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2014 (7) TMI 908 - AT - Income TaxManipulation of bank account - AO has computed the peak deposits in each bank and half of the amount was taxed in the hands of the assessee and rest of the amount was taxed in the hands of his brother – Held that:- CIT(A) rightly held that the deposits in these accounts can be made by foreign remittances / drafts - Shri Mohd. Mohsin in his statement u/s. 132(4) had also given details and the reason for the possession of bank passbooks / cheque books - The accounts seized at the time of search were NRE accounts - Since inception when the raid was conducted, the assessee's stand was that the purpose of having all those accounts was to issue presigned cheques for charity - assessee and his brother had no connection with those bank accounts - they have not derived any benefits from those accounts – revenue has not established any nexus of the accounts with the business activity of the assessee - only foreign remittance was permissible to transfer the funds in NRE account - CIT(A) was right in holding that the addition was merely on a conjecture that the bank accounts belonged to "poor and gullible" relatives of the assessee, the deletion is upheld – Decided against Revenue.
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