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2014 (8) TMI 306 - AT - Income TaxAssessment u/s 153A - Additions on account of Deposits in bank account in the name of relatives – deposit into NRE accounts - Held that:- The compilation contained the statement of the assessee recorded at the time of search, the summary of the NRE accounts, the names and addresses of the NRI holding the bank accounts, their passport numbers, their respective declarations and their relationship with the assessee. On the basis of all those evidences, one thing has emerged undisputedly that the accounts seized at the time of search were NRE accounts - a non-resident external account can be funded only with foreign currency inward remittance through FCNR procedure - The foreign currency non-resident account “FCNR” can be funded through foreign remittance inward held by nonresident - the assessee’s stand was that the purpose of having all those accounts was to issue pre-signed cheques for charity - the assessee and his brother had no connection with those bank accounts; hence, they have not derived any benefits from those accounts – revenue has not established any nexus of those accounts with the business activity of the assessee - 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 – Decided against Revenue.
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