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TMI Blog2024 (6) TMI 1197X X X X Extracts X X X X X X X X Extracts X X X X ..... s and from M/s Envestor Trust for Rs. 6.30 Crores. Therefore, the source of time deposit made by that assessee during that year stood explained. This being the case, there remain nothing with revenue to doubt the credit received by present assessee before us. Thus as rightly concluded in the impugned order, the assessee successfully proved the identity and creditworthiness of the investor and also the genuineness of the transactions. Decided against revenue. - Hon ble Shri V. Durga Rao, JM And Hon ble Shri Manoj Kumar Aggarwal, AM For the Appellant : Shri Nilay Baran Som (CIT)- Ld. DR. For the Respondent : Shri R. Sivaraman (Advocate)- Ld.AR. ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeal by Revenue for Assessment Year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not ascertainable in the absence of return of income or financial statements of Iwell Trust? Evidently, the sole issue that arises for our consideration is addition made by Ld. AO invoking the provisions of Sec. 68. 2. The Ld. CIT-DR advanced arguments supporting the assessment framed by Ld. AO whereas Ld. AR submitted that the assessee fulfilled the requirements of Sec. 68 and therefore, the impugned additions have rightly been deleted in the impugned order. Having heard rival submissions and upon perusal of case records, our adjudication would be as under. Assessment Proceedings 3.1 The assessee being a resident firm is stated to be engaged in the business of investment in shares, securities, assets money etc. An assessment was framed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution amongst 38 beneficiaries. It was further submitted that the source of investment as made by the trust was investment in trust by Shriram Ownership Trust (SOT). The entire capital investment was stated to be sourced by Iwell Trust from SOT. 3.4 On the basis of these facts, Ld. AO held an opinion that the sole motive of establishing the Iwell Trust was to influx the money to assessee firm who, in turn, was to invest in M/s Eywa Pharma. There were common directors in assessee firm and M/s Eywa Pharma. The Ld. AO concluded that, in terms of requirements of Sec. 68, the assessee failed to prove the identity and creditworthiness of the source of funds which were utilized to invest in shares of M/s Eywa Parma. Further, the assessee could not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. CIT(A) noted that the funds were transferred from Shriram Ownership Trust (SOT) and Envestor Trust to Iwell Trust and Iwell Trust transferred the same to the assessee i.e., Iwell Investment which was utilized to make investment in M/s Eywa Pharma. In the light of these facts, Ld. CIT(A) concurred with assessee s submissions that the ingredients of Sec.68 were duly fulfilled and impugned additions were to be deleted. The relevant findings of Ld. CIT(A) were as under: - 5.11 As seen above the appellant had already submitted the fund flow to the AO vide submission dated 30.03.2021. The appellant also submitted these details to the undersigned. These details prove that the Iwell Trust -source of 65,31,66,662/- had sufficient funds for co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs. The assessee fully explained the flow of funds with documents which remain undisputed before us. The only reason for making addition was the fact that the assessee could not furnish Income Tax Return of Iwell Trust. During appellate proceedings, it transpired that notice u/s. 148 was issued to Iwell Trust and that entity filed its return of income on 27.04.2022. This return has been subjected to scrutiny assessment and an order has been passed u/s. 147 r.w.s. 144B on 23.03.2023 accepting the returned income of that entity. A copy of the same has been placed on page nos. 123 to 130 of the paper book. In Para 3.8, Ld. AO has drawn conclusion that the deposits made by the assessee were out of funds received from M/s Shriram Ownership Trus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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