TMI Blog2013 (1) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... nd mother could not stand. If the assessee contends that that the benefits of proviso to Section 5(1)(c) enures to the advantage of the assessee, then, the assesee has to prove what is required under the provisions of the Act viz., that she had not derived any income outside India from the business controlled or a profession set up in India. A mere claim that the assessee is "Not Ordinarily Resident" in India does not take the assessee automatically away from the purview of Section 5. In the absence of any material placed before the authorities concerned that such income had accrued or arisen outside India, decides in favour of revenue - Tax Case (Appeal) No.128 of 2006 - - - Dated:- 22-8-2012 - MRS. CHITRA VENKATARAMAN AND MR. K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . There is no dispute as to the fact that the residential status of the assessee is "Not Ordinarily Resident". The assessee is a Singapore citizen married to an Indian and settled in India. There was a search conducted in the case of one Dyaneswaran on 19.1.1996 and in connection with this search the residential premises of the assessee and the place of business of the firm Tvl. Maniammal Textiles Pvt., Ltd., in which the assessee was a partner were also searched. Based on that search, proceedings were initiated for assessment under Chapter XIV-B. One of the materials seized during the course of search revealed that the assessee had advanced a sum of Rs.78/- lakhs to Smt. Maniammal of M/s. Maniammal Textiles Pvt. Ltd., Chennai on 8.11.1995. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Aggrieved by this, the assessee went on appeal before the Income Tax Appellate Tribunal. 4. Ongoing through the evidence, the Tribunal pointed out that the assessee encashed the demand drafts in India through her bank account in Indian Bank, Anna Nagar and later on this amount was advanced to Smt.Maniammal on 8.11.1995. In spite of a direction to the assesee to produce the details of the income tax of her mother and brothers, the assessee did not produce any material. On enquiry with the Revenue Authorities of Singapore, the Assessing Officer learnt that one of her brothers R.Pandian had a very meagre income of Singapore $ 5663 in the year 1996 and one R. Mooventhar had income of Singapore $ 22,319. The details as to why amounts had n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to the source of income for the donors, the claim of the assessee does not merit any consideration. Thus, the amount of Rs.78/- lakhs treated as unexplained investment under Section 69 and assessable as undisclosed income for the block period stands confirmed and the order of the Tribunal is accordingly confirmed. 7. As far as the alternative contention of the assessee that in view of the proviso to Section 5(1)(c), the amounts are not taxable in India, we do not agree with the said submission. Section 5(1) reads as under:- 5(1) Subject to the provisions of the Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which (a) is received or is deemed to be received i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rived from the business or profession set up in India. It is a matter of record that the assessee had business interest in India. 9. A reading of the order of the Assessing Officer and the Tribunal would show that the assessee took the stand that the amount received by her represented gifts from her relatives abroad. However, the assessee did not take any steps to produce the proof before the Assessing Officer to substantiate her contention. Before the Assessing Officer the assessee took the stand that the money was received from out of rental income. However, the enquiries with the Revenue Authorities in Singapore showed that the rental income started coming only with effect from 15.12.1995 i.e. 6 months after the receipt of cash, a fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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