ITAT deletes share capital in case of companies belonging to Shri Y.S. Jagan Mohan Reddy group.
Short overview :
1. A search was conducted by the Central Bureau of Investigation (CBI) in the hands of Shri Jagan
Mohan Reddy and his group of companies on 18.08.2011.
2. The information collected by CBI during the course of search was passed
on to the Income tax department.
3. The allegation of the CBI was that the share applicant companies have
been selected by Shri Y.S. Jaganmohan Reddy and they have received
benefits from State Government of Andhra Pradesh during the tenure
of Shri Rajasekar Reddy in the form of licences/projects, public
properties, SEZs, Mining leases, ports, real estate permissions and
4.The case of CBI was that these share applicants, in
turn, have given bribes to Shri Y.S. Jaganmohan Reddy under the guise of purchasing shares in companies controlled by him at high premium.
5.The details of additions made by the AO are given below: –
(A) CARMEL ASIA HOLDINGS: –
Assessment year 2007-08 6059.79 lakhs
Assessment year 2008-09 1878.58 lakhs
(B) JANANI INFRASTRUCTURE P LTD: –
Assessment year 2007-08 1210.17 lakhs
Assessment year 2008-09 769.55 lakhs
6. The decision rendered by
Hon’ble Supreme Court in the case of NRA Iron and Steel P Ltd (supra) was considered in this order
7. Additions were deleted