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2017 (1) TMI 1295 - HC - Income TaxReopening of assessment - existence of reason to believe - large withdrawals from the HSBC Bank account - no return of income was filed - Petitioner is a non-resident - Held that:- The reasons recorded in support of the impugned notice proceeds on an assumption that the Petitioner has business interest in India merely because he had made large withdrawals from the HSBC Bank account. This is particularly so when, prima facie, it is undisputed that the deposits are sourced from abroad. Non-filing of return of income on accrued interest earned - Prima facie it is not sustainable as a non-resident, in these facts, is not required to file his return of income in view of Section 115G of the Act. Similarly, the other factors viz: expenditure of ₹ 90,000/paid to Trade Mark Registry is explained in the objections being the withdrawal by the wife of the Petitioner from the joint account, an amount of ₹ 1.67 lakhs paid to C.A. was on account of professional services received and payment of ₹ 10.84 lakhs to insurance company was on account of car insurance. The payment of ₹ 2 lakhs to M/s. Sunny Vista Realtors Pvt. Ltd. does not establish, prima facie, any business connection of the Petitioner in India as it was, according to Petitioner, for booking of house to be constructed. None of these, prima facie, taken individually or together can form the basis of reasonable belief that the Petitioner has business connection in India which gives rise to income in India. These materials are indefinite/incomplete to form a reasonable belief of income escaping assessment by themselves. The above material would be at the highest could be reason to suspect but prima facie, not a reason to believe. - Decided in favour of assessee
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