2013 (3) TMI 557

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....u/s 10A of Rs.64,87,472/-.   During the course of assessment proceedings, the AO on perusal of balance sheet, under schedule 10 being 'current liabilities' observed that the assessee has shown share application money received from Transecute India Pvt. Ltd (TIPL) of Rs.1.3 crores. According to the AO since the directors were common i.e. Shri Divyank Turakhia and Shri Bhavin Turakhia hold 39.22% each in TIPL and 40% shares each in the assessee's company. Therefore, there was prima facie reason that the money advanced by TIPL to the assessee shown under the head 'current liability' as share application money received may be covered by the provisions of section 2(22)(e) of the Income Tax Act, 1961(in short the Act). On being asked, it wa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 4. Being aggrieved by the order of the ld. CIT(A), the Revenue is in appeal before us challenging in all the grounds the deletion of addition of Rs.16,60,652/- made by the AO u/s 2(22) (e) of the Act. 5. At the time of hearing, the ld. DR while relying on the order of the AO further submits that since the assessee has refunded the said amount on 2.9.2006, therefore, it is not a share application money but the loan/advance to the assessee-company liable to tax u/s 2(22)(e) of the Act and therefore, the ld.CIT(A) was not justified in deleting the addition made by the AO. He, therefore, submits that the order passed by the AO be restored. 6. On the other hand, the ld. Counsel for the assessee while reiterating the same submissions as submi....