TaxTMI 
TaxTMI 
TaxTMI 
2022 (3) TMI 664
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....ndicating nexus and control over the funds by the assessee." 3. "On facts and in circumstances of the case, the Ld. CIT(A) has erred in not calling for the "Contractual Documentation", under Rule 46A(4),that has been referred to by HSBC, Geneva, whereby, one Iraqi national has been stated as the Sole Beneficiary of Blueridge Investment Corporation." 3. Brief facts of the case are that in this case in assessment order, AO observed regarding information received by Government of India from the French Government under DTAA in exercise of its sovereign powers that some Indian nationals and residents have Foreign Bank Accounts in HSBC Private Bank (Suisse) SA, Geneva which were undisclosed to the Indian Taxation Department. That this information was received in the form of a document (herein after referred to as "Base Note") wherein various details of account holders such as Name, Date of Birth, Place of Birth, Sex, Residential Address, Profession, Nationality along with the date of opening of the bank account in HSBC Private Bank (Suisse) SA, Geneva and balance in certain years etc are mentioned. That in the case of the assessee also, a Base Note was received from the office of the....
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....as Singh Pole, Jodhpur is a house where his mother and brother are staying. 6. However, AO was not satisfied, he summarized the assessees response as under:- "In reply to this, die assesses in his submission dt. 4.3.15 received on 9.3.15 stated that he is a non-resident u/s 6 of the Act. He contends that as per Section 5 of the Act the income that accrues or arises outside India does not form part of his total income as per the Act and that the transactions with HSBC, Geneva are not covered by the provisions of Sec. 9 of the Act as they are made out of the funds transferred from HSBC, Abu Dhabi. With regard to the account in the name of Blue Ridge Investment Corporation, the assessee submitted that the Corporation being a foreign company has no obligation to provide any information about the company to Indian tax authorities. Also, it is stated that he is just a joint - signatory to the bank account and he cannot operate it on his own. He submitted that he is under no obligation to provide the information about the company. Further, no evidence was produced to show the source of deposit made in the other account in HSBC, Geneva jointly held by him and his brother. He confirm....
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.... in order to find out the demat accounts held by the assessee as well as the shares held by him. In response, NSDL vide their letter dt. 18.3.15 has reported the following demat accounts in the name of the assessee: S.NO Client ID No scripts held Total number of shares held various scripts I 10112794 68 6,26,459 2 10009144 9 20,501 3 10009185 4 15,061 4 10009194 3 47,792 5 10011044 1 300 TOTAL 85 7,10,113 This means that the assessee does have his interests in India. Considering this, there is a strong presumption that die deposits made in the HSBC, Geneva account have their sources in India. The assessee cannot hide behind his status as a nonresident to free himself from producing the relevant material evidences that are in his possession or in his capacity to produce to prove that the deposits made in the HSBC, Geneva as contained in the base note is not hit by the provisions of Section 5(2) and Section 9 of the Act. (e) The assessee chose not to disclose with material evidence the sources of deposits in the HSBC, Geneva. It is in the public domain that HSBC, Geneva has been inquired regarding its role in facilitating its....
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....nce in account of M/s Blueridge investment Corporation. The other account was not in operation in this A.Y. The matters concerning deposit and balance in bank account in HSBC, Geneva in name of Blueridge Investment Corporation (Relationship no. 4029263) and joint account of appellant with Shri Devendra Singhvi (Relationship no. 4495795) was considered and decided in appellate order dated 12.11.2018 for AY 2006-07 in favour of assessee. Facts and circumstances remaining same, on account of same reasons, same decision applies. 10. Against the above order, assessee is in appeal before us. 11. At the outset, ld. Counsel of the assessee submitted that facts are identical to the one for AY 2006-07 in assessees own case, wherein ld.CIT(A) decided the issue in favour of the assessee and ITAT has confirmed the same. Hence, she submitted that the issue is covered in favour of the assessee. 12. Per contra, Ld. DR relied upon orders of the AO. However, we did not dispute the proposition that ITAT in assessees own case on same facts and decided the issue in favour of the assessee in the previous assessment year. 13. We have carefully heard both the parties and perused the records. We find....
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....avings made by the respondent assessee during his stay in Abu Dhabi, UAE as a non-resident Indian since 1976. The funds transferred from HSBC Abu Dhabi according to the respondent assessee to HSBC, Geneva had no source or income accruing or arising from India. The DDIT (Inv.) Unit-III, Mumbai investigated the account with HSBC, Geneva by issuing summons u/s.131 of the Act dated 9.12.2011 and the detailed submissions in reply were made vide letters dated 16.12.2011, 21.12.2011 and 29.12.2011 before the DDIT (Inv.).Thereafter, the assessment was reopened u/s 147 of the Act vide notice u/s 148 of the Act dated 31.10.2014 after recording reasons to believe u/s 148(2) of the Act which were duly supplied to the assessee with notice u/s 148 of the Act. The AO noted in the reasons to believe that information had been received pertaining to respondent assessee having a bank account in HSBC Bank, Geneva bearing number BUP_SIFIC_PER_ID-5090154065 and the peak balance in such account was USD 1,194,388. The AO also supplied a copy of base note received from French Authorities under Indo-French Fiscal Treaty to the respondent assessee. As per base note copy of which is filed at Pg. 185to 189 of ....
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....ional and that the respondent is a treasurer and director of the company and he is neither a shareholder nor having any beneficial interest in the company and he is only a joint signatory of the bank account of the company along with other director. The respondent assessee also filed before the AO the credit advices received from HSBC Geneva in respect of Funds transferred to his account from HSBC Abu Dhabi. Finally, the assessment was framed u/s 143(3) r.w.s. 147 of the Act vide order dated 25.03.2015 by making an addition of Rs. 5,30,92,953/- to the income of the assessee equal to peak balance in both the bank accounts. 4. The aggrieved assessee filed an appeal before the ld. CIT(A) and some additional evidences were also filed before ld CIT(A) which are placed at page nos. 257-335 of the paper book. The ld CIT(A) forwarded the additional evidences to the AO and directed to file a remand report . The AO submitted remand report to the Ld. CIT(A). The Ld. CIT(A) after considering the facts and the remand report admitted the additional evidence under Rule 46A held that in order to assess the asset/bank account held by a third party in the hands of the respondent assessee the depar....
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....r 2005. The m ld DR submitted that is a secret and clandestine process of quietly parking the money in the foreign countries thereby circumventing the lawfully due taxes. The Ld. D.R. submitted that in first account bearing number 5094029263 in the name of Blueridge Investment Corporation which was incorporated in Liberia having a peak balance of USD 1,184,851 in February 2006, the assessee was one of the signatory with director of the corporation though the assessee is not added a beneficiary. The ld DR stressed the importance that if the assessee is not having any interest in the corporation why he is one of the two signatory in the bank account. The ld Dr further argued that in the other account bearing no 5094495795, he was joint holder with his brother Devendra Singhvi having a peak balance of USD 9,537 in November 2005. The Ld. D.R. submits that had the assessee signed the consent waiver form, the Revenue Authority could have found out the truth behind the curtain. The Ld. D.R. finally submitted that the whole modus operandi which is adopted by the assessee to park the black money is so complex and intricate and also the fact that the assets are in foreign country, it is very....
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.... Corporation or the bank account held by the company held with HSBC Geneva. The ld AR strongly submitted that the respondent has no beneficial interest in the company Blueridge Investment Corporation and the sources of credit in his bank account with HSBC Geneva are from his bank account with HSBC Abu Dhabi. As regards the other account bearing no 5094495795 was in the joint names of the respondent assessee and his brother Devendra Singhvi having a peak balance of USD 9,537 in November 2005, the ld AR submitted that the respondent assessee had opened a joint account along with his brother in HSBC Geneva in 1998 and had transferred funds since 1998 to this account from his other account in HSBC Abu Dhabi, UAE. The source of the funds transferred from HSBC Abu Dhabi, UAE were stated to be out of the income earned in Abu Dhabi and savings made by the respondent assessee during his stay in Abu Dhabi, UAE as a non-resident Indian since 1976.The ld AR argued that the revenue has failed to bring any independent evidences on records to controvert the facts and evidences as placed by the assessee before the authorities below. Besides the assessee is non resident during the year the ld CIT(A....
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....essee has bank accounts in HSBC Geneva. The respondent assessee had opened a joint account along with his brother in HSBC Geneva in 1998 and had transferred funds since 1998 to this account from his other account in HSBC Abu Dhabi, UAE. The source of the funds transferred from HSBC Abu Dhabi, UAE were stated to be out of the income earned in Abu Dhabi and savings made by the respondent assessee during his stay in Abu Dhabi, UAE as a non-resident Indian since 1976. The funds transferred from HSBC Abu Dhabi according to the respondent assessee to HSBC, Geneva had no source or income accruing or arising from India. The DDIT (Inv.) Unit- III, Mumbai investigated the account with HSBC, Geneva by issuing summons u/s.131 of the Act dated 9.12.2011 and the detailed submissions in reply were made vide letters dated 16.12.2011, 21.12.2011 and 29.12.2011 before the DDIT (Inv.).Thereafter, the assessment was reopened u/s 147 of the Act vide notice u/s 148 of the Act dated 31.10.2014 after recording reasons to believe u/s 148(2) of the Act which were duly supplied to the assessee with notice u/s 148 of the Act. The AO noted in the reasons to believe that information had been received pertaining....
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....efore AO an affidavit duly sworn in before the Assistant Consular Officer Embassy of India Abu Dhabi a copy of which is filed at Pg. no. 201-202 of the paper book , letter dated 04/12/2014 of Blueridge Investment Corporation at Pg. no. 197 certifying that the company is a Tax resident of Liberia with sole beneficial owner is Mr. Nazar Khan who is an Iraqi National and that the respondent is a treasurer and director of the company and he is neither a shareholder nor having any beneficial interest in the company and he is only a joint signatory of the bank account of the company along with other director. The respondent assessee also filed before the AO the credit advices received from HSBC Geneva in respect of Funds transferred to his account from HSBC Abu Dhabi. Finally, the assessment was framed u/s 143(3) r.w.s. 147 of the Act vide order dated 25.03.2015 by making an addition of Rs. 5,30,92,953/- to the income of the assessee equal to peak balance in both the bank accounts. Ld CIT(A) after admitting the additional evidences and after considering remand report of the AOI on the additional evidences held that in order to assess the asset/bank account held by a third party in the ha....