Section 68 not applicable to remittance made by non-resident

ACIT Vs Kansur Developers India Pvt. Ltd. (ITAT Bangalore)

ITAT Bangalore held that provisions of section 68 of the Income Tax Act are not applicable to the remittance made in India by non-resident.

Facts-

Revenue has preferred the present appeal on the ground that CIT(A) erred in deleting ‘Addition u/ s 68 of the Income Tax Act,1961 amounting to Rs.4,07,88,170/ – without appreciating the fact that except for the identity, the assessee has not been able to establish the creditworthiness of the person advancing the loan and also the genuineness of the transaction.

Revenue has also raised the ground that CIT(A) erred in not appreciating that the said investor Shri Samyakant C Veera has invested of about 53.34 million US $ whereas his net income over a period of 6 proceedings years in US was only 3.3 million US$ as revealed from his tax returns filed with US Revenue authorities and hence his creditworthiness has not been proved.

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