Shivam Infra Projects Pvt. Ltd. vs. ITO

Parties Involved

Facts Summary

The present appeal was filed by Shivam Infra Projects Pvt. Ltd. against the order passed by the National Faceless Appeal Centre, Delhi under Section 250 of the Income Tax Act, 1961. The assessee challenged the addition made to the income of Rs.53,10,000/- being share premium treated as an accommodation entry for routing in own money/income of the assessee. The assessee argued that the share premium was received in the preceding year and not in the impugned year. The matter was carried in appeal before the Ld. CIT(A) where the assessee filed detailed submissions and explanations. The Ld. CIT(A) set aside the matter to the file of the AO for consideration of the evidence furnished by the assessee. The assessee contended that there was no reason for the matter to be set aside to the file of the AO since it was sufficiently demonstrated before the Ld. CIT(A) that the impugned amount of Rs.53,10,000/- received by the assessee by way of share premium was not received in the impugned year but was received in the preceding year. The assessee pleaded that he had raised this argument before the Ld. CIT(A), who noting that the order passed by the AO was ex parte, had restored the matter back to the AO for adjudication afresh. The ld. Counsel for the assessee pleaded that he had filed the copies of balance sheets of the assessee for both the impugned year and the preceding year to evidence the fact of receipt of share premium of Rs.53,10,000/-during the preceding year and not in the impu…

Legal Issues

• 1. The validity of the assessment framed u/s 147 of the Act on the ground that the order was passed without valid jurisdiction.
• 2. The assessee's contention that the AO had not applied his mind on the facts relating to the escapement of income of the assessee for the impugned year while recording reopening the case of the assessee.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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