TaxTMI 
TaxTMI 
2022 (4) TMI 19
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....(A) erred in law and on facts in deleting the addition of Rs. 16,67,89,253/- made u/s 68 of the Income-tax Act, 1961 [hereinafter referred to as 'The Act'] being bogus accommodation entry in the guise of share capital and premium. 2. The ld. CIT(A) erred on facts and in law in allowing capitalization of travelling expenses of Rs. 8,30,746/-." 3. Representatives were heard at length. Case records 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 Rs. 10/- issued at a premium of Rs. 110/- to M/s Blue Bay Hospitality Pvt Ltd, Mauritius for a....
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.... sum of Rs. 11,86,783/- on account of travelling expenses claimed to have been incurred for the purpose of business and profession during the year under consideration. The Assessing Officer was of the firm belief that the assessee has incurred these expenses on personal trips of the directors of the company and the expenses are personal in nature, and accordingly, de-capitalized Rs. 8,30,748/-. 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 th....
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....ation by an authority competent under an agreement referred to in Section 90 or 90A of the Act. The reference was made vide letter dated 25.02.2015 of the Assessing Officer, which was forwarded through Principal Commissioner-1, Delhi to the Joint Secretary (FT&TR; II CBDT vide letter dated 02.03.2013. 15. Reference was made by the Joint Secretary (FT&TR)-II to Director, Large Taxpayer 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 sta....
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....so 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. 22. We further find that the 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. 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 Rs. 16,55,47,646/- stands deleted. Ground No. 1 is dismissed. 24....