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2022 (4) TMI 19 - AT - Income TaxAddition u/s 68 - bogus accommodation entry in the guise of share capital and premium - HELD THAT:- Facts on record show that the assessee received investment from M/s Blue Bay Hospitality Pvt. Ltd through banking channel and the fair value of the shares have been determined as per the guidelines of the RBI. The undisputed fact is that on a reference made by the competent authority to FT&TR,I CBDT, the Mauritius authorities have confirmed the transaction. Mauritius Taxing Authority have also confirmed that Shri Joseph Thomas is the ultimate beneficial owner of M/s Blue Bay Hospitality Pvt. Ltd and has given unsecured loan to the company. The Mauritius Taxing authority have also 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. 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. Addition stands deleted. Ground No. 1 is dismissed. Capitalization of travelling expenses - HELD THAT:- AO has made a general observation that these expenses were incurred by the directors for personal purposes whereas we find that after verifying the documentary evidence brought on record, the ld. CIT(A) was convinced that the travelling expenses were incurred by the directors for business purposes of the appellant for putting up hotel in Goa. There is no evidence brought on record by the Assessing Officer to prove that these expenses were of personal in nature. Therefore, we do not find any reason to interfere with the findings of the ld. CIT(A). Ground No. 2 also stands dismissed.
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