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TMI Blog2014 (7) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of having all those accounts was to issue presigned cheques for charity - assessee and his brother had no connection with those bank accounts - they have not derived any benefits from those accounts – revenue has not established any nexus of the accounts with the business activity of the assessee - only foreign remittance was permissible to transfer the funds in NRE account - CIT(A) was right in holding that the addition was merely on a conjecture that the bank accounts belonged to "poor and gullible" relatives of the assessee, the deletion is upheld – Decided against Revenue. - IT(ss)A No.249, 251, 252 & 797/Ahd/2010 & IT(ss)A No.253, 254, 255 & 798/Ahd/2010 - - - Dated:- 25-7-2014 - Mukul Kr Shrawat And Anil Chaturvedi, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he bank accounts were found had in fact left India for the search of job being financially unsound and they were not qualified persons. The AO has opined that the firm was controlled by two brothers; therefore, out of the total peak deposits in those accounts he has taxed 50% in each hand. For A.Y. 2001-02, the AO has held as under: Sr. No. A/c No Name of Bank Branch Name of A/c. holder Amount 50% of the total amount deposited (Rs.) 1 18318 Canara Bank Revdi Bazar, Ahmedabad Bhimani Sajjadali Bashir Ali 1915578 (Peak Amount.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in bank accounts and only issued their cheques, already pre-signed by them, on their instructions. It is evident also that all these bank accounts were NRJE a/cs in which the deposit could only be of foreign remittances or from other NRE/FCNR a/c. The interest on this accounts were also exempted. The AO without going in to the details or bringing any evidence on record, had wildly alleged that it was the appellant / his brother who had introduced their unaccounted income in these bank accounts of poor and gullible relatives . The facts were totally, to the contrary. These relatives / close friends, living abroad and had got rich abroad and were now interested in charity from their substantial income. The Shri Mohd. Mohsin, had also spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re a conjecture. Additions made on such issues have no sanctity / basis and cannot be sustained. These additions are therefore be deleted, in respect of all the aforementioned assessment years in appeal. The related grounds of the appeal are therefore allowed. 6. From the side of the Revenue, learned CIT-DR, Mr. Subhash Bains appeared and pleaded that in view of the provisions of Section 132(4A), the statement of bank accounts were recovered from the possession of the assessee. Therefore, the presumption is that all those bank accounts belonged to the assessee. The assessee was in control of those accounts; hence, the credit entries in those accounts were nothing but the unexplained money of the assessee. He has placed reliance on the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olders were the benami holders of the assessee. 8. We have heard both the sides at some length. We have carefully perused the order of the Authorities below and in the light of the compilation filed before us. The compilation contained the statement of the assessee recorded at the time of search, the summary of the NRE accounts, the names and addresses of the NRI holding the bank accounts, their passport numbers, their respective declarations and their relationship with the assessee. On the basis of all those evidences, one thing has emerged undisputedly that the accounts seized at the time of search were NRE accounts. As a matter of fact, a non-resident external account can be funded only with foreign currency inward remittance through ..... X X X X Extracts X X X X X X X X Extracts X X X X
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