9911796707
TMI Blog2022 (6) TMI 1443X X X X Extracts X X X X X X X X Extracts X X X X ..... , an individual, who has claimed agricultural income as the only source of income. During the course of assessment proceedings, the Assessing Officer (in short 'the AO') asked for the sources of funds available in HSBC Bank, Geneva amounting to Rs. 11,13,83,849/-. In compliance, the assessee explained that the funds available in the said bank account belongs to his nephew Sh. Rajinder Singh Chatha and not to him. However, the Ld. AO being not satisfied with the submission of assessee passed assessment order U/s 143(3) r.w.s. 147 of the act, at an income of Rs. 11,13,93,349/- against the returned income of Rs. 9500/-, and thus, made an addition of Rs. 11,13,83,849/- in respect of the Assessment Year 2006-07 and similarly addition of Rs.1,00,04,919/- was made in the Assessment Year 2007-08. 3. Aggrieved with the assessment order, the assessee went in appeal before the CIT appeal who has confirmed the finding of the AO by observing as under: 4.10 I have gone through the assessment order passed by the AO, remand reports received from the AO from time to time, submissions filed by the appellant including counter comments on the reports of the AO and find that an addition of Rs. 11,13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at these transactions have been made by his nephew, Shri Rajinder Singh Chatha. 4.14 AO has after going through the material available on record held that this bank account pertains to Shri Joginder Singh Chatha, i.e. the appellant, as he (assessee) has failed to produce any evidence to substantiate his contentions and also failed to produce his nephew Shri Rajinder Singh Chatha. Further, it is stated by the AO that no such confirmation or verification from Shri Rajinder Singh Chatha could be filed to support his contentions. Accordingly, the amount of deposits of Rs.11,13,83,849 and of Rs. 1,00,04,919 made by the appellant in AY 2006-07 & 2007-08 respectively was held to be income from unexplained sources. 4.15 The appellant has in the course of present proceedings reiterated the submissions filed at the assessment stage and submitted that all the deposits made in the bank account pertain to his nephew Shri Rajinder Singh Chatha. It is submitted that from the details of bank account obtained by the AO from competent authority, it is clear that main account holder is mentioned as Shri Rajinder Singh Chatha and name of company is given as M/s Sauvignon Holdings Ltd. and on bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not specify details of this HSBC account number, amount of deposit which has been disclosed to the tax authorities in UK. AO has also pointed out that there is no confirmation from Shri R.S.Chatha regarding the authenticity of this letter or its contents and further it is not supported with corroborative documentary evidence. Further, it is not clear whether the tax advisors of Shri R.S.Chatha are competent to issue such certificate or not. 4.21 The AO has further stated that appellant has not filed any confirmation/ documents from Shri R.S.Chatha stating that money belongs to him and besides these issues, it is stated that disclosure has been made in March, 2013 and it cannot be said to have covered the case of deposits of money in the account of appellant in AY 2006-07 & 2007-08. It is further stated that as per para 6 of the letter, it is clear that cash and investments were transferred through Sauving non Holdings Ltd. to the India Trust whose settler is again Shri Joginder Singh Chatha. It essentially means that all the investments are held by the appellant. 4.22 The appellant has in response to this stated that he has filed all the documents which were received by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n him under the provisions of section 69/69A of the IT Act and has failed to furnish any evidence in this regard. The appellant has not been able to produce his nephew Shri R.S.Chatha, who is stated to be the beneficial owner of the account operated in UK. The veracity of the contentions of the appellant could not be verified either at the stage of assessment or in the course of present proceedings. The evidence filed in the course of present proceedings regarding the disclosure made by the nephew of the appellant with regard to these deposits made in the bank account of the appellant have also been found to be incorrect. The appellant was duty bound to produce atleast a confirmation from his nephew along with his sources of income, copy of ITRs filed etc. to substantiate his claim with regard to sources of deposits in the bank account. The appellant has failed to discharge this burden both at the stage of assessment as well as in the course of present proceedings. 4.26 Accordingly, I hold that amount of Rs. 11,13,83,849 deposited in the bank account during AY 2006-07 and of Rs. 1,00,04,919 during AY 2007-08 has not been explained by the appellant and therefore, addition made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year under consideration are A.Y 2006-07 & 2007-08 so, when the name of assessee was withdrawn previous to 01.04.2005 so, no addition can be made in the hands of assessee as he was not owner of this impugned account in both the assessment year under consideration. f. There are deposits in this account in 2005-06 & 2006-07 when assessee has no right or interest in this account. g. The beneficial owner is Sauvignon Holdings Ltd. whose date of creation in this account is 07.04.2004 . h. That neither assessee deposit any funds nor withdrawn the funds from this account nor he has any interest and right over the money laying in this account. Sir, translation of the French words mention in these pages are made with the help of Google translation and the result is as follows: French as mentioned in the document Translation in English Nom Name adresses postales de la personne physique postal addresses of the natural person profile client lies a la personne related customer profile person nom du profile client name of the customer profile autres personnes liees aux profile clients others related to profile customers date de cloture du profile Closing date of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthentic copy as provided by author of the letter Jarro Lynch..............." b. That the above stated point means that the contents of that letter which is on page 50-57 of the Appeal Set are authentic and true copy and the facts are certified by the HM Revenue & Customs (HMRC) authority of U.K. c. That in point 3 at page 50 of appeal set which is a letter from Stonegate Trinity LLP i.e. CA of Sh. Rajinder Singh Chatha which is an authentic copy as certified by HM Revenue & Customs (HMRC), it is clarified that "............disclosure explained that an account had initially been opened in the name of Mr. Joginder Singh Chatha that this account had been closed and another account opened in the name of Souvgion Holdings Ltd. As trustee of the India Trust and share of this company held by HSBC Trust co. Ltd. As trustee of India Trust and prupoted settler of this trust was Mr. Joginder Singh Chatha. The disclosure went on to explain that with regard to the above mentioned account at all times Mr. Rajinder Singh Chatha was regarded by the bank as the ultimate beneficial owner on whose instruction they acted..........". d. That in point 4 at page 51 of appeal set which is a letter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this impugned bank account to the revenue authority of U.K under Specific Disclosure Facility of all the irregularities in UK and in this regard we had already filed certificate of C.A. of Sh. Rajinder Singh Chatha i.e. M/s Stonegate Trinity LLP and this certificate has been verified and confirmed by HM Revenue & Customs (HMRC) authority of U.K duly states that ".............Please find enclosed a copy of letter (treaty Stamped) which I can confirm as an authentic copy as provided by author of the letter Jarro Lynch..............." as stated on point 1 of page 48 of Appeal Set. Sir, considering the facts and circumstances of this case it is requested that addition made by the Ld. Assessing Officer and confirmed by Worthy CIT(A)-2, Jalandhar without any concrete evidence may kindly be deleted. 5. Per contra, the learned DR stands by the order of the authorities below. 6. We have heard the rival contentions, perused the material on record, written submissions filed on record and the orders of the authorities below. It is noted that the assessee has filed an affidavit during the course of assessment proceedings, deposing therein fact that he had no connection with the amount me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the alleged bank account or the alleged disputed deposits in that accounts belongs to the appellant assessee and Accordingly, there appears no violation of DTAA. 10. Since, this account was opened by the Sh. Rajinder Singh Chatha as a main beneficial owner of account and that the name of assessee i.e. Joginder Singh Chatha was struck off from the account 11th April, 2004 then by no stretch of imagination assessee can be held liable to pay tax for the deposit in the above said bank account in the A.Y 2006-07 & 2007-08. Over and above, Sh. Rajinder Singh Chatha has paid all the taxes on the outstanding amount in this impugned bank account to the revenue authority of U.K under Specific Disclosure Facility of all the irregularities in UK as per the certificate of C.A. of Sh. Rajinder Singh Chatha i.e. M/s Stonegate Trinity LLP filed in this regard as above. This certificate has been verified and confirmed by HM Revenue & Customs (HMRC) authority of U.K. that reads as under- ".............Please find enclosed a copy of letter (treaty Stamped) which I can confirm as an authentic copy as provided by author of the letter Jarro Lynch..............." (Point 1, APB, page 48). 11. Con ..... 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