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TMI Blog2024 (1) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in deleting the addition of FCCB proceeds of Rs. 1304,10,00,000/- u/s. 68 of the Act without appreciating the fact that the assessee had failed to discharge its onus of establishing the identity creditworthiness and genuineness of the actual holders of individual certificates collectively represented by single global certificate which is prerequisite condition of section 68 of the Act? (iii) Whether on the facts and in circumstances of the case, Hon'ble ITAT was justified in not appreciating that Deutsche Bank Luxembourg SA - Registrar, the agent of the assessee, responsible for maintaining the name of the subscriber register was not provided by the assessee, whereas assessee was duty bound to produce such subscriber regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 10th October 2006. Assessee issued the offer document to Barclays Bank clarifying that the bond will be represented by a single global certificate. The terms and conditions of the bond were given as per schedule to the subscription agreement provided that bonds were to be issued in registered form in denomination of US$ 100 each. It also provided that no individual certificate in respect of interest in any bond was to be issued in exchange of global certificate except in the circumstances provided in the clause. 3. The payment of US$ 290.40 million was made by way of subscription for FCCB which assessee has received from Barclays Bank through Deutsche Bank and issued a receipt on 15th October 2010. FCCB of US$ 300 million were transferre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal of the revenue by an order pronounced on 12th May 2017. It is this order that is impugned in this appeal. 6. It was submitted on behalf of the revenue that assessee had not provided details of actual bondholders to whom the lead manager Barclays Bank had ultimately transferred the bonds. The identity, creditworthiness and genuineness has to be looked into vis à vis the subsequent bondholders collectively represented by global certificate. It was also submitted that the lead managers are not the subscribers or at least the ultimate subscribers and assessee was required to cause the register of the bondholders to be maintained by the Registrar. The failure to produce the names of the subsequent bondholders and failure to give thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee did not have an obligation to prove the identity, capacity and creditworthiness of the actual subscriber, i.e., the sources source. 8. The said order in the case of Reliance Communication Ltd passed by the Tribunal was impugned by the revenue in this court under Section 260A of the Act. The same issue as raised in case at hand was raised therein. The appeal was dismissed, against which an SLP was preferred by the revenue. The SLP also came to be dismissed. 9. The Tribunal in the case at hand has concluded and rightly so that the facts in the case of Reliance Communication Ltd are similar to assessee's case in the case at hand and the ground raised by revenue were also identical. Therefore, on facts the Tribunal correctly came to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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