S. 68 : Cash credits-Sale of shares-Explained the nature and source-Investment and the transaction was part of a larger acquisition by KKR Group-Order of CIT(A) deleting the addition is affirmed. [S. 115BBE, 133(6)]
Assessee sold 22,62,512 equity shares of J.B. Chemicals and Pharmaceuticals Ltd. (JBCPL) to Tau Investment Holdings Pte. Ltd. for ₹168.55 crore. He claimed the transaction was genuine and supported by documentation, including regulatory approvals from SEBI and the Competition Commission of India. The Assessing Officer questioned the genuineness and creditworthiness of Tau Investment and made addition u/s 68 of the Act. CIT(A) deleted the addition. On appeal by Revenue the Tribunal held that the Tribunal agreed with the CIT(A) that the transaction was genuine which is supported by share purchase agreement, Letter of Offer to SEBI, and confirmation from Tau Investment and the transaction was part of a larger acquisition by KKR Group. The Tribunal rejected the Revenue’s arguments of inadequate evidence, noting that the AO did not pursue direct inquiries with Tau Investment despite being provided with contact details. Order of CIT(A) is affirmed. (ITA No. 1085/Mum/2024 dt. 13-1-2025)(AY. 2021-22)
ACIT v. Jay Bharat Mehta (Mum.)(Trib.) www.itatonline.org.
[Hon’ble Shri Rahul Chaudhary, JM and Hon’ble Shri Girish Agrawal, AM]