2018 (10) TMI 1942

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....end. 2. The assessee filed its return of income declaring a total income of Rs. 29,540/-. The Assessing Officer noticed that the assessee has shown receipt of "share application money" of Rs. 21,48,000/- in the balance sheet. It was also noticed that the same was received by the assessee during the financial year 2001-02. The Assessing Officer asked the assessee as to why share application money stated above should not be assessed u/s. 68 of the Act. Since the assessee did not furnish any reply, the Assessing Officer assessed the above said sum of Rs. 21.48 lakhs as income of the assessee u/s. 68 of the Act. 3. The Assessing Officer further noticed that the Sundry debtor's balance consisted of amount due to the assessee from the following....

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.... the assessee has filed this appeal before us. 6. We have heard the parties and perused the record. First issue relates to addition made u/s. 68 of the Act. There is no dispute with regard to fact that the impugned share application money was received in the financial year 2002-03 and earlier years, meaning thereby, this amount was not received by the assessee during the year under consideration. The Hon'ble Delhi High Court had an occasion to consider an identical issue in the case of CIT Vs. Usha Stud Agriculture Farms Ltd. (order dated 14.3.2008), wherein it was held that addition should not be made in respect of cash credit, if the same was received during the year under consideration. Relevant observation made by Hon'ble High ....

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....g of fact recorded by the CIT(A) that this credit balance appearing in the accounts of the assessed, does not pertain to the year under consideration, under these circumstances, the Assessing Officer was not justified in making the impugned addition under Section 68 of the Act and as such no fault can be found with the order of the Tribunal which has endorsed the decision of the CIT(A). 10. The above being the position, no fault can be found with the view taken by the Tribunal. 7. In the instant case also, the Assessing Officer was not justified in law in making addition during the year under consideration, since the assessee has not received impugned share application money during the year under consideration. Accordingly, we set asid....