TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 272
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....e circumstances of the case and in law, the learned CIT(A) has erred in law and on facts in deleting the addition of Rs. 75,59,668 made under section 69 of the Income Tax Act, being unexplained investment in the bank account". 3. The issue in appeal lies in a rather narrow compass of material facts. The assessee before us, a Kenyan national, is a non-resident Indian. During the course of her assessment proceedings, the Assessing Officer noticed that she is maintaining a bank account with Bank of Baroda, Ahmedabad, This account showed a credit entry of Rs. 75,59,668 on 9th April 2007 and all that its narration in the account stated was "Bill ID 0849IRTT0062707". A little probe by the Assessing Officer revealed that this credit represented r....
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....nancial year immediately preceding the assessment year the assessee has made investments which are not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of the investments or the explanation offered by him is not, in the opinion of the Assessing Officer satisfactory, the value of the investments may be deemed to be the income of the assessee of such financial year." 4.2 It is pertinent to mention that, the assessee has not filed return of income u/s.139(1) of the Act for the assessment year under consideration. Therefore, the sources of funds used for deposits/credit entry in the above referred Bank account themselves appear to be doubt....
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....s about the creation of the Kanisa Family Trust the contents of the letter received from the above Bank were to be examined by the AO at his end. Therefore, Remand Report was called for. 9.1 Admittedly, the appellant was a non-resident of India residing in Kenya since her marriage in 1978. The parents of the appellant were also resident of the U.K. at the particular point of time when the Kanisa Family Trust was created. The Trust was created on 18.10.1974 and Shri Chaturbhai Ashabhai Patel was a settler of the Trust The sole Trustee of the Trust was Barclays Pvt. Bank and Tmst Ltd. As observed from the copy of the submission of the appellant made before the AO, the assessee was receiving remittance from the Barclays Bank, U.K. in the ea....
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....supra) have been gone through and it was observed that the same were applicable to the facts of the case under consideration. The Hon'ble ITAT relied on the CBDT Circular dated 20.2.1969 wherein CBDT had observed that "Money brought into India by nonresidents for investment or other purposes is not liable to Indian income-tax. Therefore, there is no question of a remittance into the country being subjected to income-tax. The question of assessment of tax arises only when there is no evidence to show that the amount, in question, in fact represents such remittance". The ratio as laid down by the ITAT to the effect that in the case of remittances by banking channel, the onus on the assessee under section 69 stands discharged, appears to b....
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....rom a foreign bank, on account of disbursements from a family trust, and there is no dispute about these factual aspect. The investment is thus reasonably explained and the application of Section 69 is out of question. We, therefore, approve the conclusions arrived at by the CIT(A) for this short reason alone. 8. We may, however, add that this case should not be treated as an authority for concluding that a disbursement from overseas trust, particularly when it has income component, will not be taxable when received in India. That question remains open for adjudication in an appropriate case. The facts in this case are rather peculiar. The taxability of disbursement per se was not at all examined by the authorities below, nor was such a di....