9911796707
TMI Blog2024 (10) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... llenging initiation of reassessment proceedings for Assessment Year 2016-17 by issuing Notice under section 148 of the Income Tax Act (for short "the Act") dated 09.04.2024 and an order dated 09.04.2024 under section 148A (d) of the Act primarily on the ground that initiation of proceedings was on incorrect facts and it was not a case of no full and true disclosure by the assessee. 3. Facts in brief are that the petitioner is a Non-Resident Indian (For short "NRE") and for the year under consideration had earned income from overseas business and the source of his income was outside India. A Certificate of residency was issued by the competent authority of Uganda and registration was also granted by the Uganda Revenue Authority certifying h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itiation of reassessment proceeding was based on incorrect facts. The assessee has duly explained the source of fixed deposit made with the ICICI Bank for the year under consideration. The said details were provided not only along with the response to Notice under section 148 (b) but also in response to Notice under section 148(a). Complete details were furnished in reply dated 25.01.2024 explaining source of his income in relation to NRE Account. In the reply dated 25.01.2024, the details of time deposits matured in the year under consideration along with details of time deposit newly made in the year under consideration was provided. The source of fixed deposits was also explained. It was submitted by the assessee that he being NRE and ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escapement of income. 5. On the other hand, learned Senior Standing Counsel Mr. Varun Patel for the respondent submitted that basis the information, Notice under section 148A (a) was issued after following the procedure and after obtaining approval from the competent authority. In the reply dated 25.01.2024, which was in response to the Notice under section 148A (a) of the Act, the assessee failed to explain loan of Rs. 20,00,000/- received from Nileshbhai Patel. The loan was received directly in his ICICI NRE Bank Account. Further, the assessee had also received Rs. 9,92,637/- from Sohm Inc. directly in his ICICI NRE Account during the year under consideration and the source being not explained the Notice under section 148A (b) was rightl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from Nileshbhai Patel. From the bank details provided, it is evident that remittance of the loan was made from NRE account of the assessee, and source of that income was explained. The assesse's explanation is supported by the bank statement produced at Annexure "F" (Page-134 and 135). 6.2. Moreover, in the case of Nitin Mavji Vekariya (supra), this Court has held as under: "5. Undisputedly, the funds came from non-resident (external) accounts and the source therefore was beyond the reach of the authorities. Even on reading the provisions of section 10(4), it is apparent that such incomes are exempt from being included in the total income." 6.3. Thus, on both the counts that the income earned in NRE Account is exempt under section 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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