2021 (4) TMI 770

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.... has filed an application for condonation of delay stating that the delay is due to the COVID-19 lockdown by the Central Govt. in the entire country w.e.f.25.3.2020. She also submitted that the Hon'ble Supreme Court in suo moto writ petition (Civil) No.3/2020 dated 8th March, 2021 directed that the period w.e.f. 15.3.2020 to 14.3.2021 should be excluded from the period of limitation due to the COVID lockdown. Taking the same into consideration, we hold that the petition filed by the assessee is within the period of limitation. 3. Coming to the alleged mistake apparent from record, the assessee is seeking rectification/modification of Tribunal's order u/s 254(2) of the Act. There are several contentions which are raised by the assessee ....

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.... Rs. 10,67,53,833/- was debited to the account "Advance Lease Rental". f) As per the supplementary lease agreement, the lessee company agreed to discharge the liability of Rs. 9,60,78,450/- by allotting shares. Accordingly, it allotted 48,03,923 Equity shares of Rs. 10/- each on 31.3.2011. This amount is debited to the Petitioner's account and credited to the share application/share capital account. g) As per the supplementary lease agreement, the lessee allotted further 48,03,923 Equity shares of Rs. 10/- each on 2.4.2011. This amount is debited to Petitioner's account and credited to Share application/share capital account. By this entry the entire amount payable by the lessee to the petitioner was adjusted against share cap....

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....1.2011, 2.4.2011 and the TDS represent the income assessable u/s 56(2)(vii)(c )(i) of the I.T. Act as no consideration was paid. As the shares were allotted during the financial years 2010-11 and 2011-12, the CIT (Appeals) enhanced the assessment for the assessment year 2011-12 by holding that the value of Rs. of Rs. 4,80,39,230/- and the TDS of Rs. 1,06,75,383/- represent the income assessable u/s 56(2)(vii)(c) (i). The petitioner before the Hon'ble ITAT pleaded in appeal that: i) In so far as allotment of shares is concerned, the amount is recorded as payable by the petitioner in the books of account of the company. The amount was due and the shares were not without consideration. As submitted in the earlier paragraph, initially....

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.... "Advance Lease Rentals" was reversed by the company by making a journal entry. The said company did neither pay the advance lease rentals nor credit any amount on account of TDS. Such TDS was not paid by the company to the Central Government account. It was neither claimed as a deduction of tax by the petitioner nor allowed by the Assessing Officer as a deduction from the tax payable. Therefore, the benefit to the extent of Rs. 1,06,75,383/- did not accrue to the petitioner. It was neither paid by the company nor received by the petitioner. Therefore, no gain was derived by the petitioner to the extent of Rs. 1,06,75,383/- . 5. In the facts and circumstances of the case, the provisions of Sec. 56(2) (vii)( c) (i) of the I.T. Act are not....