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TMI Blog2024 (9) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeals by revenue for Assessment Years (AY) 2008-09 2009-10 arise out of the separate orders of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] both dated 29-09-2023 in the matter of separate assessments framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 148 / 143(3) of the Act on 31-12-2010 / 30-12-2011 respectively. It is admitted position that facts as well as issues are quite identical in both the years and our adjudication in any one year shall equally apply to the other year also. The grounds raised by the revenue for AY 2008-09 read as under: 1. The Ld. CIT(A) erred in facts and law in deleting the addition made amounting to Rs. 1,88,52,068/- on account of unexplained foreign inward remittance u/s 68 of the Act. 2. The Ld.CIT(A) has erred in considering the report of FT TR in favour of the assessee which lacks in substantiating the contention of the assessee to explain the sources earned outside India for making inward foreign remittances. Further, the assessee himself had admitted in the sworn statement recorded on 23.09.2009, during the course of survey proceedings tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed copy of passport, however, it did not file any supporting document substantiating the source of remittances from abroad. The assessee did not file Form A2 declaration which was required for inward remittances. The assessee also did not file any documentary evidences to establish these credits. The Ld. AO held that mere remitting the amount to a NRE account from abroad does not amount to exempted remittance or for which no explanation is required. Therefore, the credit of Rs. 188.52 Lacs was added to the income of the assessee as unexplained foreign remittances. 3.3 In AY 2009-10, certain deposits were noted in NRE Bank Account of the assessee. However, the assessee could not produce FICR certificates. Therefore, the deposits of Rs. 239.41 Lacs were alleged to the income of the assessee in India. The Ld. AO made another addition of cash deposit of Rs. 13.60 Lacs which were stated to be rental advance and rental deposits. Aggrieved, as aforesaid, the assessee preferred further appeal for both the years. Appellate Proceedings 4.1 During appellate proceedings, the assessee submitted that foreign remittance constitutes earning from abroad which could not be subject to tax in Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is cash book furnished by the assessee and the return of income of Mrs. Jerina Banu and the same was found to be in order. The Ld. AO did not make any addition on this account and therefore, the same was to be accepted. 4.4 With respect to foreign inward remittances of Rs. 188.52 Lacs, Ld. CIT(A) concurred that the assessee had source from outside India which could not be subject matter of chargeability u/s 5(2). The remand report of Ld. AO in the case of assessee s brother Navaz Kani, survey report and the order of Tribunal in the case of Navaz Kani as well as assessment record of the assessee were examined in the context of cash inflow and cash outflow. The affidavit of the assessee regarding business connection and permanent establishment of M/s Supreme Cargo Express in Kuwait and M/s Skyline International cargo Agency in Saudi Arabia were taken on record. In the light of all these facts, the impugned addition for AY 2008-09 was deleted against which the assessee is in further appeal before us. 4.5 For AY 2009-10, the Ld. CIT(A), relying upon its order for AY 2006- 07, deleted addition of Rs. 239.41 Lacs. The addition of Rs. 13.60 Lacs was sustained. The same was based on the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not liable to Income Tax. 6. Pertinently, Chennai Tribunal in the case of assessee s brother Mr. K. Sirajudeen and Mr. K. Navaskani (ITA No.788 to 794/Mds/2013 dated 16-07-2013 rendered its findings as under: - The next additional objection raised by the commission of income tax (appeals) is that Shri K. Ansari is only an ordinary employee and he could not have had that much funds to remit a huge sum of more than Rs. 11 Crores to his brother in India. As page 80 of the paper-book, a copy of the certificate issued by the Chairman of M/s Skyline International Cargo Agency, KSA is provided. The said certificate speaks about the total remuneration paid to Shri K. Ansari for a period of 18 years from 1993 to 2010. The remuneration paid to Shri Kader Meeran Ghani Ansari comprised of basic pay per month plus sale commission per month. The total remuneration paid to Shri Ansari by M/s Skyline International Cargo Agency in 1993 was 12,383 Saudi Riyals. In 2010, the total remuneration was 62,378 Saudi Riyals. As page 81 of the paper-book there is another certificate issue by the managing director of M/s Supreme Cargo Express. This certificate shows that within a period of seven years i.e. f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri K.Sirajudeen, two brothers of the assessee. It was noticed that two letters were produced from M/s Skyline International Cargo Agency and M/s Supreme Cargo Express supporting the fact that the assessee was employed in UAE. This remand report is thus quite favorable to the assessee. The fate of FT TR report has already been considered by Ld. CIT(A) in first appeal order for AY 2006- 07 as well as appeal order for impugned years. Upon perusal of information supplied by M/s Supreme Cargo, it could be seen that it has been confirmed by that entity that the assessee was associated with them during the period from 2004 to 2010 and he was sharing business leads to them for export business. They have also confirmed sending business promotion expenses. They have merely expressed inability to furnish old records but admitted to have remitted commission to the assessee. The other party has also confirmed connection with the assessee. Therefore, the remittances so made by the assessee could not be doubted. 8. Further, Ld. AR has placed on record complete details of cash flows on page no. 147 as under: - No. Year Amount earned outside India Income earned outside India credited to assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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