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TMI Blog2023 (10) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... methodology used for calculating the premium. Assessee has correctly argued before us, that insofar as the foreign investor is concerned, i.e., BBHL, the respondent/assessee could not have allotted shares below the floor price, which was Rs. 95.07 per share. This, to our mind, explains the difference between the price per share collected by the respondent/assessee from BBHL as against domestic investors. It is also relevant to note that the domestic investors, i.e., the two individuals, are promotor directors of the respondent/assessee, which is why perhaps, they were allotted shares at face value. The third domestic investor, i.e., Blue Ocean Resorts Pvt. Ltd. is controlled by Rishal Sawhney and Rohini Sawhney. As noticed hereinabove, both persons hold 50% shares in the said company. The argument advanced by revenue that the onus was on the respondent/company to further demonstrate credit worthiness of the source of source, i.e., Mr Joseph Thomas, is flawed as the amendment in law with regard to the identifying source of source was inserted by way of a proviso to Section 68 of the Act with effect from 01.04.2013. Therefore, this obligation in law could not be cast on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plications moved on behalf of the appellant/revenue, seeking condonation of delay in filing and re-filing the appeal. 1.1 According to the appellant/revenue, there is a delay of five (5) days in filing, and three hundred and forty-seven (347) days in re-filing the appeal. 2. As noted above, the delay in filing is short. However, the delay in refiling is substantial. 3. Mr Sachit Jolly, who appears on behalf of the respondent/assessee, has pointed out that the explanation given in the application for condonation of delay in re-filing is, prima facie, inaccurate. 3.1 It is contended that the reason trotted out for seeking condonation of delay in re-filing is that the appellant/revenue had to re-type certain documents. Mr Jolly points out that none of the documents that have been placed before the court are re-typed. 3.2 Furthermore, Mr Jolly says that contrary to what has been stated in the application, no administrative approval was required for seeking condonation of delay in re-filing the appeal. 4. Clearly, the reasons furnished do not align with the record. However, having regard to the fact that the delay is in re-filing, we are inclined to condone the delay, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Resorts Pvt. Ltd. (Mr. Rishal Sawhney Ms. Rohini Sawhney hold 50 % shares each) 40,00,000 Rs 4,00,00,000 Mr Rajive Sawhney 40,05,000 Rs 4,00,50,000 Mr Rishal Sawhney 11. Given the aforesaid circumstances, Mr Sanjeev Menon, learned standing counsel who appears on behalf of the appellant/revenue, says that both additions were wrongly deleted by the Tribunal. 11.1 According to Mr Menon, insofar as the investment made by BBHL was concerned, the amount received by the respondent/assessee was rightly added to its income, having regard to the fact that the respondent/assessee had failed to demonstrate the creditworthiness of the source of source. 12. In this case, the source of source was a person going by the name Mr Joseph Thomas, a resident of the United Arab Emirates [UAE]. 13. In sum, Mr Menon contended that the transaction concerning investment made by BBHL was not genuine. Insofar as the other addition qua travelling expenses was concerned, Mr Menon once again relied upon the assessment order. 13.1 In support of his submission that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board of Direct Taxation had approached its counterparts in Mauritius, i.e., Mauritius Revenue Authority. The concerned Mauritius authority gave details as to the persons who were directors of BBHL and indicated in their response, that the directors were residents of Mauritius. Furthermore, the very same authority also clarified that Mr Joseph Thomas was the beneficial owner of the BBHL. (ix) Besides this, the concerned authority of Mauritius also provided the financial statements concerning BBHL for the period spanning between 04.05.2011 to 31.12.2011 and 01.01.2012 to 31.12.2012. (x) The Mauritius Revenue Authority had also forwarded the bank statement of BBHL maintained with AFR Asia Bank for the period spread between 05.05.2012 and June 2012. This statement demonstrated that Rs. 40,00,060/- had been transferred to India for investing in the respondent/assessee. (xi) The amount invested by BBHL was received in the respondent/assessee s account maintained with the Lajpat Nagar Branch of Axis Bank. 16. Having regard to the aforesaid facts, both the CIT(A) and the Tribunal deleted the additions made by the AO regarding share application money and premium amountin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Mr Menon has conceded that although steps were envisaged to make enquiries with competent authorities in UAE, this process did not fructify. This, to our mind, establishes that at some stage, the appellant/revenue recognized the fact that they had to place material on record to show that the investment was dubious. (ii) Second, insofar as Mr Joseph Thomas is concerned, the CIT(A) found that he furnished a personal loan to BBHL. Therefore, insofar as BBHL was concerned, the fund flow was disclosed to the statutory authority. Beyond that, in the AY in issue, nothing further was required to be shown. 21. The onus, if at all, at this stage, in our view, shifted to the appellant/revenue. The appellant/revenue has not alluded to any material that would even faintly disclose that this was a case of round-tripping. 21.1 Therefore, the deletion ordered by the CIT(A) which was confirmed by the Tribunal, was, in our view, the correct call, in the facts and circumstances obtaining in the case. 22. This brings us to the other aspect, i.e., disallowance of 70% of the expenses incurred by the respondent/assessee for arranging hotel accommodation, air passage and vehicles for its ..... X X X X Extracts X X X X X X X X Extracts X X X X
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