Foreign bank account and unexplained payment additions deleted where trust ownership and declared family sources were established.

Additions for a foreign bank account balance and a payment of Rs. 57,00,000 were found unsustainable where the account was shown to belong to a family trust, the assessee was not established as the source of funds or a beneficial owner, and the Swiss authorities confirmed that neither the assessee nor his wife had beneficial interest in the accounts. The payment was also traced to declared sources under the family arrangement arising from the will and related fund flow. Following an earlier coordinate Bench ruling on identical facts, the additions were deleted for want of a factual basis.

---

---

Issues: Whether the additions made on account of the foreign bank account balance and the payment of Rs. 57,00,000 were sustainable in the assessee's hands.

Analysis: The appeal was decided by following the coordinate Bench's earlier decision on identical facts for a preceding assessment year. The material on record showed that the foreign account belonged to a family trust, the assessee was not shown as the source of the funds or as a beneficial owner, and the Swiss authorities had clarified that the assessee and his wife had no beneficial interest in the accounts. As to the payment of Rs. 57,00,000, the amount was traced to the assessee's declared sources in the family arrangement arising from the will and related fund flow. In both matters, the additions lacked a sustainable factual basis.

Conclusion: The additions were deleted and the issue was decided in favour of the assessee.

---