9911796707
TMI Blog2012 (12) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) has erred on facts and in law in deleting the addition of Rs.57,48,341/- on account of foreign resilience received from M/.s Gorkha Airlines, Nepal disregarding the facts that the assessee had not furnished any evidence to support that the income has been earned abroad and is not taxable in India." 3. Briefly stated, the facts of the case are that the return of the assessee was processed under section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") and subsequently, the case was selected for scrutiny and a notices u/s 143(2) and 142(1) of the Act, along with questionnaire, were issued and on 29.8.2007, the assessee's representative attended the proceedings before the AO. On examination of books of accounts, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion as desired has not been carried out in spite of sufficient opportunity. The AO could have asked the appellant to file the salary certificate and verify whether the amount deposited in bank was in excess of the salary receipt and if so the explanation, if any, regarding the source of the balance amount. This has not been done. On perusal of the details I find that a sum of Rs.69,90,135/- has been deposited in the Everest Bank Nepal during the year as against the salary income of Rs.68,68,865/- as per details given below:- NPR Salary 22,98,545/- Allowances 5,13,274/- Profit in lieu of salary 63,46,666/- Total 91,58,485/- Less Tax deducted at source 22,89,620/- Net Paid 68,68,865/- 4.1 As per the certificate issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had not furnished any relevant and cogent evidence to show that the said income has been earned abroad and it is not taxable in India. He further supported the action of the AO by submitting that the assessee filed his return for the year under consideration in the status of "Resident". Therefore, the AO rightly added the same to his income. The ld. DR vehemently contended that the CIT(A) had no reasonable ground to delete the addition. Hence, the impugned order may be set aside restoring the order of the AO. 6. The AR submitted that action of the AO was arbitrary and on unreasonable ground and the ld. CIT(A) rightly deleted the same on verification of evidence submitted by the assessee. He further contended that the AO did not afford op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overned by the proviso to section 5(1) of the Income Tax Act, 1961 as he is working in Kathmandu, Nepal and hence his salary should not be taxable in India and therefore his salary earned/accrued in Nepal should not be included in the total income to be assessee in India. v) That the requisite details/information were filed as per the direction of the AO. The books of accounts were also produced. The AO made a clear mention of this in the assessment order. During the course of assessment proceedings, various documents were produced and it was contended that the payments have been transferred out of earnings of assessee from Gorkha Airlines where the assessee wanted to purchase a house/flat/plot at Gurgaon. vi) That there is an open border ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has opted this route, in order to recycle his unaccounted income back to India. Since the addition is saving bank account in much more than net earnings/saving (gross income tax expenses) the contention of the assessee that this amount is not taxable in India is not correct and is not based on proper facts of the case. Since this money has been invested in India and assessee has failed to give any satisfactory evidence in respect of this source of investment, the amount has been rightly added to the returned income of the assessee. The assessee has filed his income tax return in the status of the resident and has changed his stand in course of appellate proceedings. The assessee has filed affidavit and other documents in support of his co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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