2023 (11) TMI 1249 - HC - Income Tax

Assessment u/s 153A - Undisclosed deposits with a foreign bank - HELD THAT - Despite a specific direction being issued, no affidavit has been filed on behalf of the respondent/revenue. On the other hand, Appellant has taken us through the documents that were the subject matter of proceedings before the statutory authorities, which, prima facie, seem to indicate that the information concerning the bank account said to be maintained by the appellant/assessee with Geneva Branch of HSBC Bank emanated prior to the search carried out on 14.11.2011 We may also note that the appellant/assessee refutes the veracity of the document furnished to him, which appears to be a bank statement. Despite the reminders served on the concerned officer and Respondent the affidavit has not been filed. As a result, we are left with only two choices. First, to proceed without the affidavit and draw our inferences based on the record made available by the appellant/assessee. Second, to give one more opportunity to the concerned officer to file an affidavit in terms of the court s order dated 18.08.2023. For the moment, we are adopting a conservative approach, which is to give one last opportunity to the concerned officer to file an affidavit, as directed by the court via order dated 18.08.2023. While filing the affidavit, the concerned officer will bear in mind the statutory record which has been made available in the matter, in particular, the parts to which our attention has been drawn during the hearing. Respondent will make sure that the concerned officer files the affidavit at least two (2) days before the next date of hearing and a copy of the same is furnished to Appellant

Summary

Issues involved:
The appeal concerns Assessment Year (AY) 2006-07. The appellant/assessee is disputing the addition made by the Assessing Officer (AO) based on undisclosed deposits with a foreign bank, specifically HSBC Bank, Geneva.

Issue 1: Allegation of undisclosed deposits with a foreign bank
The appellant/assessee contests the addition made by the AO, claiming no incriminating material was found during the search conducted. The information forming the basis of the order under Section 153A of the Income Tax Act, 1961 was already available with the revenue, specifically a purported bank statement from HSBC Bank, Geneva. The appellant argues that this information was supplied after the search and asserts that the impugned order deserves to be reversed based on relevant case law. The respondent/revenue is directed to provide an affidavit and incriminating material found during the search, which has not been done despite specific instructions.

Issue 2: Veracity of the documents and assertions by the appellant/assessee
The appellant refutes the authenticity of the document provided by the revenue, claiming not to maintain a foreign bank account as alleged. The appellant asserts lack of awareness regarding the source of the information, requests evidence supporting the claim, and highlights discrepancies in the document provided. Documents presented to the court support the appellant's assertions, including correspondences and statements. Despite reminders, the respondent/revenue has not filed the required affidavit, leading the court to provide one last opportunity for compliance.

Conclusion:
The court has given the revenue one final chance to file the necessary affidavit, emphasizing the importance of statutory records and evidence presented during the proceedings. The matter is listed for further hearing to allow for the submission of the affidavit and ensure a comprehensive review of the case before a final decision is made.