2024 (6) TMI 1197

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....icer [AO] u/s. 143(3) of the Act on 28.04.2021. The grounds taken by the Revenue read as under: 1. The order of the CIT(A) is contrary to law, facts and circumstances of the case. 2. Whether the Ld. CIT(A) had erred in deleting the addition made u/s. 68 in the absence of Return of Income of Iwell Trust wherein as per the fourth proviso to section 139(1) a person who holds as a beneficial owner any asset located outside India or is a beneficiary of any asset located outside India is required to file return of income even if he is not required to furnish a return u/s. 139(1) of the Act? 3. Whether the Ld. CIT(A) had erred in deleting the addition made u/s. 68 where the quantum of actual income received on behalf of ....

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.... the assessee made investment of USD 1 million (INR 65.31 Crores) in ordinary shares of a Singapore based foreign entity viz. Eywa Pharma Pte. (M/s Eywa Pharma) The said entity was stated to be engaged in sale of pharmaceuticals products in regulated markets. The assessee submitted that it was long-term strategic investment. The investment has been made along with another high quality investing group i.e. Fidelity International of USA. 3.2 The source of this investment was stated to be capital contribution by the 4 partners, 3 of which had capital of Rs. 100/- each. However, almost all the capital contribution of Rs. 65.33 Crores was made by 4th partner i.e. Iwell Trust. The assessee could not furnish Income Tax Return of this entity as ....

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....eedings 4.1 During appellate proceedings, the assessee reiterated that Iwell Trust was private discretionary trust and it was not required to file Income Tax Return. The income of the trust was assessable in the hands of the beneficiaries only. Attention was further drawn to the fact that Iwell trust filed return of income in response to notice u/s. 148 on 27.04.2022 and an assessment was framed u/s. 143(3) accepting the returned income. The trust deed of Iwell trust, bank statement of Shriram Ownership Trust, Envestor Trust and Iwell Trust was stated to be already uploaded on 25.01.2021, 05.02.2021 and 04.03.2021 on e-filing portal during the assessment proceedings but NeAC failed to consider the same and made impugned additions. On the....

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....for tax and hence it did not file its return. The same was claimed to be filed later in response to the notice u/s. 148. The copy of the notice was enclosed. 5.12 The above discussion clearly proves that the appellant had provided all details to the AO during the assessment. The appellant has also enclosed the acknowledgment sheet showing the said details enclosed with its submissions dated 30.03.2021 addressed to the AO. The appellant has submitted all these details afresh during the appeal proceedings 5.13 Therefore the addition made u/s. 68 at Rs. 65,31,66,662/-is directed to be deleted. The ground no 1 ,2 15 and 16 raised against the action of the AO to make the said addition and levy interest are hereby allowed. Ag....