9911796707
TMI Blog2022 (4) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... pany. The Mauritius Taxing authority have also confirmed that the entire transaction has been done through banking channel and have also forwarded the bank statement of M/s Blue Bay Hospitality Pvt. Ltd. The funds were received with the permission from the RBI. Source of the source of the investment received by the assessee from M/s Blue Bay Hospitality Pvt. Ltd has been conclusively explained by the assessee and such source of source have been confirmed by the Manutius Revenue authority vide letter dated 04.05.2015 to the FT TR division. Addition stands deleted. Ground No. 1 is dismissed. Capitalization of travelling expenses - HELD THAT:- AO has made a general observation that these expenses were incurred by the directors for pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carefully perused. 4. Briefly stated, the facts of case are that during the course of scrutiny assessment proceedings, the Assessing Officer sought clarification from the assessee in respect of 15,04,978 equity shares of par value of ₹ 10/- issued at a premium of ₹ 110/- to M/s Blue Bay Hospitality Pvt Ltd, Mauritius for a total consideration of ₹ 16,55,47,646/-. 5. The Assessing Officer further asked the assessee to explain as to why during the same period equity shares were issued at par value @ ₹ 10/- each to M/s Blue Ocean Resorts Pvt Ltd, Shri Rajiv Sajhwhney and Shri Rishal Sawhney. 6. The assessee filed detailed reply. 7. After considering the facts and submissions, the Assessing Officer observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,30,748/-. 10. The assessee strongly agitated the matter before the ld. CIT(A). 11. Before the ld. CIT(A), it was strongly contended that the assessee has furnished all necessary evidences in respect of M/s Blue Bay Hospitality Pvt Ltd. It was explained that the price of share issued to M/s Blue Bay Hospitality Pvt Ltd was calculated in accordance with the guidelines of the Reserve Bank of India [RBI]. It was explained that the shares were valued in accordance with the DCF method as prescribed in the guidelines. 12. It was brought to the notice of the ld. CIT(A) that there is a master circular of Foreign Investment in India which was issued by the Foreign Exchange Department, RBI. Pricing guidelines in respect of fresh issue of sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yer Department, Mauritius Revenue Authority, Port Louis, Mauritius vide letter dated 14.03.2015 under Article 26 of the DTAA between India and Mauritius with reference to M/s Blue Bay Hospitality Pvt Ltd., Mauritius. 16. The ld. CIT(A) concluded by finding that the Mauritius Taxing Authority have confirmed the transaction and have also forwarded the bank statement of M/s Blue Bay Hospitality Pvt. Ltd. On the basis of conclusive evidences evidencing the transaction, the ld. CIT(A) deleted the addition. 17. In so far as the decapitalization 70% of the travelling expenses is concerned, the ld. CIT(A) found and examined the evidences in respect of travel made by the directors and was convinced that the travel was made for the business pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee and such source of source have been confirmed by the Manutius Revenue authority vide letter dated 04.05.2015 to the FT TR division. 23. Considering the conclusive evidences brought on record, we do not find any error or infirmity in the findings of the ld. CIT(A). Addition of ₹ 16,55,47,646/- stands deleted. Ground No. 1 is dismissed. 24. In so far as capitalization of travelling expenses is concerned, we find that the Assessing Officer has made a general observation that these expenses were incurred by the directors for personal purposes whereas we find that after verifying the documentary evidence brought on record, the ld. CIT(A) was convinced that the travelling expenses were incurred by the directors for bus ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
