Relevancy or usefulness of books of accounts and other documents u/s 132(i). - Income Tax - 1527/CBDT

INSTRUCTION NO. 1527/CBDT Dated: December 9, 1983 It has been represented to the Board that in view of the difficulties being faced by the persons migrating from Sri lanka to India due to recent disturbance in that country, it may not be possible for a migrant from that country to lead the evidence necessary to prove his/her claim that a particular sum of money or personal jewellery etc., has been brought over by him/her form that country. 2. In order to avoid inconvenience to persons of Indian origin migrating from Sri Lanka, in their income-tax assessments in India, the Board consider that the cases of bonafide migrants from that country should be dealt with in a sympathetic manner. In their cases, production of direct or documentary evidence in the shape of transfer through banks, hundis, etc. in support of remittance from that country need not be insisted upon. However, with a view to ensure that unscrupulous persons do not abuse the concessions, the Income-tax Officers should ensure the satisfaction of the following conditions before accepting a claim of remittance from the above-mentioned country:- (i) The assessee has migrated to India from Sri Lanka on or after 1st April, 1983. (ii) The assessee had sufficient resources in Sri Lanka to which the remittance could be reasonably attributed. (iii) The assessee had no source of income either in India or any foreign country other than Sri Lanka, prior to migration and he was not assessed as resident in India either for the assessment year preceeding the year in which he migrated or for earlier years. (iv) The assessee has intimated the Income-tax Officer concerned about the sum brought over and the date(s) of its introduction in the books of account within two months of the date of his arrival in India and in the case of persons who have already migrated, by the 30th November, 1983. The above concession will be subject to an overall ceiling of Rs.2 lakhs in respect of all sums brought over from Sri Lanka and introduced as such in the account books by the assessee and all members of his family taken together. 3. In the following cases, namely:- (a) Where the money claimed to have been brought over exceeds Rs. 2 lakhs; (b) Where the assessee had some sources of income prior to migration either in India or any other country, other than Sri Lanka; or (c) where the assessee was assessed as resident in India either for the assessment year preceding the year in which he migrated of for earlier years; Any claim that funds have been brought from Sri Lanka will be accepted only if the assessee produces adequate evidence to reasonably satisfy the Income-tax Officer that he had sufficient sources in the country to cover the remittance provided that the assessee has migrated from that country to India on or after the date specified in paragraph 2(i) and has given the necessary intimation to the concerned Income-tax Officer within the time specified in paragraph 2(iv). The assessee, however, will not be required to establish the actual remittance of moneys through banks etc. 4. The above instructions may please be brought to the notice of all the officers working under you.