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2023 (9) TMI 601 - ITAT AHMEDABADDisallowances of exempted income and unsecured loan respectively - assessee is a non-resident individual and holds tax residency certificate of UAE as claimed to be engaged in the business of general trading through a partnership firm, namely Baba Tex General Trading LLC, in which he is partner of 49% for the share of profit - HELD THAT:- There is no dispute that the assessee has shown the exempted income in the income tax return and therefore the onus lies upon the assessee to justify based on the documentary evidence. The assessee has furnished the necessary supporting evidence by raising his contentions during the appellate proceedings which have nowhere been denied by the revenue based on cogent material suggesting that the exempted income shown by the assessee represents the undisclosed income of the assessee taxable in India as per the provision of section 5(2) of the Act. In our considered view, the income of the assessee cannot be decided based on a mere piece of paper. As such, it should be corroborated by the material available on record. However, in the case before us, the AO has not brought any material on record to disprove the contention of the assessee. To classify any item based on paper as income, it is necessary for the party alleging so to pinpoint the specific instances and corroborative material. However, in the case before us no material has been brought on record by the AO. Merely the amount shown by the assessee under the head of exempted income cannot represent the undisclosed income of the assessee in the absence of corroborative material suggesting that the income earned by the assessee is taxable in India. Credit in the bank account of the assessee on account of foreign remittance - We note that the money was remitted from the foreign bank account of the assessee which can be verified from the details available - Such entry in the bank account of the assessee was not reflecting any business transactions in India and therefore the same cannot be treated as income of the assessee. It is also pertinent to note that the assessee being non-resident Indians has remitted the money in his bank account in India which cannot be termed as loan to the assessee or income of the assessee. It is for the reason that the status of the assessee being individual cannot be treated differently and therefore any receipt to the and NRE account of the assessee cannot be classified as income of the assessee. The relevant provisions of section, in this regard, have already been elaborated in the preceding paragraph. Thus the amount of remittance from the UAE does not represent an income of the assessee and therefore we decline to interfere in the finding of the learned CIT(A). Hence the ground of appeal of the revenue is hereby dismissed.
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