2007 (7) TMI 650

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.... Tribunal is right in law in holding that the addition of Rs. 10 lakhs being the unexplained credit is not leviable?" The facts leading to the above substantial question of law are as under: The assessee is a person of Indian origin and is a citizen of Sri Lanka. The relevant assessment year is 2000-01 and the corresponding accounting year ended on March 31, 2000. The assessee filed his return of income on March 1, 2001, admitting a total income of Rs. 60,000 in the status of nonresident. The return was processed under section 143(1) of the Income-tax Act, 1961 ("the Act" in short), on September 24, 2001 and notice under section 143(2) of the Act was issued on the same day, and was served on the assessee on October 9, 2001. The assess....

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....ments dated April 7, 1998 and March 25, 1999, for a consideration of SLR 34 lakhs and SLR 85 lakhs respectively. In support of this claim, the assessee has produced documents before the Assessing Officer and also relied on the CBDT Circular No. 1527, dated September 12, 1983. In page 4 of the assessment order, the said CBDT circular is extracted, which reads as under: "2.15. It has been represented to the Board that in view of the difficulties being faced by the persons migrating from Sri Lanka to India due to recent disturbances in that country, it may not be possible for a migrant from that country to lead the evidence necessary to prove his/her claim that a particular sum of money or personal jewellery, etc., has been brought over by ....

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....n overall ceiling of Rs. 2 Lakhs in respect of all sums brought over from Sri Lanka and introduced in the account books by the assessee and all members of his family taken together." The scope of the above circular has been considered by the first appellate authority as well as the Tribunal and they have came to the conclusion that the assessee has sufficient sources in Sri Lanka. The Tribunal, in paragraph 3 of its order, held as follows: "We have heard the rival submissions and perused the material on record. It is an admitted fact that the assessee has produced documents relating to sale of property. From this, it is evident that the assessee has got a consideration of SLR 35 lakhs and SLR 85 lakhs for the two properties stated in ....