ACIT, Central Circle-13,New Delhi. VS. M/s C-l, India Pvt. Ltd.,D-5, Defence Colony,New Delhi.
July, 27th 2012
1 ITA 1424, 1425, 1426 & 1427/Del/2012
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "G" NEW DELHI
BEFORE SHRI R.P. TOLANI AND SHRI SHAMIM YAHYA
ITA nos. 1424, 1425, 1426 & 1427/Del/2012
Asstt. Yrs: 2001-02, 2002-03, 2003-04 & 2004-05
M/s C-l, India Pvt. Ltd., Vs. ACIT, Central Circle-13,
D-5, Defence Colony, New Delhi.
PAN NO. AABCC 4078 L
Appellants by : Sh. S.R. Wadhwa Adv.
Respondent by : Sh. V.K. Saksena CIT(DR)
PER R.P. TOLANI. J.M::
These are four appeals, filed by the assessee against separate orders
of CIT(A) for A.Yrs. 2001-02, 2002-03, 2003-04 & 2004-05.
2. Ground nos. 1 to 4 in all these appeals are not pressed, hence
2 ITA 1424, 1425, 1426 & 1427/Del/2012
2.1. Other grounds raised are as under:
(1) Addition on account of share capital in A.Ys. 2001-02 & 2002-03
A.Y. 2001-02 = Rs. 9,34,15,000
A.Y. 2002-03 = Rs. 65,85,000
(2) Addition on account of unexplained loans in AYs 2001-02 &
A.Y. 2001-02 = Rs. 75,00,000/-
A.Y. 2003-04 = Rs. 9,53,00,000
(3) On account of-
20% of ROC fee -
A.Y. 2001-02 = Rs. ,22,238/-
A.Y.2002-03 = Rs. 5,22,238/-
A.Y.2003-04 = Rs. 5,25,667
A.Y. 2004-05 = Rs. 5,22,238/-
(4) 20% of Travelling, telephone, printing etc.
A.Y.2001-02 = Rs. 4,26,863/-
A.Y. 2002-03 = Rs. 4,26,863/-
A.Y. 2003-04 = Rs. 4,26,863/-
A.Y. 2004-05 = Rs. 4,26,863/-
(5) Legal & professional charges, treated as capital expenditure:
A.Y. 2001-02 = Rs. 4,00,000/-
(6) 20% of Business plan expenditure:
3 ITA 1424, 1425, 1426 & 1427/Del/2012
A.Y. 2002-03 = Rs. 4,12,520/-
A.Y. 2003-04 = Rs. 4,12,520/-
A.Y. 2004-05 = Rs. 4,12,520/-
(7) Annual membership fee:
A.Y. 2002-03 = Rs. 3,05,482/-
(8) Interest U/s 234A & 234B
3. The assessee is a private limited company incorporated on 11-08.2000
with the main object of pursuing E-Commerce and software business. Briefly
stated, the main additions made are about share capital and loans in this case,
which were made on same facts and circumstances as in the case of Shri
Suresh Nanda in the same assessment years. It was contended on behalf of
the assessee company that no addition ought to be made as cash credits
under section 68 of the Act on account of share capital and also the loans
received from Y2K Systems Ltd as the onus that lay upon it had been
discharged during the assessment proceedings. It was explained that:-
(i) the share capital and loans had been received by the assessee
from its holding company Y2K Systems Ltd Mauritius through
(ii) the audited Balance Sheets of the holding company had been
filed and had also been obtained independently by the
(iii) these Balance Sheets clearly reflect the said amounts having
been received by the assessee;
(iv) the tax residency certificate of Y2K Systems Ltd had been filed;
4 ITA 1424, 1425, 1426 & 1427/Del/2012
(v) the incorporation particulars of the company in Mauritius had
3.1. Hence according to the assessee company no addition under 68 of the
Act was sustainable.
3.2. It was further contended that the same amount with the same
explanation was held to be belonging to Mr Suresh Nanda and was also
added substantively in his hands. As such, the same amount had been taxed
substantively in two hands with the same explanation and findings. The
nature of the amount is also the same being money allegedly belonging to
Mr. Suresh Nanda and purportedly brought in by him as share capital in the
3.3. It is trite that the same amount cannot be taxed doubly unless the
nature of the amount changes or it is so provided in the Act. Various
judgments have been cited by both parties but this issue is well settled and
does not need any judicial examination.
3.4. Same additions were made in both the cases on substantive basis. Both
the parties agreed that the facts & circumstances are similar in both the cases
and the issues may be decided in view of the appeals of Shri Suresh Nanda.
4. By order of even date in the case of Shri Suresh Nanda in ITA nos.
1428,1429 & 1430/Del/2012 for A.Ys. 2001-02, 2002-03 & 2004-05 we
have set aside these issues back to the file of AO to decide the same afresh
after giving the parties adequate opportunity of being heard afresh.
Following our order in the case of Shri suresh Nanda we set aside the issues
back to the file of AO accordingly to decide afresh along with the issues as to
whether any addition at all is called for and, if so in which case the addition
5 ITA 1424, 1425, 1426 & 1427/Del/2012
is to be made.
5. Apropos remaining grounds, it is pleaded that the disallowances
have been made on ad hoc basis without considering the explanation
furnished by the assessee and the ITAT judgment in its own case.
6. Since we have set aside the main issues back to the file of AO, interest
of justice will be served if the remaining issues in these appeals are set aside
back to the file of AO to decide all these issues after considering the
explanation given by the assessee and ITAT order.
7. In the result, all the appeals filed by the assessee are allowed for statistical
Order pronounced in open court on 24-7-2012.
(SHAMIM YAHYA ) ( R.P. TOLANI)
ACCOUNTANT MEMBER JUDICIAL MEMBER
MP Copy to :