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2019 (4) TMI 94 - ITAT COCHINAddition u/s 69 on account of deposit with HSBC Bank account - Income received /Accrued or deemed to be received/ Accrued in India u/s 5 - deposits made out of foreign source - assessee and his wife are NRI and are US citizens - A.O. was of the view that the assessee was not able to prove that the deposits in HSBC Bank account are on account of foreign earned income - AO jurisdiction to tax the deposits held by the assessee abroad - CIT(A) deleted the additions - HELD THAT:- The assessee is NRI and a citizen of USA for many years prior to concerned assessment year is not in dispute. In the said circumstances, the Assessing Officer has no jurisdiction to tax the deposits held by the assessee abroad unless it is proved that the source of deposits are from India. On identical issue in DCIT (IT) -3 (3) (2) , MUMBAI VERSUS SHRI HEMANT MANSUKHLAL PANDYA [2018 (11) TMI 949 - ITAT MUMBAI] decided the issue in favour of the assessee. (i) The Assessing Officer has no jurisdiction to tax the deposits made by the assessee in HSBC unless the source of deposits are from India, as the assessee is a citizen of USA and is a Non-resident in India within the meaning of the Income-tax Act, 1961 from 1993 onwards and even for the earlier years. (ii) The assessee has to prove that the source of deposit in the HSBC account was out of India and not from India. (iii) If the deposits were not made out of foreign source during the years for which assessments are made, but are carried over balances from NRI Bank account in 1999, then the assessee has to prove by producing relevant bank account to confirm that it was deposited into Indian bank account out of transfer of funds from foreign NRI Bank account. Remit the issue in dispute to the file of the Assessing Officer with a direction to pass fresh order in the light of our above directions - Appeals filed by the Revenue are allowed for statistical purposes.
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