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TMI Blog2022 (8) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,00,000/-. On verifying, it is found the source payment for purchase of the property is from the NRE bank account No. 27370100004782 with Bank of Baroda, Satellite Branch, Ahmedabad. The assessee was asked to furnish the source of credit appearing in the NRE bank account with documentary evidences. The assessee has furnished bank book showing narration of the transactions appearing in the NRE account. However, the assessee has not submitted the documentary evidence of source of credit in respect of debit/credit as per bank account statement in respect of following transactions. Date Narration Amount 04/04/2015 Inward Remit From BOB Mau-MVD 6222500 28/04/2015 Inward Remit From BOB Mau-MVD 6334500 14/08/2015 Inward Remit From BOB Mau-MVD 6457500 01/09/2015 Inward Remit From BOB Mau-MVD 121664420 2.1. A notice u/s. 142(1) was issued requesting the assessee to submit the details of debit and credit entries. The assessee replied vide letter dated 03.12.2018 that an application was made by him to Bank of Baroda, Mauritius branch for getting details of transfer of funds to Bank of Baroda Satellite Branch, Ahmedabad. Not satisfied with the reply, the A.O. issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al before the Ld. CIT(A). The assessee submitted before the Ld. CIT(A) that he is a NRI since more than a decade and having no business income of India. The assessee submitted copy of passport to prove the status as assessee as Non Resident Indian. The assessee and his wife both resident of Lesotho, wherein Lesotho is a part of SACU union which consists of Botswana, Namibia, Swaziland, South Africa and Lesotho. The assessee and his wife used to live and work in Mauritius from 1998 to 2000 and said Bank of Baroda NRE account was operated during that period. The assessee further submitted that Lesotho is a least developed country with severe political instability and as per the Reserve Bank rules in Lesotho, an individual cannot maintain a foreign currency account within that country. Even if exceptions are made and granted after taking special permission, the foreign currency has to be converted to local currency within 180 days of receipt. Accordingly, the income earned outside India was deposited in the Joint USD account Mauritius. 3.1. In order to establish the source of commission Income from Highlife Trading Company in Mauritius, the assessee submitted copy of commercial invoi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Act. Therefore, the addition made in the Assessing officer towards unexplained investment u/s. 69A on the ground that the assessee failed to explain the source of credit entries in NRE account is not justified. Therefore the addition of Rs. 3,11,80,920/- made by the Assessing Officer is thereby deleted and allowed the assessee's appeal. 4. As against the same, the Revenue is in appeal before us and raising the following Grounds of Appeal: 1. That the Ld. CIT(A) has erred in facts and in law in deleting the addition of Rs. 3,11,80,920/- on account of unexplained credit entries from undisclosed source of income u/s. 69A r.w.s. 115BBE of the Act. 2. That the Ld. CIT(A) has erred in law and in facts in deleting the above addition without appreciating the fact that the assessee has failed to substantiate his source of income in India and abroad with documentary evidence, though multiple opportunities were provided by the AO during the course of assessment proceedings. 3. The Ld. CIT(A) has erred in law and on facts in considering the additional evidence submitted by the assessee, without giving opportunity to the AO for comments or verification under Rule 46A of the IT Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Act are read as follows: "5. Scope of total income. (1) Subject to the provisions of this Act the total income of any previous year of a person who is a resident includes all income from whatever source derived which (a) is received or is deemed to be received in India in such year by or on behalf of such person; or (b) accrues or arises or is deemed to accrue or arise to him in India during such year; or (c) accrues or arises to him outside India during such year: Provided that, in the case of a person not ordinarily resident in India within the meaning of sub-section (6) of section 6, the income which accrues or arises to him outside India shall not be so included unless it is derived from a business controlled in or a profession set up in India. (2) Subject to the provisions of this Act, the total income of any previous year of a person who is a non-resident includes all income from whatever source derived which (a) is received or is deemed to be received in India in such year by or on behalf of such person; or (b) accrues or arises or is deemed to accrue or arise to him in India during such year. Explanation 1: Income accruing or arising outside India ..... X X X X Extracts X X X X X X X X Extracts X X X X
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