2009 (8) TMI 1205 - AT - Income Tax

Tax Appeal Victory: Assessment Years 2003-04 & 2005-06 Overturned

M/s Sikka Overseas P. Ltd. Versus Income-tax Officer, Ward 8 (4), New Delhi

The appellant successfully appealed against the assessment and penalty imposed for the Assessment Years 2003-04 and 2005-06. For the year 2003-04, the ... - Issues involved: Appeals by assessee against assessment for Asstt. Years 2003-04 and 2005-06, and against penalty u/s 271(1)(c) of the Income-tax Act, 1961 in the respective years.Assessment Year 2003-04:The appellant contested the addition of share money from various persons, arguing that the share application money received should not be added to the assessee's income based on relevant judgments. The contention was that the details were provided to the AO, but the CIT(A) rejected the claim citing new evidence. The Tribunal noted the conflicting views and referred the issue back to the AO to seek confirmations from the assessee and decide accordingly, considering the legal precedents.The Tribunal allowed the appeal for statistical purposes and set aside the penalty appeal for the same year, pending the resolution of the main issue.Assessment Year 2005-06:The appellant challenged the addition of a specific amount paid by one of the directors on behalf of the company, which was later converted into share application money. The appellant argued that all relevant documents were submitted to the authorities, and the director's identity and tax assessment status were established. The Tribunal found that the documents submitted were not new evidence, as claimed by the CIT(A), and ruled in favor of the appellant, deleting the additions made.Consequently, the penalty imposed under section 271(1)(c) was also deleted. The Tribunal allowed the appeal for this year as well.Separate Judgement:None.