February 2019

Section 69 r.w.s.5 & 6 –Where additions were made to income of assessee, who was a non-resident since 25 years, 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, impugned additions were unjustified.

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

29.  [2019] 197 TTJ 161 (Mumbai – Trib.) DCIT (IT) vs. Hemant Mansukhlal Pandya ITA No.: 4679 & 4680/Mum/2016 A.Y: 2006-07 & 2007-08 Dated: 16th November, 2018

                                   

Section 69 r.w.s.5 & 6 –Where additions were made to income of assessee, who was a non-resident since 25 years, 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, impugned additions were unjustified.

 

FACTS


The assessee was a non-resident individual living in Japan on a business visa since 1990. He had been a director in a company in Japan and had got permanent residency certificate from Japan since 2001. The assessing officer had made addition towards amount found credited in HSBC Bank account, Geneva on the ground that the assessee had failed to explain and prove that deposit was not having any connection to income derived in India and not sourced from India. The Assessing Officer had made additions on the basis of a document called 'base note' received from French Government, as per which the assessee was maintaining a bank account in HSBC Bank, Geneva. Except this, the Assessing Officer had not conducted any independent enquiry or applied his mind before coming to the conclusion that whether the information contained in base note was verified or authenticated.


Aggrieved by the assessment order, the assessee preferred an appeal to the CIT(A). The CIT(A) deleted the addition of income as made by the Assessing Officer. Being aggrieved by the CIT(A) order, the Revenue filed an appeal before the Tribunal.

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