TMI Blog2023 (9) TMI 981X X X X Extracts X X X X X X X X Extracts X X X X ..... the investor company, to show the source of investor company. It also comes up from the material on record that AT Holdings is tax resident of Singapore and has reported net profit of around Rs. 341 crores during the year ended 31st December, 2014. There is force in the contention of learned AR that in fact the investing company being foreign company, the source of source was not required to be established even after the amendment brought in Section 68 of the Act qua obligation to establish the source of source. AR has pointed out that for the same issue there was reopening of assessment u/s 147 for A.Y. 2012-13 and the assessment has been completed without any addition. AR has pointed out that in fact the money in the form of inve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Resorts Hotels Private Limited, was incorporated on 06th March, 2006 and is engaged in the business of building, managing, investing, administering, owning and running of hotels, resorts, motels, inns, apartment, condominium, restaurants, caterers, entertainment places, boarding and lodging, guest houses, cottages etc. Company is a wholly owned subsidiary of Experion Holdings PTE. Ltd. Singapore ('formerly known as Gold Hotels Resorts PTE Ltd) ( Experion Holdings ). Experion Holdings, is company incorporated in Singapore and is wholly owned by another Singapore company being AT Holdings PTE. Ltd. ( AT Holdings ). Experion Hospitality has issued 585 equity shares at the rate of 52,740/- per share (having face value of INR 10). The Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lding Pte Ltd. Singapore, the holding company of the appellant and therefore, no report received from FT TR for the year under consideration. The appellant has furnished complete evidences to prove the identity, creditworthiness and genuineness of the transaction of the investor company as per the provisions of section 68. Appellant has furnished the detail of PAN of the investor, registered address, Unique Identity Number of Experion Holding Pte Ltd. in Singapore, certificate of incorporation, tax residency certificate and financial statement of the investor company. The appellant has also filed the copies of the bank statement of investor and investee company and foreign inward remittance certificate to prove the genuineness of the transa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e based in tax heaven countries hence investment made by them creates suspicion about the source and genuineness of the transaction, whereas in the under consideration the investor company as well as ultimate holding company are based in Singapore and filing their return and showing investment in their return. They are having the financial capacities to make the investment in the subsidiary company and only on the basis of the statement of the Director addition could not be made ignoring the evidences furnished by the appellant in respect of share capital received during the year. Considering the above facts addition made by the AO at Rs. 3,08,52,900/- is not sustainable and it is hereby deleted. 3. The Revenue is in appeal raising fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord in the form of share capital and fund flow of the investor company to establish the creditworthiness. It also comes up from the material on record that AT Holdings is tax resident of Singapore and has reported net profit of around Rs. 341 crores during the year ended 31st December, 2014. There is force in the contention of learned AR that in fact the investing company being foreign company, the source of source was not required to be established even after the amendment brought in Section 68 of the Act qua obligation to establish the source of source. 7. Learned AR has pointed out that for the same issue there was reopening of assessment u/s 147 for A.Y. 2012-13 and the assessment has been completed without any addition. It will be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the office of the foreign entity has Deen shifted from earlier premises situated at 50, Raffeles Place, #15-05/06, Singapore Land Tower, Singapore-048623 of M/s Gold Hotels Resorts Pte. Ltd., to 3, Church Street, # 16-04/05, Samsung Hub, Singapore-049483. In support of their claim, they have submitted a copy of lease agreement with lessee the copy of submission made before the Accounting and Corporate Regulatory Authority(ACRA), Singapore in respect of change of address to 3, Church Street, # 16-04/05, Samsung Hub, Singapore-049483. 5. During the assessment proceeding, a reference has been made to Singapore Tax Authority through FT TR vide letter no. Pr.CIT- 3/FT TR/2019-20/2155 dated 23.12.2019, to verify the creditworthiness ..... X X X X Extracts X X X X X X X X Extracts X X X X
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