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2023 (5) TMI 944 - AT - Income TaxAddition on protective basis - credits in the bank accounts of the assessee and foreign company - assessment for the A.Y. 2019-20 stands completed u/s 10(3) of the Black Money Act on a substantive basis - whether the appeal of the revenue for the same assessee be challenged both count first when the addition is made substantively for one year and protective on the other years? - HELD THAT:- Once the substantive addition has been made in the year in which such assets come to the notice of the Assessing Officer that can be charged to tax in the year as per clear mandate of provision of law and since the matter is already under consideration for assessment year 2019-20. The separate addition made in the respective years on protective basis and the appeal filed by the department against the finding of the ld. CIT(A) for these years is not maintainable and has rightly held by the ld. CIT(A) that the protective addition for the year under consideration is not warranted as the same is entirely contrary to the provision of section 3 of the Black money Act. Charge of tax - Beneficial owner of bank accounts of foreign company - Credits in the bank accounts of the assessee and foreign company - Who is beneficial owner of the alleged undisclosed assets and the income therefrom, of an independent non resident foreign company? - HELD THAT:- Place of Effective Management of the said foreign company is situated outside India because of which, the company is a non-resident in India within the meaning of section 6 of the income tax act and none of the assets were liable to be taxed in India. Reference has been made to the CBDT circular dated 23.02.2017 bearing Circular No. 08/2017. Therefore, in no view of the manner taxability arise in the present case proving that the entire edifice of the case is wholly unjust and illegal. Therefore, we are of the view that the non-resident foreign company M/s. Agrasen Polymers FZE based at UAE is a separate legal entity and all the funds/investments etc. belong to the company and no tax liability can be fastened on the assessee. Additions of transactions in the hands of the appellant which solely belong to the non-resident foreign company cannot be added in the hands of the Appellant. Dividend pertained to the non-resident company, cannot be taxed in the hands of the assessee.
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