Usekiwi Infolabs Private Limited, Delhi ITO WARD - 27(2), New Delhi

This appeal concerns Usekiwi Infolabs Private Limited challenging an income tax addition of Rs. 1,67,50,000. This amount was received as share capital and premium from KStart LLC, Mauritius. The tax authorities considered this an unexplained credit under Section 68 of the Income Tax Act. Usekiwi Infolabs provided documentation to prove the investor's identity, creditworthiness, and the transaction's genuineness.

INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “G”: NEW DELHI
BEFORE SHRI H.S.SIDHU, JUDICIAL MEMBER
AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
(Through Video Conferencing)

ITA No. 8339/Del/2019
(Assessment Year: 201-17)

Usekiwi Infolabs Private Limited,
Block-B1/D4, Mohan Co-
Operative Estate, Mathura Road,
New Delhi
PAN: AABCU884G
(Appellant) 

Vs. 

ITO,
Ward-27(2),
New Delhi
(Respondent)

Assessee by : Shri Hiren Mehta, CA
Revenue by: Ms. Aman Preet, Sr. DR
Date of Hearing 02/11/2020
Date of pronouncement 07/12/2020

O R D E R

PER PRASHANT MAHARISHI, A. M.

1. This is an appeal filed by the assessee USEKIWI INFOLABS PVT LTD [ TheAssessee/ Appellant] against the order of the Commissioner of Income Tax(Appeals) – 9, , New Delhi [ld CIT(A)] dated 30.09.2019 for the AY 2016-17wherein the appeal of the assessee filed against the order passed u/s 143 (3)of The Income Tax Act (The Act) on 31/5/2019 by the income tax officerWard – 27 (2) New Delhi (The Learned AO) is dismissed. The only issue inthis appeal is the addition u/s 68 of The Income Tax Act of Rs.1,67,50,000/– received by the assessee as share capital and share premium from Messer’s KStart LLC, Mauritius.

2. The assessee has raised the following grounds of appeal:-

“1. That on the facts and circumstances of the case and in law, the orderpassed by CIT (A)-9, New Delhi (hereinafter referred to as CIT (A)), is contrary to the facts and bad in law.

2. That on the facts and circumstances of the case and in law the CIT (A) was not justified in sustaining the addition made by the A.O. of Rsof shares by appellant company by holding that the same is unexplained credit u/s 68 of the I T Act on the basis of surmises and conjectures.

2.1 The CIT-A has erred in not considering the submission of appellant which proves the identity, creditworthiness of the  investor and genuineness of the transaction. Documents include audited financial statements of Kstart LLC, Certificate ofIncorporation of Kstart LLC granted by ROC Mauritius, Bank Statement of Kstart LLC, Income Tax return filed with Mauritius Authority, List of directors for the financial year 2015-16.

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