Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (2) TMI 529 - AT - Income TaxAddition u/ 68 - case of the assessee was selected for scrutiny under CASS - cash deposits and saving bank account is more than the turnover cash - assessee is coming from Pakistan - main claim of the assessee is that the issue is squarely covered in favour of the assessee by the notification number 73/16/68/IT/A –II dated 3/2/1969 issued by the Ministry of Finance (Department of revenue and insurance), New Delhi which are duly met by the assessee as assessee is coming from Pakistan, the source of the fund is not required to be explained - HELD THAT:- Assessee brought 50 lakhs of Indian rupees in India through unofficial channel as claimed by the assessee. However, it is a matter of common knowledge as per information available in public domain; generally the exchange rate for one Indian rupee is ₹ 1.75 Pakistani rupees. Therefore it is highly improbable that a person gets ₹ 50 lakhs of Pakistani rupees and deposited in Indian bank ₹ 50 lakhs INR in Indian banks. In view of this assessee is also required to explain that where from he got the money and how much, what is the conversion rate at that prevail in time i.e. how many Pakistani rupees he paid for getting 50 lakhs Indian rupees for depositing in the bank account. The assessee is required to show the source of that some. As before the assessing officer assessee could not submit all the requisite details, the assessee submitted details according to his understanding before the CIT A, but without any enquiry, the evidence produced by the assessee were rejected. The assessee is not an Indian resident but has come from Pakistan as persecuted hindu community therefore naturally the assessee will not have the sufficient or foolproof evidences. This fact has also been considered in this notification number 5 dated 29/05 /1969 wherein it is provided that any claim by such migrants that the funds or the jewellery have been brought from the abovementioned countries, will be accepted only if the persons concerned produce adequate evidence to show that they had sufficient funds/wealth in those countries and that the transfer of the cash/jewellery to India can directly be linked with the said funds or wealth. These migrants will have to lead proper evidence like any other assessees, about the source of the cash/jewellery alleged to have been brought by them from these countries. In support of the claim that they had sufficient funds in those countries, they might produce before the income-tax authorities in India their bank accounts in those countries as also copies of the assessment orders passed in their cases by the income-tax authorities of those countries. The migrants would also then be required to prove that the amounts brought into India can directly be linked with the funds which they had possessed in those countries. Even it is also the request of the assessee that the learned assessing officer has not considered the evidence placed before him in view of the above circular therefore the matter should go back to the assessing officer. The revenue did not contest the above claim of the assessee. Even otherwise for the reasons stated above, we set-aside the whole issue back to the file of the learned assessing officer with a direction to examine the evidence produced by the assessee and test them in accordance with notification number 5 - Appeal of the assessee is allowed for statistical purposes
|