Income Tax Appellate Tribunal - Delhi
Acit Circle-2(2), New Delhi vs Anarock Incestment Advisors Pvt Ltd, ... on 19 April, 2024
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'A', NEW DELHI
Before Sh. Kul Bharat, Judicial Member
Dr. B. R. R. Kumar, Accountant Member
ITA No. 7832/Del/2019 : Asstt. Year : 2014-15
ACIT, Vs. M/s Anarock Investment Advisors Pvt.
Circle-2(2), Ltd., (Formerly known as Jones Lang
New Delhi-110002 Lassalle Investment Advisors Pvt. Ltd.),
1110, Ashoka Estate, Barakhamba Road,
Connaught Place, New Delhi-110001
(APPELLANT) (RESPONDENT)
PAN No. AACCJ8495R
Assessee by : Sh. Praveen Kumar, CA
Revenue by : Sh. Kanv Bali, Sr. DR
Date of Hearing: 15.04.2024 Date of Pronouncement: 19.04.2024
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the Re venue against the order of ld. CIT(A)-5, New Delhi dated 26.06.2019.
2. Following grounds have been raised by the Revenue:
" 1 . T h e L d . C I T( A) h a d e r r ed in l a w a n d on f a c t s in d e l et in g th e add it i on m a de o f t h e sh a r e a p pl i c a t i o n mon e y u/ s 6 8 o f th e In c o m e T ax A ct , 19 6 1 a s th e a ss e s s e e fa i l ed t o d is ch a rg e th e on u s ca st up on it t o p ro v e th e c r edi t w o rt hi n e ss o f t h e p e r son f ro m w h om th e a mou n t w a s r e c ei v e d, d es pi t e b ei ng giv en s ev e r al o p p o rt u ni t i e s. "
3. During the year, the assessee company has received share application money from two entities namely M/s. Khushi Trust, IC North West Avenue, Delhi of Rs. 1,00 ,00,000 and from Jones Lang LaSalle India Investment Management Pte. Ltd. (JLL), 9, Raffles Place Republic Plaza, 39, Singapore of Rs.2,30,30,000/-.
2 ITA No. 7832/Del/2019Anarock Incestment Advisors Pvt. Ltd.
4. The Assessing Officer after obtaining the due details has accepted the share capital received from Khushi Trust. Owing to non-filing of FIRC and copy of Bank Statement, the Assessing Officer treated the amount of share application money received from Jones Lang LaSalle India Investment Management Pte. Ltd.(JLL) u/s 68 of the Income T ax Act, 1961.
5. Aggrieve d, the assessee filed appeal before the ld. CIT(A).
6. Before the ld. CIT(A), the assessee disputed addition of Rs.2,30,30,000/- on account of share application money received from their group concern at Singapore M/s John Lang LaSalle India Investment Pvt. L td. (JLL). This addition has been made by the AO due to the reason that neither co nfirmatio n was received nor ITR /rele vant documents have bee n produced to prove identity, genuineness and creditworthiness of the party.
7. Before the ld. CIT(A), it was submitted tha t this amount has been rece ived from the existing shareholder and the money has been received through this non-resident foreign company and subjected to FDI policy and Foreign Exchange Regulations issue s by the RBI. It w as stated that the FDI policy and Foreign Exchange Rules have been duly complie d and received through RBI permission from banking channels. The confirmation, their accounts and other details have been provided to show the identity, creditworthiness and genuineness of transactions before the revenue authorities.
8. Before the ld. CIT(A), the assessee has provided additional evidences viz ., the permission to receive money in India, accounts of the investor, confirmation of inves tor and other 3 ITA No. 7832/Del/2019 Anarock Incestment Advisors Pvt. Ltd.
details. The ld. CIT(A) held that M/s John Lang LaSalle India Investment Pvt. Ltd. (JLL) is o ne of the joint ve nture partner, holding 49% s take in the assessee company and it is an existing share holder. Owing to the submission o f additio nal evide nces, confirmation, permissio n for Foreign Exchange and allotment of share s, other documentation to receive this fund such as FC- GPR and letter from the bank etc. the ld. CIT (A) held that assessee is able to prove the identity, creditw orthines s and genuineness of transaction and therefore this a ddition is not calle d for.
9. Before us, the ld. DR relie d on the order of the Assessing Officer while the ld. AR supported the order of the ld. CIT(A).
10. Having gone thro ugh the entire record, it is apparent that the share capital has been received from M/s John Lang LaSalle India Investment Pvt. Ltd. (JLL), the existing share holder, who is also one of the partners of the joint ventures, the entire approvals from the RBI and the fiscal regulations pertaining to contr ibution o f money towards the share capital have been duly fulfilled, hence, we hereby affirm the order of the ld. CIT(A).
11. In the re sult, the appeal of the Revenue is dismissed. Order Pronounced in the Open Court on 19/04/202 4.
Sd/- Sd/- (Kul Bharat) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 19/04/2024 *Subodh Kumar, Sr. PS*