2001 (11) TMI 975 - AT - Income Tax

Summary

The Appellate Tribunal ITAT Patna ruled that unexplained deposits in Indian banks in the name of Nepali citizens cannot be taxed under section 69 of the Income-tax Act, 1961. The Tribunal held that the taxability of deemed income under section 69 does not apply based on the double taxation avoidance agreement with Nepal. The Tribunal dismissed the appeal filed by the Department, stating that there was no evidence that the money belonged to Indian residents and no violation of Nepali law was found.