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Appeal against CIT(A) order confirming addition of undisclosed income based on NRI gift under Remittance of Foreign Exchange Scheme, 1991. Analysis: The appeal concerned the addition of Rs. 22,50,000 as undisclosed income of the assessee, related to an NRI gift received under the Remittance of Foreign Exchange (Immunities) Scheme, 1991. The assessee contended that the CIT(A) erred in confirming the addition. The key issue was the validity of the addition based on the assessee's statement that the NRI gift was bogus and that the assessee paid Rs. 22,50,000 for it. The statement was given before the Enforcement Directorate but was later retracted by the assessee. The Tribunal considered the factual matrix and legal position. The assessee's statement formed the basis for the addition, which was challenged on various grounds. Notably, the authorities relied on the confessional statement despite the Enforcement Directorate dropping charges against the assessee due to lack of evidence. The Tribunal highlighted the provisions of the Remittances in Foreign Exchange and Investments in Foreign Exchange Bonds (Immunities and Exemptions) Act, 1991, which provide immunity to recipients of foreign remittances under the scheme. However, the authorities erred in not granting this immunity to the assessee in this case. Moreover, the Tribunal emphasized that making additions based solely on the assessee's statement, without corroborative evidence, was legally unsustainable. The retraction of the statement was considered bona fide. The Tribunal concluded that the addition should be deleted, as it was contrary to the immunity scheme and violated the principle that no person can be forced to be a witness against themselves. The erudite legal arguments raised by the representatives were deemed unnecessary, as the addition was deleted, granting relief to the assessee. In the final decision, the Tribunal allowed the appeal, directing the Assessing Officer to delete the impugned addition of Rs. 22,50,000. The judgment emphasized the importance of adhering to legal provisions and protecting individuals' rights against self-incrimination, ultimately ruling in favor of the assessee.
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