9911796707
TMI Blog2024 (9) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 that the "capital introduced during the FY 2007-08 amounting to Rs. 45,96,730/- were his unexplained cash credits" in the books of account of M/s ST Couriers. 3. The Ld.CIT(A) erred in not considering the remand report of the AO to enhance the total income as the assessee did not have credit worthiness to explain the source of entire capital to the extent of Rs. 8,01,42,230 spread across A.Y 2008-09 to 2009-10 made in the firm M/s ST Couriers in which he is one of the partners. 4. The Ld.CIT(A) erred in considering the report of the AO about the total quantum of investment made by the assessee in two different forms, which totals to 23.31 crores and leaving a balance of Rs. 11.45 crores as unexplained investment after reducing the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 India as the source of the earnings was not from India. The submissions of the assessee were subjected to remand proceedings. The initial remand report was submitted by Ld. AO on 17-03-2015 and the same was favorable to the assessee. However, the subsequent remand report has certain adverse remarks towards the assessee's claim. Since the source of foreign remittance was doubted, a reference was made to FT&TR division which essentially confirmed that the assessee earned income from outside India i.e., Kuwait and Bahrain. The communications stated that the assessee earned business commission, salary income and dividend income since he was partner in an entity by the name SPC in Bahrain. It was confirmed by both Kuwait Autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 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 remand reports. A finding was rendered in that order that total foreign inwards remittances made in this year was Rs. 410.73 Lacs. Aggrieved as aforesaid, the revenue is in further appeal before us. Our findings and Adjudication 5. It is the finding of Ld. CIT(A) that during the course of survey on M/s ST Couriers, the partners' capital as on 31-03-2009 stood at Rs. 20.30 Crores out of which the assessee contributed Rs. 8.92 Crores as his capital. The assessee submitted that the source of investment on the firm was out of income earned from outside India. The assessee was employed from Middle East from 1993 to 2010 during which he earned 8848020 Saudi Riyals from M/s Skyline International Cargo, Saudi Arabi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. from 2004 to 2010, Shri Ansari was paid total remuneration of 8,27,226 Kuwait Dinars as remuneration. This is equivalent to sum of 12,92,21,170/- Indian Rupees. Therefore, there is no factual support to the finding of the Commissioner of Income Tax (Appeals) that Shri K. Ansari had no resources to remit large sums to the extent of more than Rs. 11 Crores to his brothers in Inda. Taking the remunerations from M/s Supreme Cargo Express together, the income of Shri K. Ansari during the relevant period was more than Rs. 13 Crores. The above findings shows that the assessee had sufficient sources to remit large funds to his brothers in India. The assessee was in possession of letter from the bankers along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 NRE bank account and gifted to brothers In Saudi Riyals Applicable conversion rate from Saudi Riyal to INR Income in INR approx In Kuwaiti Dinar Applicable conversion rate from Kuwaiti Dinar to INR Income in INR approx Total income earned abroad A.Y Income earned outside India credited to assessee's NRE bank account IN India Amt. Gifted to Navas Kani (brother) Amt. Gifted to K. Sirajude en (brother) 1 1993 1,48,596 NIL - - - - 2 1994 1,74,540 8.36311 14,59,697 14,59,697 3 1995 2,08,104 9.37571 19,51,123 19,51,123 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
