TaxTMI 
TaxTMI 
TaxTMI 
2012 (8) TMI 1008
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....ication of section 2(22)(e). The assessee is trying to show the real transaction of loan/advance as receipt of share application money and allotment of share (which is not genuine activity); only as an afterthought. 2 That the appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground (s) of appeal at any time before or during the hearing of this appeal. " 2. At the outset, considering the nature of issue, the Bench rejected the request for adjournment on behalf of the assessee and proceeded to dispose of the appeal after hearing the representatives from both the sides. 3. Facts, in brief, as per relevant orders are that the return declaring income of Rs. Rs. 4,29,40,331/- filed on 27.09.2008 by t....
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....ssessee in view of decision in the case of Balotia Engg. Works Pvt. Ltd. vs. CIT, 275 ITR 399 (Jharkhand),holding that share application money parttook the character of deposit. Since the share application money was deposited with the assessee on 20-12-2007 while shares were allotted only in July, 2010 i.e. after a period of more than 30 months in pursuance to the board resolution dated 22nd July, 2010, the AO concluded that the amount of Rs. Rs. 1 crore was, in fact, advance and explanation regarding share application money was an afterthought, query having been raised much earlier regarding taxation of amount as deemed dividend . Accordingly, the AO brought to tax the amount of Rs. 1 crore and advance of Rs. 3,96,888/- as deemed dividend ....
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..../10-11 dt. 22.07.2010, copy of the audited balance sheet, ledger accounts etc. of the appellant company and KMTPL for the year ended 31.3.2008 duly showing the receipt of the above amounts as chare capital/advance against orders, copy of Board Resolution dt. 22.7.2010 of the appellant company allotting 50,000 share KMTPL, copy of list of allottees, copy of receipt no.GAR7 of MCAS and Form No.2 showing the above allotment of shares, copy of bank statement with Indusland Bank, New Delhi Branch maintained by the appellant company and 10B, Vasant Vihar Branch maintained by KMTPL showing the payments and receipts of the above amounts, copy of the Income Tax return of KMTPL for assessment year 2008-09 etc. in support of its contention. In view of....
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.... in the hands of the assessee in the light of decision in Balotia Engg. Works Pvt. Ltd. (supra) and did not adduce any reason in support of the amount of Rs. 3,96,888/- .On appeal, the ld. CIT(A) ,on the basis of copy of share application form dated 20.12.2007 filed by KMTPL for purchase of 50,000 shares of the assessee company, copy of related share certificate no.01/10-11 dated 22.07.2010, copy of the audited balance sheet, ledger accounts etc. for the year ended 31.3.2008 of the assessee company and KMTPL copy of Board Resolution dated 22.7.2010 of the assessee company allotting 50,000 share to KMTPL, copy of list of allottees, copy of receipt no.GAR7 of MCAS and Form No.2 showing the allotment of shares, and copy of the Income Tax retur....
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....an be treated as "loan" or "deposit" within the meaning of provisions of sec. 269SS of the Act nor the Addl. CIT. The ld. CIT(A) found as a fact that the shares were subsequently allotted to the applicant-companies as shown by the form filed before the Registrar of Companies. Neither the AO nor the Additional CIT took the trouble to examine this aspect while imposing the penalty and merely relied on the judgment of the Hon'ble Jharkhand High Court (supra). Similar is the situation in the instant case. The AO did not even attempt to examine as to whether or not the share application money can be treated as "loan" or "advance" within the meaning of provisions of sec. 2(22)(e) of the Act. There is nothing on record to show that these transact ....
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....f it has been made, on fulfillment of certain conditions. In CIT vs. Sunil Chopra, Hon'ble jurisdictional High Court in their decision dated 27.4.2010 in ITA no.106 of 2011 held that share application money could not be construed as loan or advance within the meaning of sec. 2(22)(e) of the Act. In CIT vs. I.P. India Pvt. Ltd., Hon'ble jurisdictional High Court in their decision dated 21.11.2011 in ITA no. 1192/2011 concluded that the receipt of share application monies for allotment of shares in the assessee-company could not be treated as receipt of loan or deposit. In the light of view taken by the Hon'ble jurisdictional High Court in the aforesaid decisions, especially when the ld. CIT(A) found as a fact that the amount of Rs. 1 crore w....