Purochem India Pvt. Ltd.,, New Delhi vs Assessee

This appeal by the assessee for the assessment year 2004-05 is directed against the order of learned CIT(A)-XVII, New Delhi dated 19th July, 2013.

2. The ground of appeal No.6 of the assessee is as under:-

" On the facts and in the circumstances of the case ld.CIT(A)-XVII erred in upholding the illegal additions of Rs.5,00,000/- u/s. 68 on account of unexplained income by the Respondent ignoring the fact that the transaction being capital receipt was well explained and supported by 2 ITA-5462/Del/2013

records and documents already filed before AO. Hence the order(s) may be vacated and demand may be deleted."

3. The learned counsel for the assessee submitted that all the evidences to prove the genuineness of the credit entries were filed before the Revenue authorities, copy of which has been filed in the compilation from page 27 onwards. He submitted that the various evidences in the form of copy of share application, confirmation, income tax return, accounts statement, permanent account number, cheque issued to the assessee company for investment in shares, master data downloaded from the site of Ministry of Corporate Affairs, affidavit of the director, bank statement etc. were filed before the Assessing Officer. He submitted that the identity, creditworthiness of the share applicant parties along with the genuineness of the transaction were proved by the assessee.

4. Learned DR has opposed the submissions of the learned counsel for the assessee. He referred to the relevant portion of the assessment order and the appellate order passed by the learned CIT(A) in support of the case of the Department. He relied on the order of the Assessing Officer and the CIT(A). He further submitted that the summons were issued to M/s Hopewin Admark & Consultancy Services Pvt.Ltd. and nobody appeared before the Assessing Officer. He submitted that during the appellate proceedings, only a letter was received from this company and no director attended personally.

5. We have considered the rival submissions and have perused the order of the Assessing Officer and the CIT(A). The claim of the assessee, that it has filed the copies of number of documents detailed above before the Assessing Officer in support of its claim regarding the identity, creditworthiness and genuineness of the transaction of 3 ITA-5462/Del/2013

deposit by the company from whom the assessee has received the amount in question, could not be controverted by the Revenue. Merely because no one has attended personally on behalf of M/s Hopewin Admark & Consultancy Services Pvt.Ltd., is no ground to make the addition in the hands of the assessee. The summons issued to M/s Hopewin Admark & Consultancy Services Pvt.Ltd. were served on them and they had filed the confirmation and other evidences before the Assessing Officer. During the course of appellate proceedings before the learned CIT(A) also, M/s Hopewin Admark & Consultancy Services Pvt.Ltd. has filed a letter confirming the fact of having applied share capital to the assessee company. In these facts of the case, we hold that the onus on the assessee to prove the entry has been discharged by it and no case of addition u/s 68 of the Income-tax Act, 1961 could be made by the Department. Accordingly, the issue is decided in favour of the assessee and ground No.6 of the assessee's appeal is allowed.

6. The other grounds of appeal No.1 to 5 raised by the assessee relate to the issue of legality of reassessment notice issued u/s 147 of the Act. In view of our above decision in the appeal of the assessee on merits, we are not adjudicating the legal issues regarding the legality of reopening of assessment u/s 147 of the Act.

7. In the result, the appeal of the assessee is allowed.

Decision pronounced in the open Court on 6th May, 2015.

Sd/- Sd/- (INTURI RAMA RAO) RAO) (G.C. (G.C. GUPTA) GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT

VK. 4 ITA-5462/Del/2013

Copy forwarded to: -

1. Appellant : M/s Purochem India Pvt. Ltd., 94, Swyam Sidh Co- Co-op Society, Near Madipur Village, West Punjabi Bagh, New Delhi - 110 026.

2. Respondent : Income Tax Officer, Ward- Ward-14(4), New Delhi - 110 002.

3. CIT 4. CIT(A) 5. DR, ITAT

Assistant Registrar