AI Drafter 
TaxTMI 
TaxTMI 
2025 (11) TMI 1129
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.... did not belong to appellant. 3. The learned CIT(A) has come to the erroneous conclusion that though the bank account with HSBC Private Bank, Geneva is not the account of the appellant but the money in that account is of the appellant without any cogent evidence and based only on conjectures and surmises. 4. The learned CIT(A) has mixed up three different entities to arrive at the erroneous conclusion, viz. Chhaganlal Suchak Family Trust's beneficiaries, legatees of the estate of late ChhaganlalSuchak who got legacy on maturity of Resurgent India Bonds (RIB) and SCS Family Trust in Singapore. 5. The learned CIT(A) erred in relying on unsigned, unauthenticated stolen data and ignoring the authentic credible data in the form of notification dated 23rd March 2015 of Swiss Federal Tax Administration FTA. 6. The learned CIT(A) erred in stating that it was not necessary to provide an opportunity to the appellant to cross examine the source of the statement/information relied upon for making huge addition. 7. The learned CIT(A) has erred in referring to papers and matters which have no connection with the appellant's case for A.Y. 2007-08. ....
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....) and also various materials referred to at the time of hearing. By and large, we have captured all the relevant observations of the ld. AO and ld. CIT (A) which was incorporated in the tabular form in paragraph 13 wherein assessee has given his reply / rebuttal qua each of the observations. 22. The core issue involved here is, whether the addition of Rs. 10,50,41,824/- being the peak amount standing for F.Y. 2005- 06 of USD 2361551.79 in the bank account belonging to ChagganlalSuchak Family Trust (CSFT) in the various bank accounts of HSBC Bank, Geneva can be added in the hands of the assessee. The entire thrust of the department has been that; firstly, there were certain seized documents from the possession of the assessee during the search that assessee was managing the affairs of the trust and was one of the trustees in CSFT. Secondly, the trust was found in Mumbai wherein assessee and his wife were mentioned as trustees. Thirdly, certain transactions were undertaken in the said bank account under the instructions of the assessee and in the 'base note', the bank accounts have been mentioned in the name of the assessee as the trustees of ChagganlalSuchak Family Trust. ....
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....stributed to the beneficiaries to all non-Indian resident beneficiaries residing outside India on 08/08/2011. The sources of funds have been clearly detailed in para 4. The relevant documents have also been placed in the paper book from pages 92-130. From perusal of the documents and material on record, it is quite evident that, firstly, neither assessee nor his wife Mrs. Indira D Thakkar was part of the list of beneficiaries in the trust. Secondly, the source of funds also came through inheritance of Mr. ChagganlalSuchak who was a UK Citizen (non-resident Indian) settled in UK till his death in June 1999. The main trustees of the trust as well as the beneficiaries were all foreign citizens. Late Shri ChagganlalSuchak and his wife Mrs. KantebenChagganlalSuchak had one daughter Mrs. Indira Thakkar who was married to assessee are only Indian citizens and their three sons Mr. SirishSuchak, SuryakantSuchak and MadhuSuchak are all settled abroad and are citizens of UK and Canada. There is no dispute of these facts. 25. From the 'Base Note' forwarded by the Investigation wing, it has been informed that in ChagganlalSuchak Family Trust which had bank accounts in HSBC Bank, Geneva....
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.... other facts and material on record that neither the source of the funds nor the ultimately destination of the fund has any direct or indirect link with the assessee. In none of the material found from the possession of the assessee which has been referred extensively by the ld. AO and ld. CIT (A) in their respective orders, there is any evidence that assessee had made investment through an undisclosed sources in the foreign bank account or had received the money at any point of time upto the date of search. 27. Both the authorities have ignored the trust deed, list of beneficiaries, letter by the Swiss Federal Tax authorities which department itself has sought from the Swiss Government and the affidavit of Mr. SurykantChagganlalSuchak who has clarified the source of beneficiaries of the fund and has categorically stated that the trust account in Geneva was closed in before2012 and all the three brothers were principal beneficiaries of the CSFT and neither Mr. Dilip Thakkar nor Mrs. Indira Thakkar or their two daughters and the families have received any amount. He has given another affidavit and this SCS Family Trust was secured by his mother for the benefit of himself an....
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....bank account through cheque, the source of which was duly explained. It has been stated that, this transaction was purely between family arrangements on account of inheritance. The ld. AO has brushed aside the explanation of the assessee on the ground that source of the payment was unexplained. Even the ld. CIT(A) has confirmed the addition holding that assessee has furnished fund flow statement to explain the source of the funds and the payments but in absence of bank account statement to support the source of funds, same cannot be accepted. He heldthat, just because the payment has been made through cheque, it cannot be treated as explained. 30. From the perusal of the facts and material on record, we find that assessee's mother, Late Mrs. SnehilaJayantilal Thakkar in her will dated 01/11/2000 bequeathed her only residential flat in Mumbai equally to her two grand children, Mrs. MitaliRohitLakhanpal (daughter of assessee) and Jehil Ashok Thakkar (son of assessee's brother). The deceased mother's estate was bequeathed to HUF of DilipJayantilal Thakkar and HUF of Ashok Jayantilal Thakkar. This is clear from the contents of the 'will' given in the paper book at pages 145-14....