Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 1547 - AT - Income TaxPenalty u/s. 271(1)(c) - undisclosed deposits in bank account - assessee instead of surrendering his invalid Indian passport has used it to open a bank account in HSBC bank, Geneva - Held that:- The time of opening of the bank account in Geneva, the assessee was a US citizen and resident and he was holding a US passport. Still the assessee chose to open the account in HSBC bank account in Geneva by using the address and proof thereof by way of his Indian passport which was no longer valid when he has accepted the US nationality by surrendering Indian citizenship. Here the assessee instead of surrendering his invalid Indian passport has used it to open a bank account in HSBC bank, Geneva. Further, the assessee is not responding that this bank account has been disclosed to the US tax authorities. The suspicion that the deposits in this bank account have Indian origin is not unfounded. It is because of these circumstances, that when the ld. Commissioner of Income Tax (Appeals) has affirmed the reopening, the assessee has not challenged the same before the ITAT. Now coming to the merits of the addition, we find that account is in the name of three persons and the entire amount deposited has been added in the names of these two assessee’s twice. If the account is in the name of three persons, how can the full amount be added twice in the hands of both the assessee, has not been spelt out by the Assessing Officer. Secondly, the narrations in the bank accounts do not give any clue that these amounts originate from India. The assessee has responded that he is not able to obtain the necessary details from the bank. AO has also not made any effort to further identify the source of the deposits. It is also not the case that when the Assessing Officer’s inference is that the assessee’s are having partnership business of diamonds in India, the money belongs to the partnership firm. As held in the case of Kapoorchand Shrimal [1981 (8) TMI 2 - SUPREME COURT] it is the duty of the appellate authority to correct the error in the orders of the authorities below and remit the matter for further investigation with a necessary directions unless prohibited by law - remit the issue to the file of the AO. AO is directed to make further investigation into the source of the deposits in the bank accounts and also directed to apportion the amounts in the name of the account holders unless proved otherwise by means of cogent evidence. Since we have remitted the issue of addition in the quantum appeals to the file of the Assessing Officer, the penalties levied also do not survive and stand remitted to the file of the Assessing Officer. AO shall consider the issue afresh of levy of penalty u/s. 271(1)(c) of the Act after passing an order afresh in the quantum appeals. - Decided in favour of revenue for statistical purposes.
|