9911796707
|
Home
Issues:
Assessment of income from undisclosed sources based on remittances received from abroad. Analysis: The appeal was filed against the order of the CIT(A) regarding the assessment of income for the assessment year 1976-77. The only ground of appeal was the assessment of a sum of Rs. 79,550 as the assessee's income from "undisclosed sources" related to remittances received from abroad. The assessee provided evidence through bank account counterfoils showing the remittances received from a cousin residing in Spain. The remittances were deposited in the assessee's savings bank account. The explanation given was that the money was held on behalf of the cousin for purchasing a house property. However, the ITO did not find the explanation satisfactory and assessed the amount as the assessee's income. The CIT(A) upheld the ITO's decision, stating that the source of the deposited amounts was not satisfactorily proven by the assessee. The CIT(A) believed that the assessee owned and enjoyed the money received from abroad. The representative of the assessee argued that the fixed deposits were made after several months of receiving the remittances and pointed out certificates from banks confirming the foreign origin of the money. The representative also clarified that the cousin, being an Indian citizen, did not require permission to acquire property in India. The Tribunal considered the evidence presented, including affidavits and enquiries made by the CIT(A), confirming the foreign origin of the money. It was established that the money belonged to the cousin and was held by the assessee on his behalf. The Tribunal found no justification to treat the sum of Rs. 79,550 as the assessee's income and decided to delete it from the total income. In conclusion, the Tribunal allowed the appeal, ruling in favor of the assessee and deleting the assessed amount from the total income.
|
