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TMI Blog2023 (1) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ternational Inc. It is indeed true that just because the assessee has received the money from a company based in the BVI, it cannot be taxed as unexplained credit. Assessee has to give complete details of the BVI entity and establish bonafides of the said entity as also of the transaction. The burden of the assessee cannot stand discharged just by his giving some incomplete and incoherent details of this entity and copies of some documents in a foreign language. All such treasonable details, in respect of this entity, as the authorities may requisition will have to be furnished by the assessee. The fact that the assessee has access to these documents and that close relatives of the assessee are major shareholders of the company shows ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust because the assessee is a Portuguese citizen, it does not amount to non-discrimination under the Indo-Portuguese tax treaty. Be that as it may, as the matter is being remitted to the file of the CIT(A) for adjudication de novo, the assessee is also granted liberty to take up this issue regarding alleged wrong levy of interest u/s 234B, if so advised, before CIT(A). CIT(A) may examine the matter, if so raised before him, and adjudicate upon the same in accordance with the law and by way of a speaking order. On both the issues thus matter stands restored to the file of the learned CIT(A). Appeal is allowed for statistical purposes. - ITA No. 1248/Mum/2021 - - - Dated:- 31-10-2022 - Pramod Kumar (Vice President), and Sandeep S Karh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er or amend any or all grounds of appeal and to submit such statements, documents and papers as may be considered necessary cither at or before hearing of the appeal. 3. Briefly stated, the relevant material facts are as follows. The assessee before us is an individual, a citizen of Portugal and a person of Indian origin. The assessee had filed his return of income showing nil income, claiming exempt income of Rs. 91,42,045/- representing interest received on NRE bank accounts and capital gains on sale of shares. This income tax return was selected for scrutiny assessment. During the course of the resultant proceedings, the Assessing officer, inter alia, noticed inward Telegraphic transfer of Rs. 7,25,64,624/- in the assessee s NRE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose for which this money was given by Topline International Inc to the assessee. What is filed as additional evidence before us included certain emails between Topline International Inc and it s bankers, as also certificates of incumbency of two customers of Topline International Inc. It is indeed true that just because the assessee has received the money from a company based in the BVI, it cannot be taxed as unexplained credit. However, the assessee has to give complete details of the BVI entity and establish bonafides of the said entity as also of the transaction. The burden of the assessee cannot stand discharged just by his giving some incomplete and incoherent details of this entity and copies of some documents in a foreign language ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax treaty, as set out in Article 24(1) of the Indo-Portugal Double Taxation Avoidance Agreement. In any case, it is only elementary that article 24(1) can come into play only when discrimination is based on nationality; that does not seem to be the case here. If interest is wrongly charged by the Assessing Officer, then just because the assessee is a Portuguese citizen, it does not amount to non-discrimination under the Indo-Portuguese tax treaty. Be that as it may, as the matter is being remitted to the file of the learned CIT(A) for adjudication de novo, the assessee is also granted liberty to take up this issue regarding alleged wrong levy of interest under section 234B, if so advised, before CIT(A). Learned CIT(A) may examine the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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