Case Number: ITA 1303/DEL/2021
Appellant: DCIT, Central Circle, Meerut
Respondent: RPG Industrial Products Pvt Ltd, New Delhi
Assessment Year: 2012-13
Case Filed On: 2021-10-04
Order Type: Final Tribunal Order
Date of Order: 2022-08-31
Pronounced On: 2022-08-31
The appeal by the Revenue was against the order of the ld. CIT(A), Kanpur, which pertained to Assessment Year 2012-13, questioning the deletion of significant quantum additions related to share capital injections alleged to be bogus.
The core issues contested included large sums reportedly credited as share capital and share premiums under questionable circumstances. The Revenue contended that these were facilitated through bogus entries, asserting lack of verification of the creditworthiness of the share applicants and absence of requisite documentary evidence during the assessment proceedings. Despite the arguments, the CIT(A) deleted the additions, prompting the Revenue to appeal the decision.
During tribunal proceedings, it emerged that the alleged discrepancies highlighted by the Revenue were not substantiated with concrete evidence. The tribunal noted the absence of specific discrepancies or inconsistencies in the cash credits listed by the Revenue. It was also noted that prior arrangements purportedly involving bogus entries were resolved under the Vivad se Vishwas Scheme, effectively nullifying the basis for the additions contested in this appeal.
The ITAT upheld the CIT(A)’s decision, agreeing that the assessee had adequately addressed the concerns raised and provided sufficient evidence to support the legitimacy of the share capital and premium entries. This case highlights the importance of detailed documentation and the impact of government schemes in resolving tax disputes.
Order pronounced in the open court on 31/08/2022.
Judicial Member: Ms. Astha Chandra
Accountant Member: Shri N.K. Billaiya
Order Dated: 31/08/2022
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