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TMI Blog2014 (7) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... be in the names of relatives. 2. Facts in brief as emerged from the orders of AO passed u/s.153A r.w.s. 143(3) all dated 29.12.2008 were that a search u/s.132 was carried out in the group cases known as "Dosani Group" on 4th August, 2006. The nature of business was coal trading and the assessee in individual capacity was having share income from the partnership firm. During the course of search at the business premises of M/s. Black Diamond Trading Co. certain bank pass-books and cheque books were found and seized. A statement of one of the partner, namely, Mohammad Tohsin Dosani was recorded wherein he has stated that those bank accounts belonged to their patrons who were stated to be based in foreign countries. They have given their ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to close friends and / or close relatives, who were all NRIs and in fact, except for two of them, held UK and Canadian citizenship. They had deposited their funds in their NRE bank "accounts, from their own income, through banking channels, from abroad, directly in the related bank account(s). They had given their passbooks / cheque books to the appellant / his brother for safe keeping and to issue cheques, mostly for charity in India and for their personal use at the time of their annual visit to India. The bank accounts were opened by these individuals only and were operated under their signatures. No power of attorney had been given to the appellant / his brother. The AO had not issued any show cause notice before making the additions, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since past few years. After considering those facts learned CIT(A) has held as under: "8. The contentions / details filed and on record were carefully considered. The appellant has field copies of the certificates of the Canara Bank, Bombay Merc. Co. Op. Bank, which specify that these were NRO/NRE accounts and have also detailed the nature / source of the deposits therein. It is also certified that the deposits in these accounts can be made by foreign remittances / drafts. Shri Mohd. Mohsin in his statement u/s. 132(4) had also given details and the reason for the possession of bank passbooks / cheque books. The AO has not brought any evidence on record to the contrary and to refute the explanation / details, as reproduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue Department was unable to establish that any benefit was obtained by the assessee from those accounts. A statement was recorded by the assessee at the time of search and that statement was true and correct, wherein he has informed the reason of having those bank accounts and that those bank accounts belonged to all those persons in whose names the bank accounts have been opened. The funds in those accounts were for charity purpose only, he had stated. The argument of learned AR was that a statement recorded u/s.132(4) is held by various courts as true and correct. Further, he has contended that in an NRE account no Indian rupee can be credited but only foreign currency can be deposited, therefore, the amounts deposited belonged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact has also not been denied that the only foreign remittance was permissible to transfer the funds in NRE account. Considering the totality of the facts and circumstances of the case and the evidences placed on record as well as the explanation of the assessee furnished before the Revenue Authorities, we hereby hold that learned CIT(A) was right in holding that the addition was merely on a conjecture that the bank accounts belonged to "poor and gullible" relatives of the assessee, we therefore uphold the deletion and dismiss the grounds of the Revenue in respect of both the group of cases for each year. Resultantly, grounds are dismissed.
9. In the result, all the Appeals of the Revenue are dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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