

Bench: : Shri C.M. Garg & Shri L.P. Sahu

…). The ld. CIT(A) confirmed the addition after distinguishing the decision relied on by the assessee in the case of Lovely Exports (216 CTR 195)(SC) and relying upon the decision of Hon’ble Delhi High Court in the case of Nova Promoters and Finlease (P) Ltd., 342 ITR 169 (Del.). The ld. CIT(A) also observed that the said share applicants are persons with no history of paying taxes. They have no PAN and 3 ITA No.3266/Del./2013 apparently, the onus cast on the assessee company to prove the flow of funds was not discharged. He also observed that the appellant-company is not a widely held company which could have in…

M/S. Narendra Polychem (P) Ltd., New Delhi vs. ITO, New Delhi

In the result, appeal of the assessee is allowed

Bench: Sh. N. K. Saini, Am & Smt. Beena Pillai, Jm Ita No. 6087/Del/2013 : Asstt. Year : 2003-04 M/S Narendra Polychem (P) Ltd., Vs Income Tax Officer, Formerly Known As M/S Narendra Ward-13(1), Cold Storage (P) Ltd., 107, New Delhi Patparganj Village, Delhi-110091 (Appellant) (Respondent) Pan No. Aabcn8105D Assessee By : Dr. Rakesh Gupta & Sh. Somil Agarwal, Advs. Revenue By : Sh. P. Dam Kanunjna, Sr. Dr Date Of Hearing : 31.05.2016 Date Of Pronouncement : 03.06.2016 Order Per N. K. Saini, Am:

…ired for conclusively proving the escapement of income is not concerned at the stage of reopening. Hon'ble Delhi High Court in the case of A.G. Holdings (P) Ltd. vs. ITO in W.P. (C) 8031/2011 and in the case of CIT vs. Nova Promoters & Finlease (P) Ltd (2012) 18 Taxmann.com 217 (Delhi) has held that at the time of issuing the notice to reopen the assessment, the Assessing Officer is only expected to form a prima facie or tentative belief that income chargeable to tax had escaped assessment. Whether the addition has to be made or not is a matter to be decided on merits in the course of the reassessment proceeding.…

Manu Credit India Ltd., New Delhi vs. ITO, New Delhi

The appeal is allowed

Bench: Shri G. D. Agrawal & Smt Suchitra Kamblei.T.A .No. 2242/Del/2013 (Assessment Year-2003-04) Manu Credit India Ltd. Vs Ito Ward-6 (2) 278, Katra Peran New Delhi Tilak Bazar (Respondent) New Delhi Aaacm6920A (Appellant)

…on High Court in case of CIT Vs. G&G Pharma (ITA No.545/2015 dated 08.10.2015). 7. The Ld. DR submitted that the Assessing Officer as well as CIT (A) has passed proper and just orders. The Ld. DR relied upon the judgment of Nova Promoters & Finlease (P) Ltd. 342 ITR 169 (DEL). 8. We have perused all the records and heard both the parties. The Assessing Officer has not given any satisfaction or reason while arriving at the initiation of the re-assessment u/s 147. A perusal of the reasons mentioned hereinabove clearly suggest that there is no application of mind. On careful consideration of rival submissions of b…

M/S. Neelkanth Organics Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed partly for statistical purpose

Bench: Smt. Diva Singh & Sh. O.P. Kantassessment Year: 2004-05 M/S. Neelkanth Organics Pvt. Ltd., Vs. Income Tax Officer, Ward -13(2), A-38/E, Dda Flats, Munirka, New New Delhi Delhi. (Pan : Aaacn0339G) (Appellant) (Respondent)

…ired for conclusively proving the escapement of income is not concerned at the stage of reopening. Hon'ble Delhi High Court in the case of A.G. Holdings (P) Ltd. vs. ITO in W.P. (C) 8031/2011 and in the case of CIT vs. Nova Promoters & Finlease (P) Ltd (2012) 18 Taxmann.com 217 (Delhi) has held that at the time of issuing the notice to reopen the assessment, the Assessing Officer is only expected to form a prima facie or tentative belief that income chargeable to tax had escaped assessment. Whether the addition has to be made or not is a matter to be decided on merits in the course of the reassessment proceeding.…

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

In the result, the appeals of the Revenue for the all the years are dismissed and the appeal of the assessee for assessment year 2004-05

Bench: Shri Before Shri G.D. Agrawalbefore Shri Before Shri G.D. Agrawalg.D. Agrawal & G.D. Agrawal & And & Shri Shri Chandra Mohan Garg Shri Shri Chandra Mohan Garg Chandra Mohan Gargchandra Mohan Garg

…assessee did not discharge the onus which lay upon it to prove the credit in the form of share capital. In support of his contention, he relied upon the decision of Hon'ble Delhi High Court in the case of CIT Vs. Nova Promoters and Finlease (P) Ltd. – [2012] 342 ITR 169 (Delhi). He, therefore, submitted that the order of learned CIT(A) on this point may be reversed and that of the Assessing Officer may be restored. 9. Learned counsel for the assessee stated that no incriminating material relating to share application money was found during the course of search and, therefore, the addition with regard to unexpla…

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

In the result, the appeals of the Revenue for the all the years are dismissed and the appeal of the assessee for assessment year 2004-05

Bench: Shri Before Shri G.D. Agrawalbefore Shri Before Shri G.D. Agrawalg.D. Agrawal & G.D. Agrawal & And & Shri Shri Chandra Mohan Garg Shri Shri Chandra Mohan Garg Chandra Mohan Gargchandra Mohan Garg

…assessee did not discharge the onus which lay upon it to prove the credit in the form of share capital. In support of his contention, he relied upon the decision of Hon'ble Delhi High Court in the case of CIT Vs. Nova Promoters and Finlease (P) Ltd. – [2012] 342 ITR 169 (Delhi). He, therefore, submitted that the order of learned CIT(A) on this point may be reversed and that of the Assessing Officer may be restored. 9. Learned counsel for the assessee stated that no incriminating material relating to share application money was found during the course of search and, therefore, the addition with regard to unexpla…

Suncity Projects Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the Revenue for the all the years are dismissed and the appeal of the assessee for assessment year 2004-05

Bench: Shri Before Shri G.D. Agrawalbefore Shri Before Shri G.D. Agrawalg.D. Agrawal & G.D. Agrawal & And & Shri Shri Chandra Mohan Garg Shri Shri Chandra Mohan Garg Chandra Mohan Gargchandra Mohan Garg

…assessee did not discharge the onus which lay upon it to prove the credit in the form of share capital. In support of his contention, he relied upon the decision of Hon'ble Delhi High Court in the case of CIT Vs. Nova Promoters and Finlease (P) Ltd. – [2012] 342 ITR 169 (Delhi). He, therefore, submitted that the order of learned CIT(A) on this point may be reversed and that of the Assessing Officer may be restored. 9. Learned counsel for the assessee stated that no incriminating material relating to share application money was found during the course of search and, therefore, the addition with regard to unexpla…

M.G. Capital Services Ltd., New Delhi vs. DCIT, New Delhi

In the result appeal of the assessee is allowed on legal ground

Bench: Sh. C.M. Garg, J.M & L.P. Sahu,Am Asstt. Year: 2000-01 M.G. Capital Services Ltd. Vs Dcit Raj Kumar & Associates, Ca Circle-6(1) 4435/7, Ansari Road, Darya New Delhi Gang New Delhi-110002 Appellant Respondent Pan No. Aaacm6670R

…ts of the present case and the same has wrongly been relied by the Ld AR to support the challenge of reopening of assessment. The Ld DR further pointed out that the preposition laid down by Hon’ble High Court of Delhi in the case of Nova Promoters reported as 342 ITR 169 (Delhi) is applicable to the present case wherein it has been held that the reopening of the assessment U/s 147 of the Act and issuance of notice U/s 148 of the Act on the basis of information from investigation wing is sustainable and valid. The Ld AR also pointed out that the information received by the ITO from the investigation wing of the de…

M/S. M.G. Portfolio Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed on legal grounds in the manner as indicated above

Bench: Shri Chandra Mohan Garg & Shri Prashant Maharishi

…d on the sole ground only as reasons recorded itself has no basis. 5. Replying to the above, the ld. DR placing reliance on the decision of the Hon'ble Jurisdictional High Court of Delhi in the case of CIT Vs. Nova Promotors and Finlease Pvt. Ltd reported in 342 ITR 169 [Del] contended that the information from Investigation Wing of the department can be sole basis for reopening of assessment and initiation of proceedings u/s 147 of the Act and notice issued u/s 148 of the Act in this regard should be held as valid. However, on specific 4 query from the bench, the ld. DR could not assist us whether the name of…

M/S. Alpna Packaging Pvt. Ltd., Delhi vs. ITO, New Delhi

In the result the appeal is dismissed

Bench: Shri Vijay Pal Raoalpna Packaging Pvt. Ltd, Ito, Alpna Cinema Building, Ward-1(3), Vs. Model Town, New Delhi Delhi Pan:Aacca9729K (Appellant) (Respondent)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC-I”: NEW DELHI BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER Alpna Packaging Pvt. Ltd, ITO, Alpna Cinema Building, Ward-1(3), Vs. Model Town, New Delhi Delhi PAN:AACCA9729K (Appellant) (Respondent) Appellant by : Sh. K. Sampath, Adv Respondent by : Dr. Anjula Jain, Sr. DR Date of Hearing 17.12.2015 Date of pronouncement 22.01.2016 O R D E R This appeal by the assessee is directed against the order dated 05.01.2015 of ld. CIT(A), New Delhi arising from penalty order passed u/s 271(1)(c) of the Act for the Assessment Year 2005-06. 2. The assessee has raised the follow…

Praveen Kumar Jain, Delhi vs. ITO, New Delhi

In the result the appeal of the assessee is allowed

Bench: Shri Vijay Pal Raopraveen Kumar Jain, Ito, C/O. Kapil Goel, Adv, Ward-39(3), Vs. F-26/124, Sector-7, New Delhi Rohini, Delhi Pan:Ahhpk2948R (Appellant) (Respondent)

…ration then the sufficiency of reason and establishing on merits of the matter are not required at the stage of issuing of notice u/s 148. She has also relied upon the judgment of the Hon’ble High Court in the case of CIT Vs. Nova Promoters Finlease Pvt. Ltd. 342 ITR 169. 7. The ld DR further contended that when the assessee has declared income at Rs.12030 then the deposit of such a huge amount of Rs.6 lacs in the bank account itself is sufficient to believe that the income assessable to tax has escaped. 8. I have considered the rival submission as well as the material on record. The AO has reopened the assessmen…