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TMI Blog1984 (12) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... : Foreign currency Amt. Rs equivalent Date on which the amount has been debited to assessee's Bank account $ 2000 Rs. 17436.80 26-10-1975 $ 2000 Rs. 17,605.80 20-10-1975 $ 3000 Rs. 26,408.45 —do— £ 1000 Rs. 18,127.40 —do— Total Rs. 79,548.45 .. 3. Regarding these remittances, the assessee submitted evidence in the form of bank account counterfoils issued by the Canara Bank and First National City Bank which showed that these amounts were received from Shri K. K. Karani, a cousin of the assessee, who was residing in Spain. However, these remittance came from Miami, New York, Los Angles and London. Thus, there was no doubt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee as satisfactory. According to him, these amounts totalling Rs. 79,548 really represented the income of the assessee. For arriving at this conclusion, he relied on the following facts: When, remittance was received on 26th Oct., 1975, the assessee credited it to a fixed deposit account on the same date. Secondly, though the purpose of the remittance in the certificates issued by the banks was not mentioned, it was stated to be to buy a flat. Thirdly, Shri K. K. Karani being an immigrant needed prior permission of the Government of India to acquire immovable property in this country and no such permission seemed to have been taken. Further, though Shri Karani lived in Spain, he sent the money from London and different places in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh recognised banking channels. He pointed to the certificates given by the bank placed at pp. 3, 4, 5 and 6 of the paper book. Secondly, he urged that the banks had certified the money as having been received from abroad. The column in the certificate regarding the purpose of remittance was required for the purpose of satisfying the authorities of the country from which the money was sent and, so, they were not necessarily to be stated by the bank in the country where the money was received. In any case, he urged that the omission by the Indian banks to state the purpose could not lead to the conclusion that no money was received from abroad. Thirdly, he stated that Shri K. K. Karani was an Indian citizen holding Indian passport and, so, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues/drafts issued by the banks situated for away at Los Angeles, London and Miami Beach? Did you have any business transaction with these banks? (h) What is the source from which the amount of Rs. 79,548 was sent by you? If the source is accounted for in the books of accounts, can you give details of the same? (i) Did the payment of the said sum of Rs. 79,548 represent any transaction in the nature of business? If so, kindly give details." The answers given by Shri Karani are as below: "Regarding your points, I have to say as follows: (a) Yes, I have sent these cheques/drafts to Shri N. J. Mansinghani. (b c) It was not by way of loan. I wanted to purchase house property at Bombay Fort. For that purées I sent the amount. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een accepted in the wealth-tax assessments. Under the circumstances, he urged that there was no case for assessing the amounts received from abroad as assessee's income from undisclosed sources. 7. Shri Prem Kumar, the ld. Departmental Representative on the other hand, supported the order of the CIT(A) and reiterated the arguments given by the ITO as well as the CIT(A) in their respective orders. According to him, Shri Karani had no where stated the source from which he brought the money which he sent to the assessee and, so, the same was rightly taxed in the hands of the assessee. 8. We have considered the contentions of both the parties as well as the facts on record. In our opinion, the contentions of the assessee carry force. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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