Pradeep Wig Vs ACIT (ITAT Delhi)
ITAT Delhi held that assessee, being the registered shareholder of the company, acquired those shares by remitting his own declared sources money through the permitted LRS form India. Further, assessee was not beneficial owner of any property of asset of the company hence no income was assessable in the hands of assessee.
Facts- The case of revenue is that as per the information available with the revenue before the date of search on 02/03/2017, Shri Pradeep Wig, Ms. Neera Wig, Ms. Sonu Wig, Ms. Neela Kothari and Ms. Gauri Wig were shareholders of Carmichael Capital Limited (hereinafter referred to as CCL), a British Virgin Island (BVI) registered on 09/03/2005, as per certificate of its incorporation placed at PB page no. 1 Vol. No. 1. The assessee Pradeep Wig and Mrs. Neera Wig, and their 3 daughters including assessee Ms. Sonu Wig, held equal shares of 20% each in CCL. The Revenue alleges that the appellants/assessee got the said company CCL incorporated only for the purpose acquiring properties in UK by which he could avoid declaration of the ownership in the properties in India. The AO has stated that since the appellants/assessee were willing to avoid payment of income-tax under Indian Income Tax Act, provisions on the said properties, this route of incorporating an overseas company was implemented.
