Home › Income-Tax Act › Ananya Ajay Mittal v .DCIT( 2023) BCAJ -March -P. 22 ( Mum)( Trib)

Ananya Ajay Mittal v .DCIT( 2023) BCAJ -March -P. 22 ( Mum)( Trib)

S. 68 : Cash credits – Non -Resident – Foreign bank accounts – Mentioning wrong status in the return – Once the assessee is non-resident the income or deposit in the foreign bank account cannot be taxed in India – Addition was deleted . [ S. 6(1), 56(2)(v) , 153A]

The assessee  went abroad for studies in the previous year relevant to AY. 2008 -09. There was search action on father of the assessee.  Notice under section 153A was issued on the assessee. The assessee filed the return of income showing the residential status as resident . The AO taxed the entire credit reflected in Foreign Bank account u/s 68 of the Act by holding that gift from family friend did not fall under section 56(2)(v ) of the Act. On appeal the assessee contended that he was non -resident though in the return he has shown as resident . On appeal the Tribunal held that  once the assessee is non-resident  the income or deposit in the foreign bank account cannot be taxed in India . Addition was deleted .     ( ITA. Nos  6949 & 6950/Mum/2019 and 576 /Mum/ 2021 dt . 29-12 -2022 ) ( AY. 2010-11 to 2012 -13 )