TaxTMI 
TaxTMI 
TaxTMI 
2020 (7) TMI 69
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....xplanation of the assessee as to the source of deposit on surmises and conjectures." 2. The ld AR submitted that the assessee is a non-resident. He is employed with United Nations Organization at Democratic Republic of Congo, South Africa since 15th July, 2007. His gross annual salary for the year under consideration was USD 1,14,941/- apart from other allowances. The salary so received from United Nations is exempt from taxation as per section 18(b) of the convention on privileges and immunities of the United Nations. The assessee regularly filed the return of income declaring saving bank and FDR interest even though his income is below taxable limit. For the year under consideration, he filed the return of income declaring gross total in....
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....tted that there is no dispute as to the fact that the assessee brought to India USD 21500 with him when he came on 22.05.2015. This was declared by him before the custom authorities at IGI airport, New Delhi. These dollars were exchanged by him in Indian Rupee through staff of Thomas Cook, authorized money exchanger, and out of the same Rs. 8 lakhs was deposited by him in his NRO Account on 27.05.2015. Thus, the source of deposit is fully explained as intimated to the Assessing officer in assessment proceedings vide letter dated 11.12.2018. Only because the assessee has not kept the receipt for converting USD into Indian rupee would not mean that the amount deposited in the bank account is unexplained income by ignoring the various other e....
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....n offered by the assessee is not satisfactory considering the facts and circumstances of the case and in support, reliance was placed on the decision of the Hon'ble Supreme Court in case of CIT vs. Smt. P. K. Noorjahan 237 ITR 570. 6. Per contra, the ld DR submitted that the assessee has failed to submit primary evidence in support of his explanation that the money so deposited in his bank account is out of the foreign exchange brought-in by him in the Country and exchanged with Indian Rupees and in absence of such evidence and establishing the necessary nexus, the Assessing officer has judiciously invoked the provisions of section 69 of the Act. It was further submitted that the ld CIT(A) has rightly appreciated the facts of the case and ....
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....misused for deposits of unexplained cash by their known ones. Therefore, I find force in the order of the AO to hold the cash deposited in the bank account as unexplained income. Hence, the ground of appeal is dismissed." 7. We have heard the rival contentions and perused the material available on record. The limited issue under consideration is whether the assessee has provided reasonable explanation explaining the source and nature of cash deposit of Rs. 9 lacs in his NRO account maintained with ICICI Bank and where the answer is not in the affirmative, whether the Assessing officer is correct in invoking the provisions of section 69 and bringing such receipts to tax in the hands of the assessee for the impugned assessment year. The reas....
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....hat source of such foreign exchange is the salary income from United Nations and funds in his NRE account. Where the source of such foreign currency and the fact of bringing such foreign currency in the country has not been disputed by the Revenue, the explanation of the assessee that out of such funds, he has deposited Rs. 8 lacs in his NRO bank account within a period of few days is a plausible explanation in terms of source, quantum and timing perspective. Secondly, where such salary income and interest on NRE account are exempt from tax in India at first place, a position which has been accepted by the Revenue and thus, not in dispute, then in such a scenario, subsequent deposit of the same or a part thereof in his NRO account maintaine....