Case Number: ITA 1008/DEL/2021
Appellant: Income Tax Officer, Ward-18(3), New Delhi
Respondent: Norm Consultants Pvt. Ltd., New Delhi
Assessment Year: 2002-03
Result: 2002-03
Case Filed on: 2021-08-24
Order Type: Final Tribunal Order
Date of Order: 2023-06-28
Pronounced on: 2023-06-28
This case involves an appeal filed by the Income Tax Officer (ITO) against the order dated 31.08.2020, passed by the Commissioner of Income Tax (Appeals)-37, New Delhi. The dispute pertains to the addition made under Section 68 of the Income Tax Act, 1961, regarding unexplained share application money and share premium for the assessment year 2002-03.
The pertinent facts relevant to the adjudication of the case are as follows:
The core issue to be adjudicated was whether the CIT(A) erred in deleting the addition of Rs.4,00,00,000/- made by the AO under Section 68 of the Income Tax Act.
The Revenue argued that the CIT(A) was incorrect in holding that the return filed on 31.10.2002 should be treated as the return in response to the notice under Section 148 and hence, no notice under Section 143(2) was required.
The Tribunal examined the facts of the case and found that the assessee had not filed a return in response to the notice issued under Section 148 of the Income Tax Act, 1961. Therefore, the notice under Section 143(2) could not have been issued.
The Tribunal noted that the provisions of Section 143(2) require a notice to be served on the assessee to ensure that the income has not been understated, excessive loss has not been computed, or tax has not been underpaid. Since the return was not filed in response to the notice under Section 148, the CIT(A)’s adjudication on this issue was against the facts on record.
The Tribunal held that the CIT(A) erred in deleting the addition made by the AO under Section 68. The appeal of the Revenue was allowed.
Order: In the result, the appeal of the Revenue is allowed.
Order Pronounced in the Open Court on 28/06/2023.
-Sd/- (Yogesh Kumar US, Judicial Member)
-Sd/- (Dr. B. R. R. Kumar, Accountant Member)
Date: 28/06/2023
Copy forwarded to:
Assistant Registrar
ITAT, New Delhi
ITO vs. Norm Consultants Pvt. Ltd.: Share Application Money Scrutiny for AY 2002-03
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