January 2019

Section 68 Additions made to income of assessee, who was a non-resident since 25 years, were unjustified since no material was brought on record to show that funds were diverted by assessee from India to source deposits found in foreign bank account.

Jagdish T. Punjabi / Devendra Jain / Tejaswini Ghag
Chartered Accountants

20.  [2018] 100 taxmann.com 280 (Mumbai-Trib) DCIT(IT) vs. Hemant Mansukhlal Pandya ITA Nos.: 4679 & 4680 (Mum) of 2016  and C.O. 58 & 159 of 2018 A.Y.s: 2006-07 & 2007-08 Dated: 16th November, 2018

 

Section 68 Additions made to income of assessee, who was a non-resident since 25 years, were unjustified since no material was brought on record to show that funds were diverted by assessee from India to source deposits found in foreign bank account.

 

FACTS


The assessee, a non-resident since financial year 1995-96, is a director in a company in Japan and living in Japan on business visa since 1990.  He got permanent residency certificate from Japan in 2001.  The assessee has filed his return of income for AY 2006-07 declaring total income of Rs. 5,51,667.  Subsequent to processing of the return, the assessment was reopened u/s. 147 of the Act for the reasons recorded as per which information was received by Government of India from the French Government under DTAA that some Indian nationals and residents have foreign bank accounts in HSBC Private Bank (Swisse SA, Geneva) which were undisclosed to the Indian Income-tax department. This information was received in the form of a document (hereinafter referred to as 'base note') was processed with that of the assessee's Indian income-tax return and found that the details contained in base note were matching with the information provided by the assessee in his income-tax return. Accordingly, the DDIT(Inv), Unit VII(4), Mumbai sent information to the concerned AO for further action. The AO, after r

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