TaxTMI 
TaxTMI 
2019 (4) TMI 2003
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....actured data with some malafide intention, and has ignored the fact that the assessee did not give any evidence/proof in this regard. 3. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A)has erred by ignoring the decision of the Hon'ble Bombay High Court in Writ Petition (L) No. 3172 of 2015 in the case of Soignee R. Kothari Vs. DCIT, Central Circle-8(3), Mumbai wherein it was held that "In the normal course of human conduct if a person has nothing to hide and serious allegations/questions are being raised about the funds a person would make available the documents which would put to rest all questions which seem to arise in the mind of the Authorities. The conduct on the part of the Petitioner and her uncle, in not being forthcoming, to our mind leads us to the conclusion that this is not a fit case where we should exercise our extra ordinary writ jurisdiction and/or interfere with the order passed by the authorities under the Act. If a person has nothing to hide, we believe the person would have co-operated in obtaining the Bank Statements. " Which squarely applies to the present case of the assessee. 4. The Ld. CIT(A) has a....
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....were passed on to the AO. The AO after receiving the informations from DIT(Inv.) 2, Mumbai issued notice under section 148 of the Act dated 12.03.2015 after obtaining the approval from the Joint CIT, Mumbai after recording reasons to believe that income of the assessee to the tune of amount appearing in the said bank account has escaped assessment. Accordingly, notice under section 148 of the Act was issued to the assessee. The assessee is a non resident in India. The assessee during the assessment proceedings submitted that assessment for the instant year has become barred by limitation under section 149(1) of the Act and provisions of section 149(1)(c) do not apply to the assessee as he is a non resident for the last 40 years and submitted the various documents as desired by the AO such as copy of the passport, copy of bank account of HSBC, Geneva, proof of not having any taxable income in India, address of the assessee in India etc. However, the AO did not find the reply of the assessee as acceptable and came to the conclusion that assessee has not filed any proofs of money deposits in her foreign account with HSBC Private Bank, (Suisse) SA, Geneva and the assessee has fail....
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....t of the aforesaid three FD account are enclosed ax Annexure A. Further, copies of confirmation of fixed deposits issued by ANZ Grindlays Bank, Jersey are also enclosed as Annexure B. 5.4 The appellant, as stated above, is non-resident and it is only her income which is received or accrued or arising in India which can be brought to tax under the I. T. Act. It is submitted that the appellant has neither earned nor has any income or income arisen or accrued to her in India. The source of deposits made in the HSBC account constitutes on maturity of redemption of various FDs narrated above, further, the appellant was not allowed to carry on any business in Muscat as per law prevailing there. On the other hand, it is for the learned Assessing Officer to establish that any income had. in fuel. accrued or arisen to the appellant in India. The appellant submits that she has no source of income, directly or indirectly, through or from (a) business connection in India, (b) property, asset, or source of income in India, (c) transfer of capital asset situated in India. Therefore, the question of any income deemed to accrue or arise in India to the appellant in terms of the provisions....
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....ived from the Government sources. First notice under section 148 of l.T.Act, 1961 was issued on 18/3/2015 and 142(1) notice requisitioning details and documents on 27/3/2015(Friday) calling for details on 30/3/2015 [Monday) and assessee and its CAs tried to comply with the notices despite the assessee being a non-resident and yet compliance was made by the CA to the best level. And the assessment order was finalised on 31/3/2015 on total income of Rs. 2(33,92,362/-. Thus assessee did not have sufficient opportunities to explain her case to the AO. Therefore, sufficient opportunities were given to the assessee's CA to submit details and documents and explain the case and therefore facts of the case were examined vis-a-vis these details and documents. 2.5: Prima facie it emerges from the details available on record that the assessee was a non-resident and was living in Muscat during previous year relevant to A.Y. 2006-07, and the source of the deposits of US Dollars 528880 in the HSBC Private Bank during previous year relevant to A.Y.2006-07 was the inheritance of the moveable and immoveable assets of Mr.Narendra Khimji Bhatia who expired on 15/7/1988 at Houston, USA and....
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....erred to HSBC Private Bank (Suisse) SA C. 29th November 2004 USD 448,974.55 transferred to HSBC Private Bank (Suisse) SA Prima facie the deposit of funds of US Dollars 528880 and/or even US Dollars 704220 as per the affidavit and records is not at all relatable to any source of business and/or assets in India and hence these deposits and any income thereon did not accrue and/or arise in India. As such these deposits were relatable to a source of deposits in Muscat and elsewhere. The details of the bank deposits are as under: Fixed deposit No. Date of deposit Last Dale of maturity Maturity Amount 1229187-102 18.1.1990 15.9.2004 USD87,094.50 1229187-101 3.1.1990 30.9.2004 USD 1,68,224. 23 1229187-103 29.12.1989 29 11.2004 USD 4,48,901. 55 Total USD 7,04,220.28 2.8 There is another aspect of the matter from which the AO has drawn adverse conclusions. Assessee is an Indian Passport Holder and has given her address on the passport as 16 Dev Darshan, 50, Ridge Road, Walkeshwar, Mumbai, M.S. Here also the AO has drawn adverse conclusions because he was in a hurry to pass assessment order. Just beca....
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....dlays Bank was changed to Standard Chartered Bank from ^000 onwards as per the information available on internet. 2.9 In nutshell, assessee's ground of appeals Nos,4 & 5 are allowed and the entire addition of Rs. 2,33,92,363/- is deleted subject to verification of details as mentioned above" 7. The Ld. D.R. vehemently submitted before us that assessee has deposited money into foreign bank account in A.Y. 2006-07 source of which was not explained by the assessee, neither any disclosure was made to the Indian Income Tax Authorities. It came to be known only when the Government of India received information from French Government under DTAA in exercise of its sovereign powers that assessee was having account with foreign bank with HSBC Private Bank, (Suisse) SA, Geneva which was not disclosed to the Income Tax Department, Govt. of India. Thus, the Ld. D.R. relied heavily on the order of AO by submitting that the assessee was having deposits in the HSBC Private Bank, (Suisse) SA, Geneva which would not have been revealed if the Government of India have not received information under DTAA from the French Government and therefore the same was rightly treated as undisclose....
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.... given hereinabove and finally Ld. CIT(A) allowed the appeal of the assessee subject to verification of these documents by the AO. The Ld. A.R. therefore submitted that since the AO has been provided opportunity to verify these documents and if anything wrong is found AO would have taken decision accordingly but in the present case nothing of the sort has happened. The Ld. A.R. therefore submitted that the order of Ld. CIT(A) may kindly be affirmed as being reasoned and as per law. 9. After hearing both the parties and perusing the material on record, we observe that in this case the bone of contention was the source of deposits in HSBC Private Bank, (Suisse) SA, Geneva to the tune of 2,33,92,363/- the peak balance in financial year relevant to A.Y. 2006-07. We find merit in the contentions of the Ld. A.R. that the source of deposit was out of the funds held by the assessee's husband in Muscat and other countries as assessee's husband was engaged in the business of construction and builders abroad. The assessee received this money by way of inheritance on the death of her husband in 1988 who expired on 15.07.1988. We further find that the Ld. CIT(A) has allowed the appeal of the....