(Per : HONOURABLE MR.JUSTICE V. M. SAHAI)
1. We have heard Mr.M.R.Bhatt, learned Senior counsel appearing for the revenue on the following proposed questions of law.
1. Whether the Tribunal is right in law and on facts in deleting the addition of Rs. 95,22,350/- in respect of increase in share capital ?
2. Whether the Tribunal is right in law and on facts in deleting the addition of Rs. 5,01,200/- made under section 68 of the Actg being unsecured loan from M/s. Sharthak Securities Ltd. and M/s. Ama Finvest Pvt.Ltd. ?
2. So fas the question about deletion of addition of Rs. 95,22,350/- in respect of increase in share capital is concerned, the Tribunal has recorded a finding against the department in CIT v.Lovely Exports Pvt.Ltd. reported in216 CTR 195 in which it has been held that if the identity of shareholder is brought on record, then no addition can be made in the hands of the company who has received the share application money and the revenue is free to initiate proceedings against investors. Therefore, question no.1 does not raise any substantial question of law.
3. So far as the second proposed question no.2 is concerned, the Tribunal has affirmed the finding recorded by the CIT(Appeals) which has been extracted in para-7 of the order of the Tribunal.
4. In view of the finding of CIT(Appeals) which has been affirmed by the Tribunal, we find that this Appeal has concluded finding of fact. Both the questions proposed by the revenue are concluded by finding of fact. They do not raise any substantial question of law. This Tax Appeal is devoid of any merits and is accordingly dismissed.
(V.M.SAHAI,J) (N.V.ANJARIA,J) ***vcdarji Top