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of <h1>Tribunal rules in favor of assessee, directs deletion of Rs. 20,150 addition for remittances</h1> <h3>OAP ANDIAPPAN. Versus FIRST INCOME TAX OFFICER.</h3> OAP ANDIAPPAN. Versus FIRST INCOME TAX OFFICER. - TTJ 009, 486, Issues:1. Addition of Rs. 20,150 representing remittances from Ceylon by clandestine means.2. Justification for making the addition.3. Applicability of the ruling of the Madras High Court.4. Whether the investment made by the assessee is liable to be added as income from other sources.Detailed Analysis:1. The judgment involves the issue of adding Rs. 20,150 as income, representing remittances from Ceylon through clandestine means. Initially, the ITO added this amount, which was later set aside by the AAC. However, on further examination, the ITO reinstated the addition based on a direction from the IAC. The AAC upheld this decision, leading to the appeal before the Tribunal by the assessee.2. The justification for adding the amount was questioned by the assessee, who argued that there was enough foreign wealth to account for the remittances. The assessee had previously declared cash on hand under the head 'foreign wealth.' The counsel contended that the Madras High Court ruling cited by the Revenue did not apply to the current case, emphasizing the lack of justification for the addition.3. The Tribunal considered the rival submissions and evaluated whether the investment made by the assessee, amounting to Rs. 20,150, should be treated as income from other sources. The Tribunal noted that the Madras High Court ruling relied upon by the Revenue was distinguishable as the facts of the current case differed significantly. The High Court's decision in the cited case did not directly apply to the circumstances at hand.4. The Tribunal ultimately concluded that the addition of Rs. 20,150 should be deleted. It was established that the assessee possessed sufficient foreign wealth, and from the case's circumstances, it was plausible that the amount in question could have been remitted to India through legitimate means. Therefore, the Tribunal allowed the appeal, directing the deletion of the added sum from the assessee's income.
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