No additon u/s 68 if assessee failed to produce persons who had applied as shareholders-
SC dismissed SLP
IT: SLP dismissed against High Court ruling that additions made to income of assessee under section 68 in respect of amount received as share capital on ground that assessee expressed its inability to produce share applicants had rightly been set aside by Tribunal as assessee could not have been assessed to tax to find out person who had applied as shareholder
[2018] 95 taxmann.com 331 (SC)
SUPREME COURT OF INDIA
Commissioner of Income Tax
v.
Jalan Hard Coke Ltd.
ROHINTON FALI NARIMAN AND ABHAY MANOHAR SAPRE, JJ.
SPECIAL LEAVE PETITION (CIVIL) DIARY NO. 16078 OF 2018†
MAY 15, 2018 vinay
Section 68 of the Income-tax Act, 1961 – Cash credits (Share capital) – Assessee-company filed details of share capital money before Assessing Officer showing that there are number of share applicants who applied for allotment of shares and most of them were residing in Delhi and each application was for Rs. 2 lakhs each and payment was made by demand drafts – Assessee also filed photocopies of share applications but informed Assessing Officer that directors of company did not consider allotment of shares favourable to company and as such they did not allot shares to any of these applicants and share application money remained with company, which later, company invested in purchase of flat at Mumbai – Assessing Officer required assessee to produce all persons/share applicants for examination – Assessee expressed its inability to produce share applicants, however, submitted that since share application had been received from identifiable persons having capacity and creditworthiness of making share application no addition under section 68 should be made – Commissioner (Appeals) however, made additions to income of assessee under section 68 – Tribunal by order deleted additions made by Commissioner (Appeals) – High Court by impugned order held that view taken by Tribunal was just and proper as assessee-company could not have been assessed to tax to find out person who had applied as shareholder – Whether Special Leave petition against said impugned order was to be dismissed – Held, yes [Para 2] [In favour of assessee]
vinay
CASE REVIEW
CIT v. Jalan Hard Coke Ltd. [2018] 95 taxmann.com 330 (Raj.) (para 2) [SLP dismissed].
Ms. Pinky Anand, ASG K. Radhakrishnan, Sr. Adv., Ms. Nisha Bagchi, Ms. Kirti Dua, Ms. Gargi Khanna, Advs. and Mrs. Anil Katiyar, AOR for the Appellant.
ORDER
1. Delay condoned.
2. The Special Leave Petition is dismissed.
JYOTI
In favour of assessee.
†Arising out of order of High Court in CIT v. Jalan Hard Coke Ltd. [2018] 95 taxmann.com 330 (Raj.).
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