By C. N. Vaze
Jagdish T. Punjabi
Bhadresh Doshi
Chartered Accountants
4 TS-432-ITAT-2017 (Ahd.)
Namision Powertech Pvt. Ltd. vs. ACIT
ITA No. : 218/AHD/2015
A.Y.: 2010-11 Date of Order: 21st
September, 2017
FACTS
During the financial year
2009-10, the assessee company received a sum of Rs. 19,00,000 towards share
application money from Smt. Pammi Sandesara, daughter of one of the directors
of the assessee company. The Assessing Officer (AO) held that the source of
funds in the hands of Smt. Pammi Sandesara and her creditworthiness are not
proved. He rejected the explanation
furnished by the assessee viz. that she was a resident of USA, money was
received in US dollars through her ICICI Bank account in India.
Aggrieved, the assessee
preferred an appeal to CIT(A) who upheld the action of the AO.
Aggrieved,
the assessee preferred an appeal to the Tribunal.
HELD
The Tribunal observed that
Smt. Pammi Sandesara was a resident of USA as was evident from her passport. It
also noted that the earnings statement of her husband issued by NetApp Inc USA
was filed. The payments were made through banking channels and receipts in her
bank account were also through banking channels.
The relationship between
the assessee-company and the shareholder is well established in the sense that
the shareholder is the daughter of one of the directors of the company. It is,
therefore, not a transaction between two strangers and her bank accounts show prima
facie evidence of the means of the shareholder. The amounts have been
received through the banking channels. The Tribunal held that bearing in mind
all these factors, the receipts from Smt. Pammi Sandesara cannot be treated as
unexplained cash credit. The Tribunal deleted the addition made by the AO.
The Tribunal allowed the
appeal filed by the assessee.
