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2023 (11) TMI 759 - PUNJAB AND HARYANA HIGH COURTUnexplained investments/ amounts deposited in the foreign bank account - no concrete evidence to establish either the ownership of the alleged bank account or the alleged disputed deposits in those accounts to be belonging to the assessee -assessee submitted that the amounts deposited in the foreign bank account was by the nephew of the assessee namely Rajinder Singh Chatha, who was residing in U.K who was the beneficiary of the account - HELD THAT:- The profile of the bank as such would go on to show that name of the assessee was struck off from the said account on 11.06.2004, even prior to his visit in the year 2006 and notice was issued in the year 2014. We are of the considered opinion that the explanation offered by the assessee regarding the amounts belonging to his nephew was justified. It is not disputed that the documents as such which were filed showing the certificate of the C.A. whereby the said person had paid taxes on the outstanding amount in this impugned bank account to the revenue authority of U.K under specific disclosure facility. Only in the absence of explanation about the nature and source of income, the explanation offered by the assessee in the opinion of the AO is not satisfactory and the sum so credited may be charged to income-tax as the income of the assessee of the previous year. The assessee had given the explanation about the nature and source of the investments and the explanation offered by him was wrongly not accepted by the AO and the CIT. Once the Tribunal as such noticed the said background and had rightly come to the conclusion that the name of the assessee was withdrawn even prior to the notice being served upon him, the addition could not be made by the AO The factual matrix could not be disputed regarding this aspect by the counsel for the revenue. The justifiable explanation as such is given that the nephew had got his signatures. Sufficient explanation has been given regarding this fact by filing an affidavit, which has not been taken into consideration by the Assessing Officer or by the Commissioner of Income Tax. The assessee being an agriculturist and only having a small holding of land apparently could not be in possession of such huge amounts, which were also in foreign currency. Nothing as such was produced on record that the same was transferred from India where he was doing some business. It is neither the case of the revenue that the amounts were credited from his income while doing business at abroad and neither he was based abroad for such long periods to generate that kind of income. Decided against revenue.
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