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TMI Blog2024 (11) TMI 1027X X X X Extracts X X X X X X X X Extracts X X X X ..... tion available on record remanded the matter back to Assessing Officer. However, the Assessing Officer did not accept or verify the additional evidences forwarded by the ld. CIT(A). CIT(A) deleted the additions made by the AO on investment in mutual fund during the current assessment year - We observed that the findings given by ld. CIT (A) are based on the information very much available on record and it is also fact on record that assessee is an NRI and all the source of income are from his salary income earned by the assessee outside India - No reason to disturb the findings of the ld. CIT (A) considering the fact that all the informations are traced from the bank statements submitted by the assessee. Therefore no reason to disturb the findings of the ld. CIT (A). Accordingly, ground raised by the Revenue is dismissed. LTCG on sale of equity oriented mutual funds - Since the transaction falls u/s 10(38) accordingly ld. CIT (A) deleted the addition - CIT (A) has considered various informations submitted before Assessing Officer as well as in remand proceedings. Therefore, we are inclined to accept the findings of ld. CIT (A) that these transactions are covered by section 10(38) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as reopened under section 147 of the Act by recording the reasons and served the notices through ITBA System. 6. Considering the time barring nature of the proceedings, a final show-cause notice giving final opportunity to the assessee was issued on 04.03.2022 requiring the assessee to file details/documents by 09.03.2022 before finalization of the assessment order ex-parte. He observed that as no response from the assessee till date of passing the assessment order was received, he proceeded to decide the issue u/s 144 of the Act and sustained the income received by the assessee and investment as unexplained income/ investment u/s 69 of the Act. He further observed that assessee did not file any document to substantiate its Tax Residency Status for the purpose of taxation in India. Accordingly, he proceeded to add Income from House Property, Income from Other Sources and long term capital gain claimed by the assessee as per return of income. Accordingly, he determined the total income of the assessee at Rs. 3,15,38,615/- against the declared income in his return of income of Rs. 31,16,370/-. 7. Aggrieved, assessee preferred an appeal before the ld. CIT (A), Delhi-43. Before ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the account held with HSBC bank. (ii) That during the year under consideration, the total amount invested in mutual funds is Rs. 2,78,10,878/-. Details of the same are as under: S.No. Date Mutual Funds Amount 1. 18-Jun-2014 FRANKLIN TEMPLETON MUTUAL FUND 33,50,000/- 2. 18-Jun-2014 IDFC MUTUAL FUNDS 24,80,878/- 3. 18-Jul-2014 BIRLA SUN LIFE MUTUAL FUNDS 10,90,000/- 4. 08-Aug-2014 ICICI PRUDENTIAL MUTUAL FUNDS 15,00,000/- 5. 14-Aug-2014 IDFC MUTUAL FUNDS 23,00,000/- 6. 05-Nov-2014 HDFC FMP Investment HDFC FMP 370D 1,00,00,000/- 7. 15-Dec-2014 ICICI PRUDENTIAL MUTUAL FUNDS 11,40,000/- 8. 20-Mar-2015 IDFC MUTUAL FUNDS 50,00,000/- 9. 23-Mar-2015 ICICI PRUDENTIAL MUTUAL FUNDS 9,50,000/- TOTAL 2,78,10,878/- (iii) That the amount invested in mutual funds is sourced from the redemption of existed mutual funds and from the funds remitted through Citi Bank (UAE) from salary income earned abroad (UAE). The same is evident from the bank statement(s) of A/cs held with HSBC bank and Citi bank. (iv) The Ld. AO has relied only on the information gathered from the Form 26AS and ITS (Individual Transaction Statement). However, the Ld. AO has not looked into the relevant bank statement(s) and has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .04.2014 4,73,567 27.06.2011 5,30,000 -56,433 Loss Fund Dividend Payout 23.04.2014 32,22,863 22.02.2012 25,00,000 7,22,865 Profit HDFC Prudence Fund Growth TOTAL 6,66,432 Gain The said fact is verified from the Portfolio statement for the year under consideration. The relevant capital gain arising thereof, is exempt as per the provisions of section 10(38) of the Income Tax Act. Accordingly, the addition of Rs. 6,66,430/- made in respect of Income from Capital Gain is hereby deleted and the respective ground of appeal raised by the appellant is hereby allowed. 8. Aggrieved with the above order, Revenue is in appeal before us raising following grounds of appeal :- (i) Whether on facts and circumstances of the case, ld. CIT (A) has erred in law by not considering the comments submitted by the AO in the remand report and allowing the appeal of the assessee. (ii) Whether on facts and circumstances of the case, ld. CIT (A) has erred in law by deleting the addition of Rs. 6,66,420/- towards capital gain ignoring the fact that the assessee has not submitted any documentary evidence in support of his claim. (iii) Whether on facts and circumstances of the case, ld. CIT (A) has erred in law b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on that, he proceeded to complete the assessment u/s 144 of the Act based on the information available on his record. We observed that there is no proper opportunity was extended to the assessee during the current assessment proceedings because of that assessee has submitted various information after draft assessment order. However, the Assessing Officer has not considered those informations. Even before ld. CIT (A), assessee has submitted additional informations under Rule 46A of the Rules. Ld. CIT (A) as per information available on record remanded the matter back to Assessing Officer. However, the Assessing Officer did not accept or verify the additional evidences forwarded by the ld. CIT(A). Ld. CIT(A) has brought on record and made his observations at para 5.2 of the order. Ld. CIT(A) also reproduced various submissions made by both the parties and proceeded to adjudicate the issue as per the information available on record. As per the findings of ld. CIT (A), we observed that the investments made in mutual funds are made from bank account maintained with HSBC. Ld. CIT (A) also tabled the details of the investments made by the assessee during the year to the extent of Rs. 2,78 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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