TaxTMI 
TaxTMI 
2006 (8) TMI 129
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.... filed by the assessee along with his return found that there was a credit entry of Rs. 2,55,000 made on February 1, 1992, in the savings bank account of the assessee. The assessee was asked to explain the nature and the source of the receipt. In response, he filed a declaration under the Remittance in Foreign Exchange (Immunities) Scheme, 1991 to claim that this amount was received by debit to an NRE account. It was not clear from the certificate issued by the bank as to whom the account belonged. To verify the genuineness of the declaration, a reference was made to the State Bank of India, Race Course Road, Bangalore, (for short "the SBI"). From the response of the State Bank of India, it transpired that the declaration was not correct si....
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.... a copy of the letter of the Chief Manager, State Bank of India in which he stated that the funds deposited into the account of Arun L came from a resident depositor's account and not from any NRE account. In compliance with the earlier order of the Tribunal, the Assessing Officer required the assessee to explain the nature, source and genuineness of the deposit and also to substantiate the same by proving the identity of Arun L. He was also asked to provide the present address of Arun L. In response thereto the assessee raised several contentions and stated that the onus to prove that the deposit was a genuine NRE gift was not on the assessee, and that it was for the Assessing Officer to prove that the said deposit came from a resident's a....
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....issued in various names including the one in the name of the assessee. The Tribunal also noticed that upon verification the Assessing Officer had found the particulars of the address of Arun L to be incorrect. Despite yet another opportunity the assessee had failed to produce Arun L and to explain the creditworthiness of Arun L and the genuineness of the transaction. He was also asked to provide the present address of Arun L, which too he could not provide. The Tribunal also noted that the assessee had conceded before the Settlement Commission that the immunity declaration given by him was false. The Tribunal also found that the assessee was prolonging the assessment proceedings by taking untenable pleas without discharging the burden place....
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....ITR 98 (Delhi) the Full Bench observed as follows: "As we read section 68 it appears that whenever a sum is found credited in the books of account of the assessee then, irrespective of the colour or the nature of the sum received which is sought to be given by the assessee, the Income-tax Officer has the jurisdiction to enquire from the assessee the nature and source of the said amount. When an explanation in regard thereto is given by the assessee then, it is for the Income-tax Officer to be satisfied whether the said explanation is correct or not. It is in this regard that enquiries are usually made in order to find out as to whether, firstly the persons from whom money is alleged to have been received actually existed or not. Secondly....
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....arrel with the proposition that a mere identification of the donor and showing the movement of the gift amount through banking channels is not sufficient to prove the genuineness of the gift and since the claim of a gift is made by the assessee the onus lies on him not only to establish the identity of the donor but his capacity to make such a gift." In Prem Nath Goel and Co. v. CIT [2004] 271 ITR 390, this court held as follows: "Section 68 of the Act requires an assessee to prove the credits appearing in his books of account, as to the nature and source of such amounts, so that if the explanation furnished is not satisfactory, the Assessing Officer can treat it as the assessee's income. The assessee is required to prove three import....
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....een deposited in the said account to the tune of Rs. 25 lakhs and withdrawn by way of demand drafts including the one in the name of the assessee on the day of closure of account. It is clear from the aforesaid that the authorities had clearly nailed the lie of the assessee in the present case. We find no force in the submission of the assessee that he had not been treated fairly since the Chief Manager, State Bank of India was not produced for cross examination, and, therefore, the communication sent by him cannot be relied upon. As noticed by the Commissioner of Income-tax (Appeals) and the Tribunal, the assessee had himself conceded before the Settlement Commission that the declaration made by him under the Foreign Exchange (Immunitie....