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TMI Blog2014 (8) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... d remittance through FCNR procedure - The foreign currency non-resident account “FCNR” can be funded through foreign remittance inward held by nonresident - the assessee’s stand was that the purpose of having all those accounts was to issue pre-signed cheques for charity - the assessee and his brother had no connection with those bank accounts; hence, they have not derived any benefits from those accounts – revenue has not established any nexus of those accounts with the business activity of the assessee - 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 – Decided against Revenue. - IT(ss)A No.249, 251, 252 & 797/Ahd/2010, IT(ss)A No.25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is the owner of the bank pass-books. Further, it was also remarked by the AO that the persons in whose names the 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:- 3. Likewise in rest of the years, the AO has computed the peak deposits in each bank and half of the amount was taxed in the hands of the assessee and rest of the amount was taxed in the hands of his brother. 4. When the matter was carried before the First Appellate Authority, year-w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 specified these facts, in his statement u/s.132(4) dated 04/05-08-06, in reply to Q. No. 8 9 as under: 5. Another fact has also been informed to learned CIT(A) that a sum of ₹ 1.07 crore has already been offered in the hands of the partnership firm M/s. Black Diamond Trading Company. Further, it was also informed that the bank accounts were NRE accounts; th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons 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 findings of the AO that the persons were not having good financial status in India; therefore, left the country for seeking job abroad. In that situation, it was wrong on the part of the assessee to make a story that the account were in his possession to do charity work on their behalf. 7. From the side of the respondent-assessee, learned AR, Mr. Tushar P. Hemani appeared and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 FCNR procedure. The foreign currency non-resident account FCNR can be funded through foreign remittance inward held by nonresident. Since inception when the raid was conducted, the assessee s stand was that the purpose of having all those accounts was to issue presigned cheques for charity. It was categorically stated that the assessee and his brother had no connection with t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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