Reclassification, differential duty, confiscation and penalties quashed where department lacked chemical evidence and improperly reopened past clearan...
The ITAT allowed the appeal, holding that the assessee's equity investments in its foreign wholly-owned subsidiary were bona fide business investments made to acquire and expand an operating concern abroad; the write-off of the foreign investment (Rs. 97,61,190) was a commercial loss deductible as business loss (not capital loss or bad debt) and the Commissioner (A) was reversed. The Tribunal also deleted an addition under s.68/115BBE in respect of USD 154,282 (Rs. 99,23,830), finding the receipt to be an advance against supplies from an identified related foreign customer remitted through banking channels with supporting documentation; consequently the identity, genuineness and source were established. Ground(s) allowed.
The ITAT allowed the appeal, holding that the assessee's equity investments in its foreign wholly-owned subsidiary were bona fide business investments made to acquire and expand an operating concern abroad; the write-off of the foreign investment (Rs. 97,61,190) was a commercial loss deductible as business loss (not capital loss or bad debt) and the Commissioner (A) was reversed. The Tribunal also deleted an addition under s.68/115BBE in respect of USD 154,282 (Rs. 99,23,830), finding the receipt to be an advance against supplies from an identified related foreign customer remitted through banking channels with supporting documentation; consequently the identity, genuineness and source were established. Ground(s) allowed.
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