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2019 (6) TMI 1290 - AT - Income TaxUnexplained cash credit u/s.68 - money received in the form of preference share capital has come through FDI route - original documents were not submitted before the AO - HELD THAT:- We find that money received in the form of preference share capital has come through FDI route with the proper approval of FIPB and RBI by filing requisite statutory forms and complying with the requisite conditions prescribed thereon. There is no question of doubting the genuineness of the said transactions. The assessee has received preference share capital from Aanya Properties (I) Ltd. which is holding 31% equity in the assessee company which means the preference share capital is received from the existing share holder of the assessee company. The assessee has given various documentary evidences pertaining to the investor company i.e. Aanya Properties (I) Ltd. proving the identity and creditworthiness thereon. Hence the three necessary ingredients of Section 68 have been duly complied with by the assessee in the instant case. Merely because the original documents were not submitted before the AO, the photo copy of the said documents cannot be summarily brushed aside and ignored in order to draw the adverse inference against the assessee company. Key management personnel of Aanya Properties (I) Ltd. is stationed at Mauritius and merely because of his non-appearance before the AO, no adverse inference could be drawn against the receipt of preference share capital by doubting the veracity of the same, without rebutting various documentary evidences that are already available on record. Since this is more of a factual issue, we do not deem it fit to adjudicate the various decisions relied upon by the ld. AR before us. There is no need for setting aside of this appeal to the file of the AO as prayed by the ld. DR as it would only tantamount to giving second innings to the AO, which in our considered opinion, would not serve any purpose, as no second view is possible in the instant case and as these details were already before the AO. No infirmity in the order of the CIT(A) who had appreciated the entire facts and documentary evidences available on record, granting relief to the assessee. - Decided against revenue
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