TaxTMI 
TaxTMI 
2014 (8) TMI 306
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....e bank accounts stated to be in the names of relatives. 2. Facts in brief as emerged from the orders of AO passed u/s.153A r.w.s. 143(3) all dated 29.12.2008 were that a search u/s.132 was carried out in the group cases known as "Dosani Group" on 4th August, 2006. The nature of business was coal trading and the assessee in individual capacity was having share income from the partnership firm. During the course of search at the business premises of M/s. Black Diamond Trading Co. certain bank pass-books and cheque books were found and seized. A statement of one of the partner, namely, Mohammad Tohsin Dosani was recorded wherein he has stated that those bank accounts belonged to their patrons who were stated to be based in foreign countries....
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....he related bank account(s). They had given their passbooks / cheque books to the appellant / his brother for safe keeping and to issue cheques, mostly for charity in India and for their personal use at the time of their annual visit to India. The bank accounts were opened by these individuals only and were operated under their signatures. No power of attorney had been given to the appellant / his brother. The AO had not issued any show cause notice before making the additions, else these facts could have been appraised to / ascertained by him. The appellant and his brother had no connection with the funds in bank accounts and only issued their cheques, already pre-signed by them, on their instructions. It is evident also that all these bank....
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....hich specify that these were NRO/NRE accounts and have also detailed the nature / source of the deposits therein. It is also certified that the deposits in these accounts can be made by foreign remittances / drafts. Shri Mohd. Mohsin in his statement u/s. 132(4) had also given details and the reason for the possession of bank passbooks / cheque books. The AO has not brought any evidence on record to the contrary and to refute the explanation / details, as reproduced in para - 5 & 7 of this order. The remark of the AO that the assessee was manipulating bank accounts of his "poor and gullible relatives" is therefore a conjecture. Additions made on such issues have no sanctity / basis and cannot be sustained. These additions are therefore be d....
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....ounts and that those bank accounts belonged to all those persons in whose names the bank accounts have been opened. The funds in those accounts were for charity purpose only, he had stated. The argument of learned AR was that a statement recorded u/s.132(4) is held by various courts as true and correct. Further, he has contended that in an NRE account no Indian rupee can be credited but only foreign currency can be deposited, therefore, the amounts deposited belonged to those persons and not to the assessee. Therefore, no power of attorney in the name of the assessee was found so as to presume that the account holders were the benami holders of the assessee. 8. We have heard both the sides at some length. We have carefully perused the or....