Relief to Jaguar Buildcon: ITAT deletes Addition worth Rs.103.80 Cr made on account of Unexplained Share Capital and Premium as no adverse material brought by AO
In a major relief to Jaguar Buildcon, the Delhi Bench of Income Tax Appellate Tribunal (ITAT) deleted the addition worth Rs.103.80 Crores made on account of unexplained share capital and premium as no adverse material brought by AO. The assessee, Jaguar Buildcon is engaged in the business of share trading, future option, commodities, consultancy services, and hotel industry....
In a major relief to Jaguar Buildcon, the Delhi Bench of Income Tax Appellate Tribunal (ITAT) deleted the addition worth Rs.103.80 Crores made on account of unexplained share capital and premium as no adverse material brought by AO.
The assessee, Jaguar Buildcon is engaged in the business of share trading, future option, commodities, consultancy services, and hotel industry. The assessee has received share application money of Rs.23 crore. Out of Rs.23 crores, Rs. 4.50 crore was received from M/s. TVH Trading Company and Rs.18.50 crore from Vishaka Tech Pvt. Ltd. The shares could not be allotted to these parties and the share application money has been treated as advance received against the property for which the assessee-company has filed confirmation from the said parties to this effect.
The Revenue has challenged the deletion of addition of Rs.103,80,00,000/- made u/s. 68 on account of unexplained share capital and premium; and in the Assessment Year 2012-13, the Revenue has challenged the deletion of addition of Rs.23 crore made u/s. 68 on account of unexplained share capital and premium.
The coram of Judicial Member, Amit Shukla and Accountant Member Prashant Maharishi said that it cannot be held that the onus cast upon the assessee to prove the identity, creditworthiness of the investee parties or genuineness of the transaction has not been explained properly nor there is any adverse finding or material gathered from any inquiry that it is a bogus transaction or kind of accommodation entry.
Thus, the tribunal did not find any reason to tinker and deviate from the finding of the CIT(A) while deleting the addition. Accordingly, the order of the CIT (A) is confirmed and the appeal filed by the Revenue is dismissed.
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