Allahabad High Court
The Commissioner Of Income Tax-Ii ... vs M/S P.N.C. Construction Co. Ltd. ... on 4 April, 2013
Bench: Prakash Krishna, Ram Surat (Maurya)
HIGH COURT OF JUDICATURE AT ALLAHABAD
Court No. - 32
Case :- INCOME TAX APPEAL No. - 501 of 2009
Petitioner :- The Commissioner Of Income Tax-Ii Agra And Another
Respondent :- M/S P.N.C. Construction Co. Ltd. Agra
Petitioner Counsel :- A. N. Mahajan
Respondent Counsel :- Shubham Agrawal
Hon'ble Prakash Krishna,J.
Hon'ble Ram Surat Ram (Maurya),J.
The present appeal has been filed against the order dated 6th February, 2009 passed by the Income Tax Appellate Tribunal, Agra Bench, Agra, in I.T.A. No.64/Agr/2008 for the Assessment Year 2004-05.
The assessee is a private limited company registered under the Companies Act. It filed its return of income on 27th October, 2004. The returned income was not accepted b y the Assessing Officer and certain additions were made. The said order has been set aside in appeal by the Commissioner of Income Tax (Appeals), who accepted the returned income and the contention of the assessee. The Department carried the matter unsuccessfully before the Tribunal. In the memo of appeal the following three questions has been proposed.
"(1) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in deleting the addition of Rs.6,30,00,000/- made by the A.O. By invoking the provisions of Section 68 of the Act on account of unexplained share capital and premium received by the assessee?
(2) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in deleting the disallowance of Rs.6,49,58,446/- made by the A.O. Under the various head as mentioned in the assessment order after rejecting the books of account of the assessee?
3. Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in coming to the conclusion that since no material defects has been pointed out by the A.O., therefore, provision of Section 145(3) cannot be invoked, especially when assessing officer in his assessment order has pointed out numerous defects in books of account and thereafter resorted to Section 145(3) of the I.T. Act, 1961."
Heard Sri Shambhu Chopra, learned Standing Counsel for the Department and Sri Shubham Agrawal, learned counsel for the assessee-respondent.
We find that the Tribunal and the Commissioner of Income Tax (Appeals) have found that the accounts books have been maintained by the assessee in the ordinary course of business and they reflected true and correct income. It has been further found that the turnover of the assessee has gone up by more than 60% as compared to the last year and the GP rate has increased to 13.99% as compared to 10.89% in the preceding year. The Tribunal has examined the case from this angle also and found that even account books are rejected the past history of the assesee is the best guide and even if past history of the assessee is adopted, it cannot be said that the assessee had suppressed the income. The findings recorded by the Tribunal are essentially the findings of fact and are based on relevant material on record. Learned counsel for the appellant could not point out any perversity therein. We are of the view that no substantial question of law is involved in the the appeal. The appeal is dismissed summarily. However, otherwise also in view of the judgment of the Apex Court in the case of CIT vs Lovely Exports (P) Ltd., 216 CTR 195, the law is in favour of the assessee respondents wherein it has been held that the share application money cannot be added in the income of the assesee company.
(Ram Surat Ram (Maurya), J.) (Prakash Krishna, J.)
Order Date :- 4.4.2013
mt
Case :- INCOME TAX APPEAL No. - 501 of 2009
Petitioner :- The Commissioner Of Income Tax-Ii Agra And Another
Respondent :- M/S P.N.C. Construction Co. Ltd. Agra
Petitioner Counsel :- A. N. Mahajan
Respondent Counsel :- Shubham Agrawal
Hon'ble Prakash Krishna,J.
Hon'ble Ram Surat Ram (Maurya),J.
Dismissed.
For order see order of date passed on the separate sheets.
(Ram Surat Ram (Maurya), J.) (Prakash Krishna, J.)
Order Date :- 4.4.2013
mt
