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Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI
Before: Dr. B. R. R. KumarSh. Anubhav Sharma
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the Revenue against the order of the ld. CIT(A)-7, New Delhi dated 07.10.2019.
The case of the assessee has been selected for scrutiny to enquire in respect of ‘large share premium’ received during the year. The Assessing Officer made addition u/s 68 of the Income Tax Act, 1961, of the share premium received by the assessee namely, Quanta Power Solutions India Pvt. Ltd. from its holding company, Quanta Power Netherland owing to non-submission of bank statements of both the companies and the approval of the RBI during the assessment proceedings.
Before the ld. CIT(A), the assessee submitted that the copy of bank statement of Quanta Netherland and FCGPRs.
2 Quanta Power Solutions India Pvt. Ltd. FCGPR is not an approval from RBI but is a reporting form wherein companies are required to report the Foreign Direct Investment (FDI) inflows in the country. Both ‘FCGPR’ and ‘Return of allotment’ are forms filled in and submitted by an Indian company to intimate the respective authorities of fresh issue/allotment of shares. Thus, the return of allotment submitted by the assessee to ROC spells out the details of issue of shares, as clearly as Form FCGPR does. Also FIRCs submitted by the assessee are document issued by the bank that acts as testimonial for inward remittances. The assessee has submitted copies of FCGPRs in respect of share allotment on 15.05.2015 and 27.07.2015 and the FCGPR form for allotment on 20.10.2015 could not be submitted. However, corroboratly the ROC details have been filed. The ld. CIT(A) after examination of copy of resolution of Board of Directors of Appellant in respect of share issuance to Quanta Netherlands, return of allotment of shares filed with the Registrar of Companies evidencing the allotment of shares to Quanta Netherlands, copy of Foreign Inward Remittance certificates issued by the bankers of the Appellant for the receipts of the share application money (including amount of share premium), copy of bank statement of the Appellant evidencing the receipt of amount towards share application including share premium from Quanta Netherlands, copy of ledger account of share capital and share premium of A.Y. 2016-17 and Tax Residency certificate of Quanta Netherlands.
3. Since, the ld. CIT(A) has allowed the appeal of the assessee after going through the submissions, evidences in detail, we decline to interfere with the order of the ld. CIT(A).
3 Quanta Power Solutions India Pvt. Ltd. 4. In the result, the appeal of the Revenue is dismissed. Order Pronounced in the Open Court on 15/07/2022.