Case Number: ITA 5893/DEL/2019
Appellant: DCIT, Circle-23(1), New Delhi
Respondent: Shri Balaji Infradevelopers Pvt Ltd, New Delhi
Assessment Year: 2012-13
Case Filed On: 2019-07-05
Order Type: Final Tribunal Order
Date of Order: 2023-01-05
Pronounced On: 2023-01-05
Summary:
The case of DCIT Circle-23(1) vs Shri Balaji Infradevelopers Pvt Ltd pertains to a tax dispute for the assessment year 2012-13. The appellant, DCIT, Circle-23(1), New Delhi, contested the deletion of an addition by the CIT (Appeals) regarding share application money received by Shri Balaji Infradevelopers Pvt Ltd, New Delhi. The case was subsequently brought before the Income Tax Appellate Tribunal (ITAT) for resolution.
Background:
Shri Balaji Infradevelopers Pvt Ltd, located in New Delhi, was involved in a tax dispute with the Income Tax Department regarding the assessment year 2012-13. The primary issue was the addition of Rs. 3.20 crore as unexplained credits under section 68 of the Income Tax Act, 1961, which the company received as share application money including share premium.
Grounds of Appeal:
Tribunal Proceedings:
During the hearing, the tribunal reviewed the relevant material and heard the arguments from the appellant’s representative. The respondent, Shri Balaji Infradevelopers Pvt Ltd, did not appear despite several notices. The tribunal noted that the Assessing Officer (AO) had added the amount as unexplained credits due to non-compliance from the respondent in providing the necessary details during the assessment proceedings.
The CIT (Appeals) had deleted the addition based on additional evidence submitted by the respondent during the appellate proceedings. However, the AO had objected to the admission of additional evidence, stating that the respondent did not provide a valuation report for the share allotment and received payments in cash from existing shareholders, thus failing to discharge the onus under section 68 of the Income Tax Act.
Tribunal’s Decision:
The tribunal observed that the CIT (Appeals) had not properly examined the factual aspects and the objections raised by the AO. The tribunal emphasized the need for a thorough examination of the submissions and additional evidence by the AO before arriving at a conclusion.
In the interest of justice, the tribunal remitted the matter back to the AO with directions to decide the issue afresh in light of the submissions considered by the CIT (Appeals) and to grant the respondent adequate opportunity of being heard.
Conclusion:
In conclusion, the tribunal allowed the appeal filed by the Revenue for statistical purposes, directing the AO to re-examine the issue and make a fresh determination based on the evidence and submissions provided by the respondent.
Order Pronouncement:
Order was pronounced in the open court on 5th January 2023.
—
(CHANDRA MOHAN GARG)
JUDICIAL MEMBER
(SHAMIM YAHYA)
ACCOUNTANT MEMBER
Copy forwarded to:
DCIT Circle-23(1) vs Shri Balaji Infradevelopers Pvt Ltd – Tax Dispute for Assessment Year 2012-13
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