2001 (11) TMI 975

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..... epali citizens in the Indian banks cannot be taxed under section 69 of the Income-tax Act, 1961. The main reason asserted by the Department is that it is not proved that the source of such deposit in the bank is actually in Nepal and not in India. The learned Departmental Representative submitted that on the basis of the enquiry conducted at the bank information was gathered under section 133(6) .....

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..... arned counsel for the assessee submitted that the learned Commissioner of Income-tax (Appeals) had considered the facts and circumstances under the provisions of the law inasmuch as he has relied on articles 6 to 21 which form part of Chapter III under the head "Taxation of income". This provides for not taxing in India the deemed income of residents of Nepal. Therefore, it was not a case that of .....

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..... to the residents of India and there is no presumption that it does not belong to the Nepali residents in whose names the deposits stand. Furthermore, there was no violation of Nepali law which, if it may be in the fitness of things, be brought to the notice of the Nepali Rashtriya Bank directly or through the Nepali Embassy or Consulate. In view of these facts and circumstances, we have no hesitat .....

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