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TMI Blog2024 (9) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... urisdiction to issue the notice u/s 148A (a) or 148A (b) of the Act only on the basis of the information available on the insight portal. The petitioner has provided the details with regard to term deposits placed in two accounts with the HDFC Bank and has also provided bank statement with the reply. The petitioner has submitted the entire bank statement and the explanation that being NRE remittance in the account was made by the petitioner from Saudi Arabia out of salary credited and received outside India and out of maturity of the FDR. The petitioner has also provided the date wise details of all credit in the bank account with the HDFC bank during the year. Notice of reopening under section 148A of the Act could be issued only by an Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tanding Counsel Mr. Karan Sanghani waives service of notice of rule for the respondents. 4. Having regard to the controversy involved which is in narrow compass, with the consent of the learned advocates for the parties, the matter is taken up for hearing. 5. Brief facts of the case are that the petitioner is an individual and Non-Resident Indian employed in Saudi Arabia working with SABIC Agri Nutrients Company since 2013. A notice under section 148A (a) of the Act was issued by the respondent on 26.02.2024 for Assessment Year 2017-18 seeking explanation/information/documents regarding term deposit of Rs. 1,17,47,000/- along with details such as Form No. 26AS, bank statements etc. from the petitioner. 6. Thereafter, on 27.02.2024, another ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasonable and hence, unacceptable as in respect of the term deposit accounts, the petitioner did not submit statements or evidence to prove that such accounts are created under the category of Non-resident (External) Account. 11. The respondent thereafter, along with the aforesaid order, issued notice dated 27.03.2024 under section 148 of the Act for the Assessment Year 2017-18. Being aggrieved, the petitioner has filed this petition. 12. Learned advocate Mr. Sagar Shah with learned advocate Mr. Nidhi Vyas for the petitioner submitted that the impugned order passed under section 148A (d) of the Act and the impugned notice under section 148 of the Act are without jurisdiction as the petitioner is a Non-resident Indian. It was pointed out t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and therefore, the impugned notice is liable to be quashed and set aside. It was further submitted by learned advocate for the petitioner that the the petitioner has also received a communication from the office of the Income Tax Officer at Vijayanagaram, Andhra Pradesh, for the Assessment Year 2018-19 and therefore, the respondent-Assessing Officer at Vapi has no jurisdiction. 15. On the other hand, learned Senior Standing Counsel Mr. Karan Sanghani appearing for the respondent submitted that the petitioner did not provide any statement or evidence to prove that accounts with HDFC Bank are created under the category of Non-resident (External) Account and therefore, the Assessing Officer has rightly come to the conclusion that it is a fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccounts, the assessee has not submitted any documentary evidence. A certificate of employment cannot be considered as explanation for large credits in his bank accounts. 5.3 Under the provisions of section 10 (4) (ii) of the IT Act, the interest accrued on the money standing credit to an individual in Non-resident (External) Account by any bank within India does not form part of total income. However, in respect of term deposit accounts, the assessee has not submitted statement or evidence to prove that these accounts are created under category of Non resident (External) Account. In view of the same, the interest accrued on the term deposits, which in absence of the statements, is not quantifiable at this point also has escaped the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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