Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: empanelment :: form 3cd :: articles on VAT and GST in India :: VAT Audit :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: Central Excise rule to resale the machines to a new company :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARD
« From the Courts »
  Dr. Gautam Sen vs. CCIT (Bombay High Court)
 Dr. Gautam Sen vs. CCIT (Bombay High Court)
 DCIT vs. Shivshankar R. Sharma (ITAT Mumbai)
 ACIT vs. Jawaharlal Agicha (ITAT Mumbai)
 CIT vs. M/s. D. Chetan & Co (Bombay High Court)
 Makes further amendments to Notification no. 157/90-Customs dated 28th March, 1990 regarding temporary admission under the ATA Carnet
 Appointment of Common Adjudicating Authority by DGRI - 2/2016-Customs
 ransfers Of Hon’ble Members Of The ITAT (September 2016)
 M. G. Contractors Pvt. Ltd vs. DCIT (ITAT Delhi)
 Haryana State Road & Bridges Development Corporation Ltd vs. CIT (P&H High Court)
 Dharamshibhai Sonani vs. DCIT (ITAT Ahmedabad)

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

              DELHI BENCH "G" NEW DELHI

              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.
New Delhi.
(Appellant)                             (Respondent)

              Appellants by     : Sh. S.R. Wadhwa Adv.

              Respondent by : Sh. V.K. Saksena CIT(DR)



      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
dismissed accordingly.
       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
              banking channels;

      (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
             been filed.'

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
assessee company.

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.

Sd/-                                                    Sd/-

(SHAMIM YAHYA )                                   ( R.P. TOLANI)
ACCOUNTANT MEMBER                                JUDICIAL MEMBER

MP Copy to :

   1.   Assessee
   2.   AO
   3.   CIT
   4.   CITCA)
   5.   DR
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions