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आदेश/Order
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the Revenue against the order dated 06.04.2018 of the Commissioner of Income Tax (Appeals)-2, Jalandhar [hereinafter referred to as CIT(A)].
Following grounds have been raised by the assessee in this appeal :-
Whether on the facts and in circumstances of the case, the Ld. CIT (A) has erred in law in accepting the plea of the assessee that amount of Rs. 9.72 Crore represented gifts received by Sh. Anubhav Aggarwal from his brother-in-law Sh. Roman Umarov when no such explanation/ evidence was filed during assessment proceedings.
Whether on the facts and in circumstances of the case, the Ld. CIT (A) has erred in law in accepting
ITA No.955-C-18- Genex Polyfab Ltd., Ludhiana 2
the explanation of the assessee which was never furnished before the AO, thereby admitting additional evidence / grounds in violation of Rule 46A of the Income Tax Rules.
The Appellant craves leave to add or amend the grounds of appeal on or before is heard and disposed off.
The brief facts relating to the issue are that the Assessing officer
noticed that during the year under consideration a sum of ₹ 9.72 crores
was found credited in the account of the assessee which was received from
Russia under the head as “Promoter Contribution”. The Assessing officer
asked the assessee to prove the identity, creditworthiness and genuineness
of the source of the funds. Since the assessee could not satisfy the
Assessing officer about the source of funds, the Assessing officer made
the impugned additions into the income of the assessee treating the said
amount as own unaccounted income of the assessee.
Being aggrieved by the above noted income of the assessee, the
assessee preferred appeal before the Ld. CIT(A).
Before the Ld. CIT(A), the assessee submitted that the aforesaid
amount of ₹ 9.72 cores had been invested by the Director and Promoter of
the assessee company namely Shri Abubhav Aggarwal, who was an NRI
and married with a Russian national. That the source of amount in the
hands of Shri Anubhav Aggarwal was gift from his brother in law based in
Russia. The said amount of ₹ 9.72 crores received from his brother in law
was invested by Shri Abhinav Aggarwal in the company. To prove this
contention, the assessee also furnished copies of the bank statements, the
ITA No.955-C-18- Genex Polyfab Ltd., Ludhiana 3
confirmation from Shri Anubhav Aggarwal and also the copy of the
account of Shri Anubhav Aggarwal in the book of the assessee showing
the investment made by Shri Anubhav Aggarwal, the Promoter - director
of the company. It was also explained before the Ld. CIT(A) that even in
the assessment proceedings of Shri Anubhav Aggarwal, an addition of ₹
20,27,66,730/-, which included the aforesaid amount of ₹ 9.72 cores, was
made in the hands of Shri Anubhav Agagrawal in his individual capacity.
Since the addition of the amount of ₹ 20,27,66,730/- which included the
aforesaid amount of ₹ 9.72 cores was made into the income of Shri
Anubhav Aggarwal, in the circumstances, the source of funds at the hands
of Shri Anubhav Aggarwal was duly proved. The assessee has also proved
genuineness of the transactions by furnishing the copies of the bank
accounts to prove that the aforesaid entries were routed through the bank
account into the account of the assessee- company. The Ld. CIT(A)
considering the above documentary evidence, deleted the addition so made
by the Assessing officer.
After hearing the Ld. representatives of both the parties, we do not
find any reason to interfere in the above factual findings given by the
CIT(A) which remain unrebutted.
There is no merit in the appeal of the Revenue and the same is
accordingly dismissed.
Order pronounced in the Open Court on 22.04.2019.
Sd/- Sd/- (संजय गग� / SANJAY GARG) (एन. के. सैनी / N.K. SAINI) उपा�य� / Vice President �या�यक सद�य/ Judicial Member Dated : 22.04.2019 “आर.के.”
ITA No.955-C-18- Genex Polyfab Ltd., Ludhiana 4
आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File
आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar